POSCO Q2 Earnings Call Highlights

POSCO Holdings reported higher second-quarter earnings as profit improved across its steel, rechargeable battery materials and energy businesses, while its Argentina lithium operation posted its first quarterly operating profit. The company recorded consolidated revenue of KRW 19.3 trillion in the second quarter of 2026, up KRW 1.4 trillion from the prior quarter. Operating profit rose 16% sequentially to KRW 819 billion, while quarterly EBITDA totaled KRW 1.9 trillion. Capital expenditures were KRW 2 trillion during the quarter and KRW 3.7 trillion for the first half. Get POSCO alerts: Sign Up Seung-Jun Kim, head of Finance and IR at POSCO Holdings, said the results were achieved despite energy-supply risks associated with the Middle East conflict and continued weakness in the Korean won. He said profit increased from the prior quarter in each of the company’s major steel, rechargeable battery materials and energy segments. Steel Profit Recovery Expected to Continue POSCO’s steel business increased profit by KRW 58 billion from the prior quarter. The company said rising logistics and energy costs, exchange-rate movements and raw-material volatility created headwinds, but higher production and sales volumes, along with partial price increases, supported a recovery. POSCO, the company’s steelmaking affiliate, reported separate operating profit of KRW 270 billion, up KRW 60 billion sequentially. Management expects steel performance to improve further in the third quarter as increased production offsets fixed costs and the company pursues higher sales volumes and prices. Roh Sung-rae, chief of the Marketing Office, said the company expects to take a gradual approach to price adjustments in the second half. In automotive steel, POSCO is negotiating under formula-based pricing and plans to phase in the effects of oil-price movements and other volatility. In shipbuilding, where demand remains strong, the company plans to continue reflecting cost variables in prices. Home-appliance steel pricing remains more conservative as production shifts toward Southeast Asia, he said. On European trade conditions, the company said Europe accounts for roughly 10% to 15% of POSCO’s total exports, depending on the year. POSCO said it is working through government discussions to minimize the impact of quota reductions and plans to focus on higher-margin products in Europe. It also said it would shift volumes to other markets if necessary. The company completed its 2.5 million-ton electric arc furnace, or EAF, in Gwangyang in June. During the early operating period, it plans to blend molten iron from blast furnaces and the EAF to make general-purpose steel, while continuing development work on higher-grade products, including automotive and electrical steel. POSCO said the facility is intended to help address European carbon-border and environmental regulations. Management said the EAF’s cost is included in its second-half business outlook. The company is testing supplies of carbon-reduced steel with global original equipment manufacturers and energy companies, and expects that a premium market for such products can help offset higher costs. It said profitability should improve as utilization rises and production of higher-grade products expands. Lithium Business Reaches Milestones The rechargeable battery materials business returned to an operating surplus for the first time in nine quarters, reporting operating profit of KRW 41 billion. POSCO Argentina recorded operating profit of KRW 11 billion, its first quarterly profit since incorporation, as sales volume climbed 160% from the first quarter and revenue rose 290%. POSCO expects a temporary slowdown in Argentina during the third quarter because winter conditions in the Southern Hemisphere reduce pond evaporation and the company is replacing LP dryer equ...