POSCO Holdings (005490)

POSCO Holdings, established in 1968 as Pohang Iron and Steel Co., Ltd., transitioned to a holding company structure in 2022. It is a leading South Korean steel company and a global business leader. Its main business areas can be divided into steel, secondary battery materials, and infrastructure (including trading, construction, energy, ICT, and mobility). Key products and services include high-quality steel products, secondary battery materials such as lithium, cathodes, and anodes, and infrastructure businesses like energy, resources, trading, and construction. According to its 2025 business report, revenue breakdown is as follows: steel segment 38%, infrastructure (trading) 14%, infrastructure (construction) 6%, infrastructure (logistics, etc.) 1%, and secondary battery materials segment 3%. Its major customers span various industries such as automotive, shipbuilding, and construction, to which it supplies essential materials. It is also building a global supply chain in the secondary battery materials market. POSCO Holdings possesses unparalleled competitiveness in steel, having been selected as the world's most competitive steelmaker for 15 consecutive years by WSD (World Steel Dynamics), a global steel analysis firm. Furthermore, Gwangyang Steelworks is the world's largest single steel mill by crude steel production capacity. To lead the eco-friendly steel era, the company is developing its unique hydrogen reduction steelmaking process (HyREX) technology, which significantly reduces carbon emissions using hydrogen. In addition, it is pursuing business diversification by establishing an integrated value chain for battery materials, including lithium, with the secondary battery materials business as its future core growth engine. Looking at POSCO Holdings' recent annual performance, revenue showed a downward trend, decreasing by approximately 18.5% from KRW 84.7502 trillion in 2022 to KRW 69.0949 trillion in 2025. Operating income significantly decreased by approximately 62.4% from KRW 4.8501 trillion in 2022 to KRW 1.8271 trillion in 2025. Net income also decreased by approximately 85.8% from KRW 3.5605 trillion in 2022 to KRW 504.4 billion in 2025. Operating profit margin continuously declined from 5.72% in 2022 to 2.64% in 2025, indicating deteriorating profitability. Notably, quarterly performance showed significant volatility, with Q3 2025 revenue recording KRW -294.5 billion and operating income KRW 31.6 billion. Examining POSCO Holdings' financial soundness, its debt-to-equity ratio has remained relatively stable, from 68.92% in 2022 to 68.64% in 2025. The current ratio slightly decreased from 205.49% in 2022 to 187.98% in 2025, but it still exceeds 100%, indicating sound short-term debt repayment capability. However, ROE (Return on Equity) continuously declined from 6.11% in 2022 to 0.81% in 2025, indicating a deterioration in its ability to generate profit from shareholders' equity. POSCO Holdings is focusing on the carbon-neutral transition of its steel business and the growth of its secondary battery materials business through its '2Core+New Engine' strategy. Specifically, the company anticipates a rebound in profitability for the secondary battery materials segment through the acquisition of lithium mine stakes and the commencement of commercial production. The lithium segment is projected to turn profitable in Q2 2026. Furthermore, it is pursuing efficient capital management through overseas steel joint ventures and restructuring, seeking sustainable growth.