POSCO Holdings said on the 29th that on a consolidation basis, last year's operating profit came to 1.83 trillion won. That was down 15.7% from a year earlier. Operating profit at POSCO, the steel institutional sector, rose 21%, but major plant repair expense and one-off losses in the construction business were reflected.
POSCO Holdings' revenue fell 5% to 69.09 trillion won. Net profit was 500 billion won, down 47.4%.
POSCO Holdings made a profit in steel and LNG businesses even amid a global economic slowdown and protectionist environment. It defended short-term profitability against initial operating expense in the secondary battery materials institutional sector and one-off losses in the infrastructure institutional sector.
A POSCO Holdings official said, "We secured a foundation for long-term growth, including steel at home and abroad and investment in lithium mines," adding, "This year, we will deliver tangible results through concrete achievements in overseas steel ventures, the start of commercial production amid a recovery in lithium prices, the resolution of one-off loss expense, and restructuring of loss-making affiliates."
In the steel institutional sector, POSCO's standalone operating profit was 1.78 trillion won, up 20.8% from a year earlier. Revenue was about 35.01 trillion won, down roughly 6.8%. The company said it improved profitability through structural cost innovation such as maximizing energy efficiency.
In particular, although production and sales volumes temporarily declined due to higher key raw material costs and major plant repairs in the fourth quarter, selling prices rose from the previous quarter, defending profitability.
In the secondary battery materials institutional sector, POSCO FUTURE M maintained profitability at the previous year's level despite weak lithium prices. However, with new plants such as POSCO Argentina completed at the end of 2024 beginning commercial production, initial operating expense was proactively recognized on a one-off basis. As a result, consolidation operating profit declined on the indicators, but the company plans to quickly resolve the drag on profitability as operations stabilize.
In the infrastructure institutional sector, POSCO International maintained solid profit by expanding its value chain through LNG output expansion at Australia's Senex Energy and the acquisition of an Indonesian palm corporations.
POSCO E&C expanded orders such as for plants, but one-off loss expense from suspended construction was reflected, widening the deficit.
POSCO Holdings said the fourth quarter of last year was a temporary trough, as major plant repairs, expense from the sale of loss-making affiliates, and one-off losses in the construction business were concentrated. It projected revenue would rise this year on solid earnings from steel and LNG businesses and the start of commercial lithium production.
POSCO Holdings also announced a key management plan to realize major domestic and overseas investment plans this year and, through restructuring of low-profit, noncore assets, link them directly to revenue.
In the steel institutional sector, it will strengthen specialized competitiveness at each steel mill—Pohang (energy steel) and Gwangyang (mobility steel). It will also accelerate decarbonization with the groundbreaking of a hydrogen reduction steelmaking demo plant and, under the "complete localization strategy," push overseas joint projects without a hitch.
In the secondary battery materials institutional sector, it said profitability improvement will begin with the start of commercial lithium production in Argentina. The Australian lithium mine is expected to contribute to revenue from the second half, when the equity acquisition is completed.
In the infrastructure institutional sector, it plans to strengthen the energy value chain based on Australia's Senex Energy LNG output expansion system and the acquisition of an Indonesian palm corporations to generate continued additional profit.
POSCO Holdings plans to extend the restructuring of low-profit, noncore assets that began in 2024 through 2028 to generate a total of 2.8 trillion won in cash to fund growth investments.
Through restructuring, it completed cumulative cash generation of 73 cases totaling 1.8 trillion won through 2025. From this year through 2028, it plans to complete a total of 55 restructuring cases and generate 1 trillion won in cash.