POSCO Holdings二季度营业利润8190亿韩元、电池材料业务转盈

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Introduction & Market Context
POSCO Holdings presented its second-quarter 2026 results on July 30, showcasing a significant operational turnaround in its rechargeable battery materials business while maintaining steady growth across its core steel operations. The South Korean industrial conglomerate reported consolidated revenue of KRW 19.3 trillion and operating profit of KRW 819 billion, marking sequential improvements of 7.7% and 15.8% respectively despite headwinds from volatile energy costs and currency pressures.
The company’s shares initially declined 4.92% to $48.68 during regular trading but rebounded 5.59% in after-hours trading to $51.40, suggesting investors welcomed the operational progress, particularly in the long-struggling battery materials segment. The stock remains within its 52-week range of $44.99 to $92.40.
Quarterly Performance Highlights
As shown in the following comprehensive overview of consolidated business performance, POSCO Holdings delivered improvements across its three major business segments: Steel, Rechargeable Battery Materials, and Infrastructure.
The company’s operating margin expanded to 4.3% in Q2 2026 from 4.0% in the prior quarter, while EBITDA reached KRW 1.87 trillion, up KRW 112 billion quarter-over-quarter. Net profit totaled KRW 761 billion, though this figure includes a one-time gain of KRW 392 billion from the divestment of PZSS and QPSS steel processing centers.
On a segment basis, the Steel division generated KRW 15.4 trillion in revenue with KRW 403 billion in operating profit. The Rechargeable Battery Materials segment posted revenue of KRW 1.05 trillion and swung to an operating profit of KRW 41 billion after nine consecutive quarters of losses. Infrastructure revenue reached KRW 15.5 trillion with operating profit of KRW 493 billion.
Battery Materials Turnaround
The most significant development in Q2 was the rechargeable battery materials business achieving profitability for the first time since Q1 2024. This turnaround was driven primarily by POSCO Argentina’s first-ever quarterly operating profit and POSCO Future M’s continued margin expansion.
As illustrated in the following performance breakdown, POSCO Future M achieved an operating profit of KRW 27 billion on revenue of KRW 680 billion, representing a 3.9% operating margin.
The Energy Material segment, which includes cathode active materials (CAM) and anode active materials (AAM), contributed KRW 3 billion in operating profit despite a revenue decline to KRW 328 billion. The company attributed this to improved inventory valuation and recovering overseas sales. The Base Material segment, producing oil-linked chemical products, generated KRW 24 billion in operating profit on KRW 352 billion in revenue, benefiting from higher selling prices.
POSCO’s lithium subsidiaries showed dramatic improvement across the board, as detailed in the following chart:
POSCO Argentina recorded its inaugural quarterly operating profit of KRW 11 billion on revenue of KRW 108 billion, up from a loss of KRW 18 billion in Q1 2026. The company attributed this milestone to stabilized operations at its CP1 facility and preparations for CP2 completion scheduled for October 2026. Sales volume increased as the company expanded deliveries of certified products to global OEMs and multiple battery manufacturers.
POSCO Pilbara Lithium Solution narrowed its operating loss to just KRW 1 billion from KRW 3 billion in the prior quarter, with revenue reaching KRW 102 billion. The improvement came from higher selling prices, increased utilization rates, and the use of lower-cost raw materials.
POSCO HY Clean Metal maintained its profitability streak since December 2025, posting KRW 3 billion in operating profit on revenue of KRW 56 billion, supported by sustained cost competitiveness through high utilization rates and access to low-cost feedstock.
Steel Business Resilience
POSCO’s core steel operations demonstrated resilience despite rising raw material costs, with the following detailed performance analysis showing how higher selling prices and increased sales volume offset cost pressures:
The company’s crude steel production reached 8,884 thousand tons in Q2 2026, with sales volume of 8,357 thousand tons and a utilization rate of 89.5%. Strategic products represented 27.5% of total sales, up slightly from the prior quarter. Revenue increased to KRW 9.4 trillion while operating profit reached KRW 274 billion, representing a 2.9% operating margin.
The waterfall chart on the slide illustrates how POSCO navigated competing pressures: higher production and sales volume contributed KRW 19 billion to operating profit, while improved selling prices added KRW 432 billion. However, these gains were partially offset by KRW 304 billion in higher raw material costs and KRW 86 billion in increased expenses, primarily from elevated oil prices affecting logistics and refurbishment costs.
The company’s overseas steel subsidiaries maintained profitability despite challenging conditions, as shown in this regional breakdown:
PT. Krakatau POSCO in Indonesia generated KRW 706 billion in revenue and KRW 15 billion in operating profit, maintaining profitability through cost-cutting and increased domestic sales despite the EU’s new tariff rate quotas and a weakening Indonesian rupiah. POSCO Maharashtra in India posted KRW 543 billion in revenue and KRW 28 billion in operating profit, optimizing its sales mix toward automotive and electrical steel. PY VINA in Vietnam delivered KRW 120 billion in revenue and KRW 4 billion in operating profit through flexible sales mix management and increased domestic penetration.
Strategic Growth Initiatives
POSCO Holdings unveiled several major strategic initiatives in Q2 2026 aimed at strengthening its position in the global battery materials and advanced materials value chains.
The company’s enhanced rechargeable battery materials competence is illustrated in the following strategic developments:
On April 30, 2026, POSCO signed an investment agreement with Mineral Resources of Australia to establish an intermediate holding company with a 30% stake for $765 million. This partnership secures long-term lithium concentrate offtake rights from the Wodgina and Mt. Marion mines, two Tier-One Australian lithium operations. The company plans to expand production capacity at Wodgina from 750,000 to 820,000 tons per annum, with a flotation facility upgrade at Mt. Marion scheduled for 2028.
In a significant move into the North American lithium market, POSCO became the first Korean company to pursue Direct Lithium Extraction (DLE) demonstration operations locally in the United States. The company signed an agreement with Anson Resources on June 10 to cooperate on a DLE demo plant in Utah, expected to become operational in 2027. Technology validation is planned by 2028, with the goal of proving the commercial viability of processing low-grade brine lithium to expand POSCO’s lithium business in North America.
POSCO Future M broke ground on its Pohang LFP cathode plant, targeting completion by October 2027 and commercial production by December 2027. The company is also recalibrating part of its Pohang 2-2 NCM cathode production lines to LFP production, aiming for commercial readiness by January 2027 to respond to growing demand from energy storage systems and entry-level electric vehicles.
The company’s advanced materials initiatives are detailed in the following overview:
POSCO Air Solution completed construction of a high-purity rare gas plant in Gwangyang Donghoan on June 17, localizing key materials for the semiconductor and aerospace industries. The facility will annually produce 130,000 Nm³ of xenon, krypton, and neon gases, sufficient to supply approximately 52% of domestic semiconductor rare gas demand. The plant leverages feedstock from steel works oxygen plants to build a reliable supply chain.
POSCO International signed a rare earth business partnership agreement with U.S.-based ReElement Technologies on May 22, committing to a $200 million project targeting commercial operation by 2028. The joint venture, with operational control given to POSCO International, aims to build an integrated value chain linking Southeast Asian resources to separation and purification facilities in the United States for permanent magnet production.
POSCO completed its Electric Arc Furnace (EAF) in Gwangyang on June 17, representing a KRW 600 billion investment in the largest domestic EAF with 2.5 million tons per annum capacity. The scrap-based production process can reduce carbon emissions by up to 75% compared to blast furnace production, enabling the supply of carbon-reduced steel. The company is developing "hot metal mixing" technology combining blast furnace and EAF hot metal to expand capacity for premium steel products including automotive steel sheets and electrical steel.
Infrastructure Segment Performance
POSCO’s infrastructure businesses delivered strong results in Q2 2026, with POSCO International achieving record quarterly and half-year operating profit.
As detailed in the following segment analysis, POSCO International posted revenue of KRW 9.6 trillion and operating profit of KRW 429 billion, representing a 4.5% operating margin:
The Energy segment, encompassing E&P gas fields and LNG generation and terminals, contributed KRW 226 billion in operating profit on revenue of KRW 1.3 trillion. Performance improved due to selling price increases and favorable foreign exchange movements at the Myanmar gas field, combined with expansion of the Senex gas field in Australia.
The Steel Materials and other trading segments generated KRW 203 billion in operating profit on revenue of KRW 8.3 trillion. Indonesian palm oil operations recovered from Q1’s weather-related slowdown, while the trading subsidiary leveraged its LNG trading capacity to enhance profitability despite the effect of deferred recognition of countervailing duty assessments in the United States.
POSCO E&C’s performance is shown in the following breakdown:
The construction and engineering subsidiary posted revenue of KRW 1.8 trillion and operating profit of KRW 44 billion, representing a 2.5% operating margin. Revenue from the Construction segment rose to KRW 1.2 trillion with operating profit of KRW 96 billion, driven by accelerated project completion and early initiation of the Songdo G5 construction. However, the Plant segment experienced additional costs from the Samcheok Bluepower project, resulting in an operating loss of KRW 50 billion despite revenue growth from captive business including brine lithium phase 2.
The company secured KRW 4.9 trillion in new orders during Q2, including construction of a terminal in Thailand, the Wirye POSCO Global Center Site 2, and multiple metropolitan redevelopment and apartment housing projects.
Portfolio Management Progress
POSCO Holdings continued its strategic portfolio optimization program, generating KRW 475.4 billion in cash proceeds from 12 projects during the first half of 2026. This brings cumulative cash proceeds from 2024 through 1H 2026 to KRW 2.2 trillion from 85 completed projects.
The Steel segment contributed KRW 434 billion through four divestments, including the completed sale of shares in PZSS, QPSS, and an STS processing center, along with the disposal of TEMC shares. The Rechargeable Battery Materials segment generated KRW 26.1 billion from POSCO Future M’s sale of shares in Sinuo, a Chinese anode producer.
The Infrastructure segment delivered KRW 7.3 billion from seven divestments and liquidations, including POSCO International’s sale of its stake in CJ Philippines, POSCO E&C’s divestiture of the Busan LCT Promotion Center and an Indonesian hotel, and POSCO DX’s sale of K Bank stocks.
The company adjusted its portfolio management goal from "KRW 2.8 trillion by 2027" to "KRW 3.5 trillion by 2028," with 44 additional projects expected to generate KRW 1.3 trillion between 2H 2026 and 2028.
Safety Performance
POSCO Holdings emphasized its commitment to workplace safety, presenting comparative metrics showing improvement across key indicators:
The company’s Lost Time Injury Frequency Rate (LTIFR) stood at 0.7 in 1H 2026, remaining below the global steel industry average of 0.8. Serious accidents decreased significantly to 2 in the first half of 2026 from 9 in full-year 2025, while the accident rate improved to 0.08%, matching the Korean overall rate and representing substantial improvement from 0.14% in prior years.
The company implemented enhanced safety systems including group-wide safety management evaluation guidelines developed in collaboration with dss+, a global safety consulting firm. POSCO expanded fair bidding practices, abolished lowest-bid contracts, and strengthened supplier safety programs. The company trained 204 sessions of the "Shared Responsibility Plus" safety workshop and operated the POSCO Group Safety Academy, supporting safety training for POSCO, 25 affiliates, 199 suppliers, and 274 regional small and medium enterprises.
Financial Position
The company’s consolidated financial statements reveal a strengthening operational foundation alongside increased investment activity, as shown in the following income statement:
Gross profit reached KRW 1.66 trillion in Q2 2026, representing an 8.6% gross margin, up from 8.5% in the prior quarter. Selling, general and administrative expenses increased to KRW 840 billion from KRW 810 billion quarter-over-quarter. Profit before tax totaled KRW 911 billion, while net profit attributable to controlling interest reached KRW 617 billion. Earnings per share came in at KRW 7,785, up from KRW 5,896 in Q1 2026.
The balance sheet reflects the company’s ongoing capital deployment:
Total assets increased to KRW 109.7 trillion from KRW 108.3 trillion in the prior quarter, driven by higher accounts receivable of KRW 13.3 trillion and non-current assets of KRW 64.5 trillion. Cash and cash equivalents declined to KRW 14.3 trillion from KRW 14.9 trillion, reflecting active capital expenditure of KRW 3.7 trillion in the first half of 2026.
Total interest-bearing debt stood at KRW 30.4 trillion, resulting in net debt of KRW 16.1 trillion and a net debt-to-equity ratio of 25.1%, up from 24.2% in the prior quarter. The increase reflects the company’s aggressive investment program in battery materials, advanced materials, and green steel technologies while maintaining a manageable leverage profile.
Forward-Looking Statements
POSCO Holdings indicated expectations for continued performance improvement in Q3 2026 despite anticipated increases in some raw material costs. The company projects that higher production volumes should help spread fixed costs, while price increases and stronger sales should support profit growth.
For the rechargeable battery materials business, management anticipates a temporary slowdown in Q3 due to seasonal maintenance in Argentina, including LP dryer equipment replacement. Full operation is expected to resume in Q4, when certified product sales should begin to phase in, with Q4 performance expected to exceed Q2 levels.
The company outlined several longer-term strategic projects: POSCO Argentina Phase 3 and Phase 4 aim to lift annual output to 100,000 tons and shift production toward lithium carbonate, with a pre-feasibility study expected by end of 2026 and a final investment decision by end of 2027. The hard-rock lithium joint venture with Mineral Resources is planned for October 2026, while the rare earth partnership with ReElement Technologies targets commercial production in 2028.
Management emphasized that restructuring initiatives should continue to improve cash flow, with expectations for portfolio optimization to deliver enhanced financial flexibility while the company pursues growth investments in battery materials, advanced materials, and low-carbon steel production technologies.
Full presentation:
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