Consolidated revenue of KRW 17.261 trillion and operating profit of KRW 639 billion, marking the third consecutive quarter of operating profit growth
Steel segment records operating margin in the 6% range on a standalone POSCO basis, continuing efforts to restore core competitiveness through cost structure improvements
Secondary battery materials segment narrows losses, aided by increased cathode sales at POSCO Future M
Infrastructure segment sees profit decline due to one-off losses at POSCO E&C, despite strong power generation earnings at POSCO International
POSCO Holdings reported consolidated revenue of KRW 17.261 trillion, operating profit of KRW 639 billion, and net profit of KRW 387 billion for the third quarter.
Despite heightened management uncertainty from strengthened protectionism in major global markets, operating profit rose by approximately KRW 32 billion and net profit by KRW 303 billion compared to the previous quarter, driven by recovery in steel business performance. This marks the third consecutive quarter of improvement in consolidated operating profit.
The steel business has shown a trend of improvement in operating and net profit for three consecutive quarters since bottoming out in Q4 last year. In this quarter, although revenue slightly declined from the previous quarter due to lower steel product prices, operating profit increased thanks to recovery in utilization rates and continued efforts to strengthen cost competitiveness. On a standalone basis, POSCO recorded operating profit of KRW 585 billion and an operating margin of 6.6%, continuing to enhance profitability.
In the secondary battery materials business, losses narrowed in Q3 due to increased cathode sales and reversal of inventory valuation losses following a rise in lithium prices. In particular, POSCO Future M saw both revenue and operating profit increase compared to the previous quarter, supported by higher cathode sales from the full-scale operation of its precursor plant completed in June, and turned a net profit.
In the infrastructure business, POSCO International maintained solid earnings thanks to strong power generation profits from increased summer electricity demand and higher sales from Australia’s Senex gas field. However, POSCO E&C saw a decline in operating profit due to recognition of estimated losses from the Shinansan Line accident and a temporary suspension of all construction sites for safety inspections.
POSCO Holdings also highlighted the results of its restructuring of low-profit and non-core assets, which has been underway since last year. In Q3 alone, POSCO Group completed seven restructuring deals, generating approximately KRW 400 billion in cash. The Group plans to carry out an additional 63 restructuring projects by 2027, aiming to generate KRW 1.2 trillion in additional cash and strengthen its financial soundness.