POSCO Holdings (005490.KS) posted an earnings surprise in the second quarter, driven by a return to profitability in its battery materials business and strong performance in infrastructure.
POSCO Holdings said on the 30th that it recorded consolidated revenue of 19.259 trillion won and operating profit of 819 billion won in the second quarter. The figures represent increases of 9.7% and 34.9%, respectively, from a year earlier, exceeding market estimates of 18 trillion won in revenue and 729.9 billion won in operating profit.
By business, growth in the battery materials division stood out. Combined divisional revenue rose 37.7% to 1.052 trillion won, while operating profit reached 41 billion won, swinging to a profit from a loss of 144 billion won a year earlier and a loss of 7 billion won in the previous quarter. POSCO Future M (003670.KS) posted operating profit of 27 billion won, a significant improvement from 1 billion won a year earlier, helped by inventory valuation effects for cathode materials and a recovery in sales volume among major anode material customers.
Tangible results also emerged in the lithium division. POSCO Argentina posted operating profit of 11 billion won, based on the operational stabilization of its brine lithium plant No. 1 and facility improvements. This marked its first quarterly turnaround to profit, breaking away from a loss of 58 billion won a year earlier and a loss of 18 billion won in the previous quarter. In the second half, initial operating costs are expected to rise with the completion of plant No. 2, but the company plans to improve profitability through phased production increases and expanded sales.
The infrastructure division recorded revenue of 15.466 trillion won and operating profit of 493 billion won, up 15.9% and 108%, respectively. In particular, POSCO International (047050.KS) posted its highest-ever quarterly operating profit of 429 billion won, driven by growth in its Myanmar and Australia gas fields and its Indonesia palm business. POSCO E&C swung to a profit of 4.4 billion won this year from a loss of 91 billion won in the second quarter of last year, on improved earnings in its construction business.
The steel business (combined POSCO and overseas steel) was disappointing. Unlike overseas steel operations, which saw improved profitability, POSCO's standalone operating profit fell 46.6% from the second quarter of last year to 274 billion won, affected by rising raw material prices and oil prices. However, results improved from the first quarter of this year (213 billion won) on higher selling prices and expanded sales volume.
Meanwhile, regarding the restructuring plan it has been implementing since 2024, POSCO Holdings raised its target from the previous goal of "completing 128 cases by 2027 (generating 2.8 trillion won in cash)" to "completing 129 cases by 2028 (generating 3.5 trillion won in cash)." In the first half of this year, the company carried out 12 restructuring cases and secured approximately 480 billion won in cash. On a cumulative basis, it has completed 85 cases, generating a total of 2.2 trillion won in cash.
