Announces Q1 2025 results… Consolidated sales of 17.437 trillion won, operating profit of 568 billion won, showing improved profitability compared to the previous quarter
Successful management improvement efforts include cost reduction in the steel business, diversification of cathode and anode material supply chains in the energy materials business, and securing gas field profits in the infrastructure business
Core strategies in Chairman In-hwa Chang’s second year taking shape… Securing global future growth engines through strategic alliances with Hyundai Motor Group and India’s JSW Group
POSCO Holdings announced its first quarter results with consolidated sales of 17.437 trillion won, an operating profit of 568 billion won, and a net profit of 344 billion won.
Despite deteriorating business conditions due to global tariff wars and economic uncertainties, sales decreased by approximately △2.1% compared to the previous quarter (Q4 2024). Still, operating profit increased by 473 billion won compared to the prior quarter, improving performance and restoring operating profit to the level of the same period last year (Q1 2024).
In the steel business, while production and sales volume decreased due to increased maintenance at major plants, operating profit recorded 450 billion won, a 34.7% increase compared to the previous quarter, owing to improved profitability from sales price increases and cost reduction efforts.
In the energy materials business, POSCO Future M expanded sales of high-nickel cathode materials, and anode material sales volume increased as customers diversified their supply chains. Additionally, the operating loss decreased compared to the previous quarter due to improved profitability of energy materials subsidiaries in their early operational stages.
In the infrastructure business sector, which includes energy, construction, DX, and logistics businesses, operating profit reached 307 billion won, an increase of 181.7% compared to the previous quarter, driven by increased gas field sales at POSCO International and improved performance in the power generation sector.
On this day, POSCO Holdings also explained the recently announced mutual cooperation with Hyundai Motor Group in the steel and secondary battery fields, core business investment plans, and restructuring achievements for low-profit and non-core assets.
Since Chairman In-hwa Chang’s inauguration in March last year, POSCO Group has been reorganizing its business around steel, energy materials, and new businesses according to the ‘2Core+New Engine’ strategy. The steel business is pursuing a ‘complete localization strategy’ by securing local bases focused on high-growth, high-profit markets.
To this end, POSCO Group agreed last year to pursue a joint integrated steel mill project with India’s most prominent steel group, JSW Group, and recently announced strengthened mutual cooperation with Hyundai Motor Group in future mobility business areas, including steel and secondary battery materials. POSCO Group plans to secure future growth engines in core business areas by securing a foothold in the North American steel market while responding to global trade environment crises through joint investment in a U.S. steel mill with Hyundai Motor Group, and by strengthening strategic alliances with global top companies in the secondary battery materials business.
Moreover, POSCO Group is rapidly executing the restructuring of low-profit and non-core assets. The restructuring that began last year has generated approximately 950 billion won in cash to date, with plans to create a cumulative cash generation of 2.1 trillion won by the end of this year. The company also announced investment plans of 8.8 trillion won this year, emphasizing continued investment in the group’s core businesses, including the establishment of an electric arc furnace in Gwangyang, phase 2 of Argentina’s lithium brine project, and increased production at Australia’s Senex Energy.