While the company achieved an increase in profit within its steel unit through cost reduction measures, exceptional items in construction and infrastructure weighed on overall group results.
In a statement released on 29 March, POSCO Holdings announced that consolidated operating profit totaled 1.83 trillion won, marking a 15.7% decrease compared with the previous year. Operating profit in the corporate sector covering steel operations increased by 21%; however, large-scale facility repair expenses and one-off losses in the construction business prevented this improvement from being fully reflected in consolidated financial results.
Total revenue decreased by 5% to 69.09 trillion won, while net profit declined by 47.4% to 500 billion won. Despite the global economic slowdown and rising protectionist trends, POSCO Holdings managed to maintain profitability in its steel and LNG businesses. In contrast, initial operating expenses in secondary battery materials and one-off losses in the infrastructure segment exerted pressure on short-term profitability.
Company officials emphasized that domestic and overseas investments in steel and lithium mining have established a solid foundation for long-term growth. A Posco Holdings official stated that the company aims to deliver stronger results this year through tangible progress in overseas steel projects, the start of commercial production alongside a recovery in lithium prices, the elimination of one-off loss items, and the restructuring of loss-making subsidiaries.
Within the steel corporate sector, POSCO’s standalone operating profit increased by 20.8% year on year to 1.78 trillion won. Revenue, however, decreased by approximately 6.8% to 35.01 trillion won. The company reported that structural cost improvements focused on enhancing energy efficiency strengthened profitability.
In the fourth quarter, production and sales volumes temporarily decreased due to higher raw material costs and large-scale facility maintenance. Nevertheless, higher selling prices compared with the previous quarter supported the preservation of margins.
In the secondary battery materials segment, Posco Future M managed to maintain profitability at the previous year’s level despite weak lithium prices. However, initial operating expenses arising from new facilities, including POSCO Argentina, which began commercial production at the end of 2024, led to a temporary decrease in consolidated operating profit. The company expects this negative impact to fade quickly as operations stabilize.
In the infrastructure segment, POSCO International strengthened its value chain and delivered a solid profitability performance by expanding LNG production through its Senex Energy investment in Australia and acquiring a palm oil company in Indonesia.
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