POSCO Group holding company POSCO Holdings posted operating profit in the second quarter that beat expectations, helped by a turnaround to profit in the secondary battery materials institutional sector and strong results in the infrastructure institutional sector. However, POSCO, the steel business unit, saw its second-quarter operating profit fall to nearly half from a year earlier due to higher costs.
POSCO Holdings disclosed on the 30th that, on a consolidation basis, second-quarter revenue was 19.259 trillion won, up 9.7% from the second quarter of last year. Operating profit for the same period was 819 billion won, up 34.9%. Net profit was 761 billion won, up 808.0%.
This topped the securities market consensus (average estimate). According to FnGuide, POSCO Holdings' second-quarter revenue was estimated at 18.1086 trillion won, and operating profit at 787.5 billion won.
By business institutional sector, POSCO, the steel operating company, saw operating profit drop to nearly half from a year earlier. On a separate basis, POSCO's second-quarter revenue was 9.42 trillion won, up 5.2% from the second quarter of last year. Operating profit for the same period was 270 billion won, down 46.6%. The decline was attributed to cost increases reflecting a stronger dollar and higher coking coal prices.
POSCO Holdings said, "POSCO saw slight increases in revenue and operating profit from the previous quarter thanks to higher selling prices and increased sales volume despite higher raw material unit costs and oil prices." POSCO's second-quarter revenue and operating profit rose 5.4% and 28.5%, respectively, from the previous quarter.
In the secondary battery materials institutional sector, POSCO FUTURE M returned to profit. On a standalone basis, POSCO FUTURE M's second-quarter revenue was 614.046 billion won, up 6.0% from the second quarter of last year. POSCO FUTURE M posted operating profit of 26.999 billion won in the second quarter, swinging to a profit from an operating loss of 3.814 billion won in the second quarter of last year.
POSCO Holdings explained, "POSCO FUTURE M's operating profit improved due to inventory valuation effects for cathode materials and a recovery in sales volume to major customers for anode materials."
POSCO Argentina turned profitable on a quarterly basis for the first time thanks to stabilization of operations at Brine Lithium Plant 1 and facility improvements. In the second half, initial operating costs are expected to rise with the completion of Plant 2. POSCO Holdings said, "We plan to enhance POSCO Argentina's profitability through phased capacity increases and expanded sales."
POSCO-Pilbara LITHIUM SOLUTION improved its bottom line on expanded sales and higher prices, and POSCO HY Clean Metal has been posting monthly profits since Dec. 2025 thanks to high operating rates and increased cost competitiveness, POSCO Holdings said.
In the infrastructure institutional sector, POSCO International recorded its highest-ever quarterly operating profit on the back of profit growth from the Myanmar and Australia gas fields and the Indonesia palm business. POSCO International's second-quarter consolidation basis revenue was 9.6232 trillion won, up 18.4% from the second quarter of last year. Operating profit for the same period was 429 billion won, up 26.9%.
POSCO Holdings said it completed 12 restructurings in the first half of this year, securing about 480 billion won in cash. Since 2024, POSCO Holdings has secured 2.2 trillion won in cash through a cumulative 85 restructurings. It set a goal to complete 129 restructurings by 2028 to generate 3.5 trillion won in cash.
POSCO Holdings said, "Building on first-half achievements such as the lithium business's return to profit, the start-up of POSCO Gwangyang Steelworks' new electric furnace, and POSCO International's highest-ever quarterly operating profit, we will enhance profitability and pursue strategic investments in parallel under our Triple Core strategy for industrial resources (steel), strategic resources (lithium, rare earths, rare gases, etc.), and energy resources (LNG, etc.) to continuously grow corporate value."