Q1 2026 Posco Holdings Inc Earnings Call Transcript
Key Points
- POSCO Holdings Inc (PKX) recorded consolidated revenue of KRW17.9 trillion and KRW710 billion in operating profits, showing improvements from the previous quarter.
- The lithium production subsidiaries, particularly in Argentina, have significantly reduced losses and recorded their first-ever monthly profit in March.
- POSCO International saw an increase in steel exports and demand recovery in the gas and energy sectors, contributing to profit growth.
- The strategic shift in the steel business is progressing, with the divestment of underperforming subsidiaries and the expansion of low-carbon production systems.
- POSCO Holdings Inc (PKX) plans to enhance shareholder returns with a performance-linked policy, aiming for a 35% to 40% shareholder return ratio.
- The US-Iran war has disrupted the energy supply chain, leading to unstable exchange rates and increased raw material costs, squeezing profits.
- Higher FX rates, logistics costs, and raw material prices have put pressure on margins in the steel business.
- The geopolitical risk in the Middle East and rising input costs due to FX and oil price hikes are expected to continue impacting profits in the short term.
- The lithium business faces challenges with rising raw material costs, particularly spodumene prices, which could squeeze profit margins.
- Direct employment of subcontractors may lead to increased SG&A costs, impacting overall expenses.
Hello, I'm Head of the Finance and IR Division at POSCO Holdings. My name is Kim Seung-jun. First, I'd like to thank everyone participating in the 2026 first quarter earnings call. Thank you to the investors and analysts. In the first quarter, the US, Iran war disrupted the energy supply chain, which triggered greater fluctuations in the financial market that led to unstable exchange rates.
So we witnessed aggravated challenges. Despite these headwinds, POSCO Holdings recorded consolidated revenue of KRW17.9 trillion won and KRW710 billion won in operating profits. Improvements are observed in both revenue and profit against the previous quarter. Looking at each business sector in rechargeable battery materials, lithium prices rose, helping lithium production subsidiaries to perform, significantly reducing losses.
Particularly in POSCO Argentina, plant operation is ramped up, while elevated lithium price continues to hold. As a result, in March, it recorded the first-ever monthly profit. We
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
