POSCO Holdings Inc.

POSCO Holdings reported Q2 consolidated revenue of KRW 19.3 trillion, up KRW 1.4 trillion quarter over quarter, and operating profit of KRW 819 billion, up 16% quarter over quarter. Quarterly EBITDA was KRW 1.9 trillion, and CapEx was KRW 2 trillion in the quarter, bringing first-half CapEx to KRW 3.7 trillion. By segment, steel operating profit improved by KRW 58 billion quarter over quarter to KRW 274 billion, RBM swung to a KRW 41 billion operating profit, POSCO Argentina posted KRW 11 billion of operating profit, POSCO International delivered its highest quarterly profit, and POSCO E&C recorded KRW 44 billion of operating profit. For Q3, management said POSCO expects profitability to keep improving, targeting crude steel production of approximately 9 million tonnes, while lithium may temporarily soften before a more meaningful step-up in Q4 as Argentina comes back to full operation and certified products start shipping.

Seung-Jun Kim said the quarter showed continued profit improvement despite headwinds from Middle East conflict-related energy and logistics risk and a weaker won. He framed the company’s strategy around two pillars: improving profitability by business and investing for future growth, citing the first EAF operation in Gwangyang and the HyREX demo plant start. On outlook, he emphasized that steel should show more visible gains in Q3 and that lithium should level up more meaningfully in Q4 after seasonal and equipment-related disruption in Argentina.

Young-Ah Han highlighted the hard numbers: revenue of KRW 19.3 trillion, operating profit of KRW 819 billion, EBITDA of KRW 1.9 trillion, and CapEx of KRW 2 trillion in Q2. She said H1 CapEx totaled KRW 3.7 trillion and that 12 restructuring projects generated KRW 475.4 billion in additional cash. She also pointed to POSCO’s steel margin recovery, with operating profit of KRW 274 billion and the carbon steel average selling price rising from KRW 920,000/tonne to KRW 962,000/tonne, while noting raw material costs rose about 6% quarter over quarter. She added that domestic sales share increased to 55.5% and that POSCO Argentina’s Q2 operating profit was KRW 11 billion.

Analysts focused on steel pricing, EU quotas and tariffs, lithium profitability, rare earth plans, shareholder returns, and the economics of the new Gwangyang EAF. Management said steel prices would be adjusted gradually as costs move, that Europe is roughly 10% to 15% of exports and that POSCO will try to minimize quota reductions through government talks and trade channels, while still shifting toward higher-margin products. On lithium, management said brine economics are strong enough to target about 80% operating profit in a favorable long-term scenario, but hard rock remains sensitive to spodumene prices; for rare earths, POSCO said it is sourcing raw materials from Southeast Asia, pursuing JVs, and building internal separation/refining capability through R&D. On shareholder returns, management reiterated that about 90% of equity-divestment proceeds would fund CapEx and 10% would support shareholder returns, but said final execution still needs board approval.