Q2 2025 Posco Holdings Inc Earnings Call Transcript
Key Points
- POSCO Holdings Inc (PKX) reported consolidated revenue of â‚©17.6 trillion and an operating profit of â‚©610 billion, showing resilience despite global tariff challenges.
- The company's steel business saw noticeable improvement, with increased sales volume and improved mill margins due to lower iron ore and coking coal prices.
- POSCO Holdings Inc (PKX) achieved a second-quarter operating profit margin of 5.7%, marking growth for two consecutive quarters.
- Efficiency improvements, including AI integration and cost-cutting measures, have positively impacted the company's cost structure and profitability.
- The company is actively pursuing strategic investments, such as a joint venture in Argentina for lithium mining, which is expected to generate synergies and capitalize on market opportunities.
- The rechargeable battery materials segment faced increased deficits due to initial operation costs and falling lithium prices.
- POSCO Stainless Steel PSS, a subsidiary in China, has been registering sizeable deficits since 2022 due to oversupply and local government policies.
- The company's overseas projects, such as the Malaysia power plant and Poland's incinerator, incurred additional costs, impacting profitability.
- The lithium business is facing challenges with certification and ramp-up stages, delaying potential profitability.
- POSCO Holdings Inc (PKX) is dealing with safety incidents in its ENC division, which may impact future financial results once investigations are complete.
Hello everyone. We'd like to begin the Posco Holdings earnings call presentation.
(Operator Instructions)
Hello everyone.
I head up finance and IR at Posco Goldings. My name is Seung-Jun Kim.
As you have already seen.
I'd like to first begin by thanking all of you for taking time out of your busy schedule to attend this earnings conference call. As the past second quarter was marred by the intensifying global tariff war that began early this year. It was a time that saw incremental uncertainties more so than ever before. Regardless of the hardship and challenges, Posco Holdings did its best to generate sustained growth. As a result, our consolidated revenue hit â©17.6 trillion, operating price that was â©610 billion.
By key business area we observed noticeable improvement in steel in both local and overseas steel businesses quarter on quarter, sales volume grew to push up revenues with lower prices of iron ore and coking coal, mill margin improved, helping to
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