POSCO Holdings' Q2 Profit Surges on Lithium, LNG, and Steel Gains

POSCO Holdings announced a significant improvement in its second-quarter financial results, with operating profit rising 15.8% to 819 billion won (approximately $590 million USD) compared to the previous quarter. This growth was fueled by robust performance across its key business areas, particularly infrastructure and battery materials.

The company's infrastructure division delivered its highest-ever quarterly operating profit, reaching 493 billion won. This success was attributed to increased earnings from gas fields in Myanmar and Australia, as well as its palm oil business in Indonesia. POSCO E&C also contributed with improved earnings from its construction projects, posting 44 billion won in operating profit for the quarter.

POSCO Holdings' battery materials segment made a notable turnaround, shifting from a 7 billion won loss in the previous quarter to a 41 billion won profit. This recovery was driven by the stabilization of lithium production in Argentina and improved sales at POSCO Future M, a key supplier of cathode materials. POSCO-Pilbara Lithium Solutions also saw improved profitability due to increased sales and prices.

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Especially as data centers are trending towards larger scale, we believe steel structures can be competitive. We expect demand for not only building exteriors but also electrical steel and data racks for interiors to increase, so we will develop solutions and respond systematically.

Even the traditional steel division experienced a rebound, with operating profit increasing by 58 billion won to 403 billion won. Despite rising raw material costs, oil prices, and logistics expenses, higher carbon steel prices and increased production and sales volumes helped offset these increased costs. However, the company noted that operating profit margins for the steel division remain lower than in previous years.

Looking ahead, POSCO Holdings plans to continue its 'Triple Core' strategy, focusing on steel, strategic resources like lithium and rare earths, and energy resources such as liquefied natural gas. The company aims to leverage growth opportunities in emerging sectors like data centers and energy storage systems, where demand for steel is expected to increase.

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We will strive to ensure continuous growth in corporate value through two pillars: improving profitability by business unit and executing strategies for long-term growth.