POSCO Holdings said in a regulatory filing on Wednesday that it posted first-quarter consolidated revenue of 17.876 trillion won, operating profit of 707 billion won and net profit of 543 billion won.
The company said revenue and profit rose from a year earlier despite heightened uncertainty in energy supply chains and financial markets stemming from the war between the United States and Iran. It said losses in its lithium business narrowed sharply as POSCO Argentina began full-scale commercial production.
In steel, POSCO said profit fell even as sales volume increased, citing higher raw material costs driven by a weaker currency. It said overall steel-segment profit increased on stronger sales at overseas steel units and cost cuts.
In battery materials, POSCO Future M returned to profit on expanded sales of cathode materials in new markets and higher sales of value-added products. POSCO Argentina and POSCO Pilbara Lithium Solution also reduced losses on higher output and rising lithium prices, the company said.
POSCO Argentina recorded its first monthly profit in March as output and selling prices continued to rise, and the company said it expects its first quarterly profit in the second quarter. POSCO HY Clean Metal posted its first quarterly operating profit on sustained high utilization and cost reductions, it said.
In infrastructure, POSCO International maintained solid profit on broadly strong sales across its businesses including gas and energy, the company said. POSCO E&C returned to profit as one-off costs were resolved.
POSCO Holdings also announced a midterm shareholder return policy for 2026 through 2028. It said it previously paid dividends based on free cash flow after investments, but will adopt a performance-linked policy based on adjusted controlling net income starting this year, reflecting plans for intensive investment in future growth areas such as steel and energy materials.
The company set a shareholder return ratio of 35% to 40% and said it will adjust valuation gains and losses that are unrelated to operating performance or are one-time items to support dividend stability. It said it plans to balance investment for future growth with stable dividends and new share buybacks and cancellations.
POSCO Holdings also outlined progress on its “complete localization” strategy for steel and investment tied to its decarbonization transition, which Chairman Chang In-hwa highlighted in a New Year’s address.
The company said it signed a joint venture agreement on the 20th with India’s top steelmaker, JSW Steel, and plans to build an integrated production system in India with crude steel capacity of 6 million tons to secure a stable profit base in a growth market.
In South Korea, it said a March approval by the Ministry of Land, Infrastructure and Transport to change plans for the Pohang National Industrial Complex made it possible to prepare a site for hydrogen-based steelmaking, known as HyREX. It also said it will start operating a new electric arc furnace in Gwangyang with annual capacity of 2.5 million tons in June, and will use profits generated in global markets to fund domestic decarbonization investments while strengthening mid- to long-term competitiveness.
* This article has been translated by AI.
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