POSCO Holdings (005490.KS) reported first-quarter operating profit of 707 billion won. The company also introduced a shareholder return policy targeting a payout ratio of up to 40% for 2026 through 2028.
POSCO Holdings posted consolidated first-quarter revenue of 17.876 trillion won, operating profit of 707 billion won, and net profit of 543 billion won, the company said in a regulatory filing Wednesday.
Revenue rose 2.5% and operating profit climbed 24.3% from a year earlier. The strong results came as the commercial production startup of POSCO Argentina sharply narrowed losses in the lithium business, amid uncertainty in energy supply chains and financial markets caused by tensions in the Middle East. POSCO Argentina recorded its first monthly profit in March and is expected to post its first quarterly profit in the second quarter.
In the steel division, sales volume increased, but individual profit declined due to the burden of raw material costs amid a rising exchange rate. However, overall profit in the steel division grew on the back of expanded sales at overseas steel subsidiaries and cost reductions.
POSCO Future M (003670), the battery materials division, swung to profit, driven by expanded cathode material sales in new markets and increased sales of high-value-added products. POSCO Argentina and POSCO Pilbara Lithium Solution narrowed their losses on higher production volumes and rising lithium prices. POSCO HY Clean Metal recorded its first quarterly operating profit by maintaining maximum operating speed and cutting costs.
POSCO International (047050), the infrastructure division, posted solid profit on strong liquefied natural gas (LNG) sales. POSCO E&C succeeded in turning to profit as one-off costs were resolved.
POSCO Holdings also announced its medium-term shareholder return policy for 2026 through 2028. Previously, POSCO Holdings had implemented a dividend policy based on free cash flow, drawing on remaining funds after three years of investment. In addition, starting this year, the company will introduce a performance-linked shareholder return policy based on adjusted controlling-interest net profit, taking into account future growth investments in areas such as steel and energy materials.
Adjusted controlling-interest net profit refers to profit calculated by excluding non-operating and one-off valuation gains and losses from the portion of net profit on the consolidated financial statements attributable to the parent company's shareholders.
POSCO Holdings presented a payout ratio of 35% to 40%. The company plans to enhance dividend stability by excluding valuation gains and losses that are unrelated to operating performance or that arise on a one-off basis. It also seeks continued growth in shareholder value by combining future-value investments with stable dividends and new share buybacks and cancellations.
POSCO Holdings is also pursuing investments to localize its steel business in a complete form and to drive a low-carbon transition. On the 20th, POSCO Holdings signed a joint venture agreement (JVA) with India's top steelmaker JSW Steel, establishing an integrated production system with 6 million tons of crude steel capacity in India. Through this, the company plans to secure a stable revenue base in India, a rapidly growing market.
Domestically, POSCO Holdings became able to develop a site for hydrogen-based steelmaking following the Ministry of Land, Infrastructure and Transport's approval of changes to the plan for the Pohang national industrial complex. The company plans to operate a new electric arc furnace in Gwangyang with annual capacity of 2.5 million tons in June this year.
