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Consolidated Revenue: KRW69.1 trillion, a decline of 5% year-on-year.

Operating Profit: KRW1.8 trillion, a decrease of 16% year-on-year.

Operating Margin: Increased from 3.9% to 5% for POSCO.

Consolidated EBITDA: KRW5.9 trillion.

Quarterly Operating Profit: KRW12.7 billion in Q4.

Quarterly Deficit for POSCO EMC: KRW190 billion.

Deficit from PCSS Divestment: KRW131.9 billion.

Sales Volume: Decreased by 6% quarter-on-quarter.

Production Adjustment: 4% reduction due to maintenance.

CapEx: KRW7 trillion, down from KRW9 trillion in 2024.

Operating Margin Ratio for POSCO: 5.1%.

Overseas Steel Deficit in Q4: KRW135.9 billion.

Cash Generated from Restructuring: KRW1.1 trillion in 2025, cumulative KRW1.8 trillion since 2024.

Release Date: January 29, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

POSCO Holdings Inc (NYSE:PKX) plans to expand its overseas steel operations, with strategic partnerships and joint ventures in the US and India, which could enhance its global market presence.

The company’s lithium operations in Argentina are expected to begin commercial production, potentially boosting profits as lithium prices recover.

POSCO Holdings Inc (NYSE:PKX) is focusing on high-margin products in the domestic market, which could improve profitability.

The expansion of the infrastructure business, including investments in gas production and palm oil farms, is expected to contribute positively to the company’s financial performance.

The company is actively restructuring underperforming businesses, which could lead to improved financial results in the future.

Negative Points

POSCO Holdings Inc (NYSE:PKX) experienced a 5% decline in consolidated revenues and a 16% drop in operating profit in 2025, indicating financial challenges.

The company faced significant one-time costs due to construction halts and employee compensation related to divestments, impacting profitability.

Domestic steel demand remains stagnant, and global trade tensions, including tariff wars, pose ongoing challenges.

The weakening won currency is increasing costs, and there is a risk of lithium price fluctuations affecting profitability.

Safety incidents increased within the group, necessitating enhanced safety measures and potentially increasing related costs.

Q & A Highlights

Q: What is the outlook for the steel market, particularly in automotive and shipbuilding sectors, and when will POSCO’s market share increase? A: The steel market will see regional differences. China will likely experience negative growth due to a recession in its real estate market, while Europe and the US are expected to recover. Emerging economies like India and ASEAN countries will see strong demand increases. POSCO plans to increase selling prices by March or April, with impacts visible in the second quarter.

Story Continues

Q: How do you forecast lithium prices for the rest of the year, and what are the prospects for Argentina’s Salt Lake and Hard Rock Lithium? A: Lithium prices are expected to remain similar to current levels, around $20,000. Argentina’s Salt Lake and Hard Rock Lithium are ramping up, with commercial production expected this year. However, initial profits may be limited due to low-priced agreements and supply issues.

Q: What is POSCO’s position on the HMM acquisition, and are there any updates? A: The HMM acquisition is still in the preliminary review stage, with no specific decisions made. There has been no progress since the last update.

Q: What are the business plans for POSCO International and ENC, and how do you expect the RBM business to perform this year? A: POSCO International expects improved performance due to palm oil acquisition and Cenex gas field expansion. The RBM business is expected to perform well, with significant improvements in operating profits anticipated, especially from POSCO Argentina.

Q: How will EU’s CBAM and other global export regulations impact POSCO, and what are the response measures? A: POSCO is negotiating with EU commissions regarding national quotas and plans to shift low-priced products to other markets. The focus will be on premium products overseas to maintain similar sales levels as last year.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.