Consolidated sales of KRW 69.095 trillion, operating profit of KRW 1.827 trillion, and net profit of KRW 504 billion
Steel and LNG-centered energy businesses maintained profitability, offsetting temporary losses from major plant repairs and construction projects in Q4
This year’s investment achievements include overseas steel joint ventures and lithium mine equity acquisitions; commercial lithium production expected to drive profit rebound
73 restructuring cases completed, generating KRW 1.8 trillion in cash; additional 55 cases planned by 2028 to generate KRW 1 trillion for growth investments
POSCO Holdings announced its 2025 consolidated results, reporting sales of KRW 69.095 trillion, operating profit of KRW 1.827 trillion, and net profit of KRW 504 billion.
Despite a global economic slowdown and heightened protectionism, POSCO Holdings defended short-term profitability by leveraging solid earnings from its steel and LNG businesses, offsetting initial operating costs in the secondary battery materials segment and one-off losses in the infrastructure segment.
In particular, the company secured a long-term growth foundation through domestic and overseas steel investments and lithium mine acquisitions. This year, POSCO Holdings expects tangible results from overseas steel expansion, the commencement of commercial lithium production amid a recovering lithium price trend, resolution of one-off loss factors, and restructuring of loss-making subsidiaries.
[Steel segment]
On a separate basis, POSCO’s steel sales fell 6.8% year-on-year to KRW 35.011 trillion. However, structural cost innovations such as maximizing energy efficiency improved profitability, with operating profit rising 20.8% year-on-year to KRW 1.78 trillion, marking a successful rebound.
Although Q4 saw a temporary drop in production and sales due to rising raw material costs and major plant repairs, higher sales prices compared to the previous quarter helped defend profitability.
[Secondary battery materials segment]
POSCO Future M maintained profitability at the previous year’s level despite weak lithium prices. Newly completed plants, such as POSCO Argentina, began commercial production at the end of 2024, with initial operating costs reflected upfront, leading to a temporary decline in consolidated operating profit. The company plans to quickly offset these factors as operations stabilize.
[Infrastructure segment]
POSCO International maintained solid earnings by expanding its value chain through LNG production increases at Australia’s Senex Energy and acquiring an Indonesian palm company. POSCO E&C, despite increased plant orders, saw its losses widen due to one-off costs from construction suspensions.
POSCO Holdings noted that the temporary low point in Q4—caused by major plant repairs, costs from selling loss-making subsidiaries, and one-off construction losses—has passed. The company expects an upward trend in profits this year, driven by solid steel and LNG earnings and the start of commercial lithium production.
[Key management plans for 2026]
POSCO Holdings will execute major domestic and overseas investment plans and restructure low-profit/non-core assets to directly link them to profits.
• Steel segment: Strengthen specialized competitiveness at Pohang Works (energy steel) and Gwangyang Works (mobility steel), accelerate decarbonization with the start of construction on the hydrogen reduction steelmaking demo plant, and steadily advance overseas joint projects under the “complete localization strategy.”
• Secondary battery materials segment: Begin profitability improvement with the start of commercial lithium production in Argentina; Australia’s lithium mine equity acquisition will contribute to earnings immediately from the second half of the year.
• Infrastructure segment: Strengthen the energy value chain through LNG production expansion at Senex Energy in Australia and the acquisition of an Indonesian palm company, generating continuous additional profits.
[Restructuring plan]
POSCO Holdings will extend the restructuring of low-profit/non-core assets, initiated in 2024, through 2028, aiming to generate a total of KRW 2.8 trillion in cash to fund growth investments.
• Status: 73 cases completed by 2025, generating KRW 1.8 trillion in cash
• Plan: 55 additional cases from 2026 to 2028, generating KRW 1 trillion in cash