PKX

Image source: The Motley Fool. Thursday, July 30, 2026 at 2:00 a.m. ET Head of Finance and IR Division - Kim Seung-Jun IR Office Head - Young-Ah Han Marketing Office Chief - Nho Song Mae International Trade Affairs Office - [Unnamed] Energy Materials Business Management Office - Il Tae Yoon Infrastructure Business Management Office - Kim Min-su Energy Materials Business Development Office - Mi Seung-won Marketing Strategy Office - [Unnamed] Operator: Greetings, everyone. Thank you for coming to attend the conference call for POSCO Holdings earnings release. Today, we will have a presentation from POSCO Holdings first, and then we will have a Q&A with all of you. [Operator Instructions] So now I'd like to begin the POSCO Holdings 2026 Second Quarter Earnings Release. Seung-Jun Kim: Greetings, everyone. I'm Head of Finance and IR Division at POSCO Holdings. My name is Kim Seung-Jun. Despite the harsh heat, thank you for attending the second quarter earnings for POSCO Holdings. My sincere thanks go to the investors and the analysts. In the second quarter, the Middle East conflict triggered energy supply risk intensified, while the Korean won continued to lose value, business faced headwinds. Nevertheless, POSCO Holdings recorded consolidated revenue of KRW 19.3 trillion and KRW 820 billion in OP, keeping the rising profit curve. Gains were recorded against previous quarter in all key sectors of steel, rechargeable battery materials and energy. Most notable is our Argentina lithium business that turned a first-ever quarterly profit. So the general RBM sector transitioned to a surplus for the first time in 9 quarters. Our steelmaking affiliate, POSCO registered its separate OP of KRW 270 billion, a KRW 60 billion gain over the previous quarter. On third quarter outlook, what is most notable is that POSCO will make more visible performance gains. While some raw material costs will climb, increased production will offset fixed costs. Through effort made to increase sales and sales price, we expect the rise to continue. In the rechargeable battery materials sector, following its first ever quarterly surplus in the second quarter, a temporary slowdown may be observed in the third quarter. Located in the Southern Hemisphere, it is winter in Argentina. This seasonal factor causes pond evaporation to dwindle. By leveraging this off-season, we plan to replace the LP dryer equipment. Hence, a temporary drop in production volume seems inevitable. Starting in the fourth quarter, however, the plant will run at full operation. Additionally, in Q4, long-term supply agreement will kick in, allowing us to deliver certified products. Therefore, we anticipate a more meaningful level up in Q4. Besides the performance gains, the first half of this year demonstrated marked progress in building for future growth. One is Gwangyang's first EAF operation and the other the HyREX demo plant construction start. POSCO Holdings is committed to upholding the 2 pillars of growth, which are profit enhancement by sector and strategic investment for future growth. We'll do our best to continue to grow our corporate value. Now I will give the floor to our IR Office Head to offer more second quarter details. Young-Ah Han: Next, we will move on to Page 3 of the materials, and I will brief you on the business performance of the second quarter 2026. The consolidated revenue of the second quarter was KRW 19.3 trillion, which is a KRW 1.4 trillion increase on quarter. The operating profit stood at KRW 819 billion, a 16% increase on quarter. The quarterly EBITDA stood at KRW 1.9 trillion and CapEx of KRW 2 trillion was administered this quarter, totaling KRW 3.7 trillion of CapEx for the first half. Now let me elaborate by business. First, Steel business profits improved on quarter by KRW 58 billion. The Middle East conflict impacted logistics and energy costs and foreign exchange rate driving up short-term cost volatility. However, production and sales volume growth and partial price increase offset the headwinds that lowered profits at the end of last year to drive recovery. The RBM business had for the past 8 consecutive quarters operated in the red. However, this quarter, we recorded operating profit of KRW 41 billion swinging to an operating surplus. Until last year, there was a quarterly deficit of around KRW 50 billion at POSCO Argentina. But this quarter, the subsidiary swung to an operating profit. In infrastructure, highest recording quarterly profit was recorded by POSCO International, driving a profit growth of 22% on quarter. The divestment of PZSS and Chinese subsidiaries are now complete, registering one-off divestment profit for this quarter's net profit. Next, I'd like to report on our safety index. Every year and every half year, POSCO Holdings transparently releases updates on our safety metrics and progress made on our policies. In June, we suffered another fatality at POSCO E&C, our construction affiliate. The company takes this very seriously. They are putting all efforts into inspecting and strengthening their safety management system. POSCO Safety Solution in collaboration with dss+, a global safety solution provider, we are assessing the safety of 33 group affiliates across 4 key areas. By October, we plan to sort safety risks and identify corrective action plans. You can find more detail on our safety initiatives on Page 4. Now Page 5, the key business activities in the second quarter. With Australia-based Mineral Resources, we signed the investment agreement on April 30. The JV is planned to be established by October. For Lithium DLE demonstration, we are working with Anson Resources. The demo plant cooperation contract was signed in June, and the plant is scheduled to come online in 2027. POSCO Future M's LFP CAM business is in motion. First, we have Future M's Pohang NCM CAM lines that are being recalibrated for LFP production with plans to be commercially ready by next January. Future M, Fino and CNGR's JV, CNP New Materials began construction of a new LFP plant to begin commercial production by the end of 2027. Next, Page 6. POSCO Holdings has 100% share of POSCO Air Solutions, whose high-purity rare gas plant was completed in June -- on June 17 in Gwangyang. To generate profit, it requires certification processes, which will take time. But by using materials from the steelworks oxygen plant, it can meet some of the rare gas demand for the chip industry with good prospects for profit. At POSCO International, rare earth agreement business partnership was signed with the U.S.-based ReElement Technologies last May. Total project cost is estimated at $200 million for commercial production by 2028. POSCO's 2.5 million tonne EAF was completed by June. In its early operation stage, we plan to mix molten iron from the blast furnace and EAF to produce general purpose steel. At the same time, we will continue testing and development to produce high-grade steel. We aim to boost quality to the level of blast furnace-based products, developing refining and rolling technologies to ultimately produce automotive and electrical steel, which will help us -- this will help us respond to CBAM and other environmental regulations. Next page is on updates about our restructuring projects. In the first half of this year, there were 12 restructuring projects that generated KRW 475.4 billion in additional cash. The largest impact was from divesting steel operations in China that made the bulk of our losses. They include PZSS, QPSS and STS processing center. Our restructuring effort targets underperforming businesses and noncore projects. By selling these assets, we seek to improve long-term performance and enhance our capital efficiency. By '28, we expect to generate KRW 3.5 trillion of STS resulting from these projects. Next, let's discuss earnings by each division. POSCO recorded operating profit of KRW 274 billion in the second quarter, representing an increase of KRW 61 billion compared with the previous quarter. While profitability improved quarter-over-quarter, the operating margin remained at 2.9%, which is still below our historical average. Both crude steel production and product sales increased from the previous quarter, demonstrating a relatively stable operating performance. However, profitability was affected by higher costs. Key raw material costs rose by approximately 6% quarter-over-quarter, while increases in oil prices, foreign exchange rates, logistics expenses and maintenance costs also placed additional pressure on earnings. Nevertheless, the average selling price of carbon steel products increased from KRW 920,000 per tonne in the first quarter to KRW 962,000 per tonne in the second quarter. This price improvement helped partially offset the increase in raw material costs. Looking ahead to the third quarter, operations have stabilized following the completion of the major hot rolling mill overhaul and no significant maintenance shutdowns are currently scheduled. Accordingly, we are targeting crude steel production of approximately 9 million tonnes, which would represent our maximum production level. The domestic steel market, which had experienced deteriorating profitability since 2024, is also showing initial signs of stabilization. As a result, the proportion of domestic sales, which had declined to approximately 51% over the past several years, increased to 55.5% this quarter. Although cost pressures remain elevated, we will continue to mitigate their impact through enhanced production efficiency, ongoing cost reduction initiatives and price negotiations with customers. Taking these factors into consideration, despite the continued uncertainty in the business environment, we expect POSCO's profitability to maintain its quarter-over-quarter improvement in the third quarter. Turning to Page 9. I will now discuss the performance of our overseas steel operations. Overall, the performance of our major overseas subsidiaries remained broadly stable. Although currency depreciation in several markets and weaker export conditions created challenges, we were able to partially offset these pressures through selling price increases and cost reduction measures. Lastly, please note that our Zhangjiagang operation in China was excluded from the consolidated financial statements beginning this quarter following the completion of its divestment. Page 10, POSCO Future M. Second quarter POSCO Future M OP margin rate was 3.9%, a 1.6 percentage point quarterly improvement. Owing to the rise in oil price-linked chemical product sale prices, the impact served as a tailwind for base materials profits. Energy Materials also registered a small profit. Next is Page 11 on our lithium affiliates. At POSCO Argentina, sales volume rose 160% against the previous quarter and revenue by 290%. By registering quarterly OP of KRW 11 billion, this quarter became the first ever since the company was incorporated to achieve operating surplus. Multiple clients have signed supply agreements with us, and we are seeking certification procedures and new clients as well. While this upward trend is projected to continue in the second half, as the CFO already mentioned, on a quarterly basis, we may see some shifts. POSCO Argentina in July is undergoing some interim repairs such as the replacement of the LP dryer. Once completed, we'll bring it back up to full operation in Q4. From Q4 also, the sale of certified products will phase in. Based on market circumstances, uncertified products can be sold at approximately 10% discounted prices. Therefore, once the certified products sales kick in, profits are likely to make additional gains. In the meantime, Plant 2 is an initial operating stage bracing for its full commissioning scheduled in October. In summary, the third quarter may appear to be a slight slowdown. However, in the fourth quarter, Plant 1 will be able to not only offset Plant 2 initial ramp-up costs, it is also expected to outdo its second quarter performance by another notch. POSCO Pilbara Lithium Solutions improved its margins owing to higher price and expanded sale of certified products. Second quarter revenue hit KRW 102 billion, an increase over the previous quarter. Operating losses were also reduced to around KRW 1 billion. As mentioned in the previous quarter, P-PLS margins are highly impacted by the price spread of spodumene and lithium hydroxide. Currently, the price spread is not in our favor, so we face profit pressures in the second half. We will continue to monitor the market and take measures as necessary. POSCO HY Clean Metal maintains plant operations close to 100% despite challenges in acquiring feedstock since December 2025, that has kept up steady monthly profit gains. Again, this is owing to an operational rate of almost 100%. And so it is able to keep up speed even with some headwinds. Page 12, POSCO International. For POSCO International, energy and materials segments both grew, recording the highest quarterly and half year operating profit. In energy, Myanmar gas field saw selling price rise along with higher FX. And the Senex gas field was expanded. And in materials, Indonesian pond production was newly acquired, and this helped improve performance. Page 13, POSCO E&C. POSCO E&C recorded a surplus of KRW 44 billion this quarter. So it wrapped up the first half with operating profit of KRW 97 billion. And once again, this shows recovery from the KRW 452 billion temporary deficit it suffered last year. And this concludes the 2026 second quarter earnings briefing. We will now move on to the Q&A. Operator: [Operator Instructions] The first question comes from Hyundai Motor Insurance. Hyun-wook Park: My name is Park Hyun-Wook. I have 3 questions. The first is regarding second half steel market outlook as well as the direction POSCO will be taking, especially in automotive shipbuilding and home electronics. And how will you negotiate price in the second half of this year? Second question is starting in July, Europe will begin its quota system. So what will be the proportion of sales made to Europe against these trends? And of course, there are some temporary tariffs that are being imposed although temporary, this is something that will apply to hot-rolled products as well. So I wonder what your countermeasures are against these tariffs. And third question is, this was also discussed in the Investor Day conference. For overseas investments as well as repairs that are going on in the steelworks, I think all of these are going to be happening in parallel. But PTKP 1 is not in a good situation. And of course, there are different stories being told about the automotive industry. But looking at the profits, how do you intend to generate profit? Unknown Executive: My name is [ Nho Song Mae ], Marketing Office Chief. So you asked for market outlook for the second half of this year. Due to fuel costs and raw materials costs that went up in the first half, of course, this impacted our prices, but this did also impact our own price. And so we will consider market situations and make sure to apply what needs to be applied to our price. But because of the Iran conflict, there are volatilities in the raw materials costs as well as external variables due to AD. So we will have to continue to closely monitor the client situation as well as the markets and our adjacent markets as well. Rather than take a rapid rise in price, I think we will be more gradual in our measures. Looking at the automotive industry, we are negotiating based on Formula 1. Despite these oil price hikes and other volatilities, a lot of these did not actually -- were not applied to our price. So in the second half, we will gradually phase these variables into the price. And in shipbuilding, this is not based on formula index, but because we have a strong demand, we will continue to adjust and reflect these variables to our final price. In home electronics, we continue to transfer our production base to Southeast or we -- the world continues to transition its production base to Southeast Asia. And so the prices remain very conservative. But there are costs that need to be applied to our final price. Unknown Executive: [indiscernible] ITO, I will answer the second question on EU quota reductions. By bracing against these measures, there are some safeguards that were put in place. And of course, we cannot avoid all impact, but through government negotiations, we are trying to minimize the quota reduction for Korea. And so compared to our competition, we believe we have a much more favorable position. With quota reduced, we will be entering that market with more high-margin products. And through World Steel Association as well as fair trade agreement clauses, we want to be able to keep the European market favorable to us. If there is a reduction or a cut in our sales volume, we will make some transitions to be able to make up for these losses. EU proportion for POSCO will vary by each year, but it's about 10% to 15% of our total exports. Japan, Southeast Asia and Europe make up our key exporting markets. In regards to Japan and the tariffs, as you mentioned, in August last year, we began an investigation and the investigation is still ongoing. So in June of this year, for Korean and Taiwan cold-rolled products, they made parallel -- launched parallel investigation on all products. So these are things that are still ongoing. On coated products AD that was announced on July 24, because there was excessive intervention on the part of the investigating authority, we believe that the AD determined as a result of that assessment is what we are seeing today. So we will be very clearly looking into all of the unfair and irrational reasons for -- apply to these decisions, and we will make sure to make adjustments necessary for our operations. Unknown Executive: POSCO Holdings CEO Management Office, I would like to respond to your question about PTKP in Indonesia. So PTKP Phase 1 is not profitable or the profits are very small. When it initially went into operation, most of the products were plates and semi-finished products, and we were devoid of customers when we began. So in the initial stage, yes, our profits were very slim. But let's look at it in 5-year interim stage intervals. We are currently profitable, and we are able to generate cash flow. That is where we are now. About 90% of total invested CapEx has been recovered through EBITDA margin. And the reason we want to invest in Phase 2 is because this isn't something that came out of the blue. We've had an expansion plan from the very beginning, but we waited until situation would be more favorable because we have improved conditions now, we've been able to add more detail to our expansion plan. Exactly when we will begin to build or construct that has not been determined yet. And Phase 2 is different from Phase 1 because we are targeting the automotive steel sheet market in Southeast Asia. In each Southeast Asian economy, I'm sure they have their own plans to supply their own automotive steel sheets. The hot-rolled products from PTKP is what differs because most of the Southeast Asian nations are producing cold-rolled products. So compared to the competition, ours will be much more profitable. Operator: We will move on to the next question. The next question is from iM Securities, Mr. Kim Yoon Sang. Yoon-sang Kim: I am Kim Yoon Sang from iM Securities. I have 3 questions for you. First is related to lithium. You demonstrated good performance this quarter. And recently, at the Investor Day, you mentioned you gave us guidance for the expected profit for lithium in the next few years. And I would like to ask what is the profitability for brine and hard rock lithium. And if there are any plans to improve profitability, I'd like to hear about them. And the last question related to lithium is the price outlook. Recently, there are about mines and all these various mines -- news of various mines coming from Australia, which have affected the prices. But with the reutilization of these mines, do you expect the price to fall? Or do you not expect it to impact the prices as much? For the second question is related to the rare earth. Also at the Investor Day, you provided some guidance, but what is your plan regarding rare earths? And there, you will need technology and the raw materials to dive into this business. And I would like to ask what is going on with the preparation. The third part is related to steel. And recently, the long products demand has been on the news quite often. It's not one of POSCO's major key products, but I would like to ask your plans regarding this. Yoon Tae-il: I am Il Tae Yoon from Energy Materials Business Management Office. At the Investor Day, we provided long-term outlook, long-term vision. When we provide these visions -- announced these visions, we -- many organizations predict the price to be over $30 (sic) [ $30,000 ]. So for brine lithium we think we can achieve about 80% operating profit. And the second is plans for expansion for Phase 3 and Phase 4, and we have a performance projection for 2035. P-PLS and Argentina Plant 1 will have depreciated by then. And so that's been applied there. And for hard rock lithium, we made an investment in mineral resources. And so that CapEx is applied here. And because some of the mines are coming back into operation, how will that impact our prices? I think that's already been worked into this plan. Of course, you've seen these lithium prices fluctuate wildly in the past. And so those prices and those impacts have been worked into this formula. And this is based on LC. And based on our estimation, this estimates 100,000 tonnes per year production. And this is a large volume equivalent to about 5% of total demand. And because there's a lot of development going on in Australia, looking into the future, lithium price falls have already been worked into our plan. The only thing that we think could change is the price of spodumene, which could drop quite a bit. In Argentina, that is not positive for Argentina. But for the hard rock lithium business, this could be favorable. Unknown Executive: I am [ Kim Min-su ] from Infrastructure Business Management Office. Regarding rare earths, the raw materials, we are reviewing -- sourcing them from Southeast Asia. And from U.S. and Southeast Asia, we are planning for a joint venture. And in the U.S., we are also reviewing another business there. In rare earths, there is the mining, the processing in between and producing permanent magnets and all these sections -- all these links in the value chain require a lot of experience and technology. That's why in order to make sure that the business settles in rapidly or quickly, we are working with experts. And in this process, POSCO International will be working with us in raw materials and other partnerships. And we are also working with partners to create -- to establish JVs to acquire the technology to expand the business. Especially in technology, the important part is the separation and refining. Separation and refining technology needs to be internalized. And for this, we are currently conducting R&D at the POSCO N.EX.T hub, the Research Institute. And with these partnerships, both inside and outside, we will be able to acquire the technology necessary. Unknown Executive: I am [ Nho Song Mae ] from Marketing Strategy Office at POSCO. Regarding the third question, yes, there is a -- there is a lot of demand around data centers, and this is leading to a lot of expectations in society. Regarding the data centers, concrete and metal rods and structural steel used to be the demand in the past. But right now, what we are seeing is the data centers being built at scale. So internally, we think that the structural steel related to thick plates may be more competitive. So regarding data centers and ESS the new demands, we are making various reviews. And to gain an upper hand in the market, we are making plans to make -- take the necessary actions. And going forward, not only the exterior steel products that needed to build buildings, PosMAC, electrical steel and interior steel demand is also expected to increase. So we will systematically address these demands. Operator: Next question is from Heungkuk Investment Securities (sic) [ Korea Investment & Securities ], Choi Moon Sun. Moon Sun Choi: My name is Choi Moon Sun. So this is finally a good result in a long time. I'd like to ask a question about the steel sector. Chinese security firms have reported today that the government has put out a supply policy. Why? Because profitable companies in China, a list of them show that steelmakers take up a very small portion. And so steelmakers continue to suffer in China. And that is the reason why we believe a new supply agreement may come out of the Chinese government. So in association with this piece of news, how do you project the market, the steel market? Unknown Executive: My name is [ Nho Song Mae ], POSCO Marketing Strategy Office. So China has continued to cut production. And I think they've also tried to put in some additional measures to deal with additional demand. So rather than cut production, I think they're going to focus on reducing low-grade steel and replacing them with high-grade premium steel. I think this is what the Chinese government is focused on exercising. POSCO is the same, no different. Because of the construction industry slowdown, we are of course, challenged. But because of other industries that exist in Korea, such as the automotive and shipbuilding industries, we are able to focus more on premium steel. Overseas as well, there are some trade barriers. But despite these headwinds, we are inventing programs to be able to make up for those losses. We're not trying to cut exports anywhere. We want to sell and export as much as possible. That's our position. Operator: The next question is from Meritz Securities. Jae Hyeok Jang: I am Jang Jae Hyeok from Meritz Securities. At the CEO Investor Day, POSCO Argentina Phase 3 and 3.4 and there are also plans to expand hard rock lithium production to 30,000 tonnes. Are there already permits or decisions made on the expansion? If there are -- if the decisions haven't been made yet, when do you expect them to be made? And for hard rock lithium, the background for the business only mentioned partnership with OEM companies. I'd like to ask for more detail. And when you will be able to -- when do you expect to receive the approval for the business? Another question is related to shareholder returns. So you -- so for shareholder returns, you've decided to fix that at 50% and that includes 10% shareholder returns and other percentages for other programs. Do you have a definitive principle for this rule? And you've decided to sell off the equities at your affiliates by the end of the year. How will this fare into shareholder returns? Unknown Executive: Okay. I'm [indiscernible] from Energy Materials Business Development Office. First, you asked about expanding the lithium business. At the Investor Day, we mentioned that the Argentine brine lithium will be increased to 100,000 tons. And there are Phase 3 and Phase 4 for the Argentine Lithium Business. Regarding this expansion, up to now, we have been producing lithium hydroxide for -- as our final product. But for Phase 3 and Phase 4, our goal is to produce lithium carbonate. And the decision has not yet been made. We will be undergoing the PFS, the pre-feasibility study to decide what process will be applied by the end of this year, and the FID will be done by the end of next year. And expanding our lithium business using the hard rock lithium. To answer that question, as you have heard, because the spodumene prices are high, there is a profitability issue. So we will be considering the market conditions, our client positions and as well as our lithium producer partners. Though the decision will be made at the end of next year, we will be responding flexibly. That is our decision. Unknown Executive: So the 10% adjustment ratio, I think you're asking why. Let me try and explain. First of all, as we mentioned, at CEO Investor Day, about a certain percentage of the equity shares that we own at affiliates, we will be selling that off and about 90% will go to CapEx. The other 10% will contribute to shareholder return. And we thought that would generate about KRW 3.5 trillion of cash, and that means about KRW 350 billion will be used for shareholder returns. But once we sell those equities off, we are selling off our controlling shares. And so this can lead to perhaps a decrease in dividend payment as well. Each year, without seeing an increase in operating profits, we simulated what this would mean regarding shareholder returns. So what would happen to that reduction in equity that we have in affiliates, it amounts to about KRW 200 billion. And because we have set aside 35% to 40% of net profit of controlling interest, this means about KRW 80 billion reduction in dividend payment each year. So equity divestment, 10% of that will go into paying dividends and shareholder returns and measuring that against the losses incurred by selling off those equity shares, the simulation shows us that there is a difference that begins to appear -- a disparate that begins to appear in about 4 years. So what are we going to do 4 years down the road? Based on our plant operation experience, it takes about 4 years for any plant to get to full scale operation. So by our estimation, we will have profits from the plants that we are building now. In summary, in 4 years, there will be profits that come from our affiliates as well as profits that come from our lithium business, which one will be bigger between the 2? It boils down to that question. And as we mentioned during Investor Day, when lithium is $20,000 per ton, our OP rate is about 40%. As the holding company, we have the authority to shift our portfolio and to realign our businesses. So from that perspective, 90% of the equity divestment will go into CapEx and 10% to shareholder returns. That is an informed decision that we made. And liquidating or monetizing our equity stake in our affiliates, what is the rationale behind that? Of course, this has to go through the Board and the market is also reacting to this. So at the moment, we are not able to give you a definitive answer. But from our perspective, I think the market is aware and we are aware of the market situation. So once this is approved and it is put into action, we will be very careful. Once we make this decision, we will also follow all rules and regulations. So this will also go through public disclosure. Operator: The next question is from KB Securities. Yong Hyun Choi: I am Hyun Choi Yong from KB Securities. Regarding steel business, I have a question. In the third quarter, you mentioned that it will continue -- it will improve compared to the second quarter. Does this include the cost from the EAF utilization? Does this include the projections regarding Gwangyang operation, the costs associated with it? Of course, it helps to reduce carbon emissions, but this also entails increased costs. So if there is any miss in your business projection, this could be quite fatal. So I wonder how the Gwangyang EAF is going to fare into your business projections in the future. Seung-Jun Kim: I am the Head of Finance Office. First, in the second half of 2026, the projections, of course, includes Gwangyang operations and the costs incurred from the EAF. And the second question is whether the -- well, there was a history -- there is a record of Gwangyang EAF showing low profits. Well, we are implementing a hot metal mixing technique to produce high-end or high-grade steel. This is our plan. And as of now, the utilization rate is low. But once this rate goes up and we can produce high-grade steel, we will be able to secure profitability. Unknown Executive: I am [indiscernible] from the International Trade Affairs Office at POSCO. Let me add a little. From June, we began operation of the EAF to begin production of carbon-reduced steel. However, the carbon-reduced steel market is still in its initial stages. So we are currently focusing on promoting this product to the clients -- potential clients. In particular, there are global OEM companies and energy companies. And for them, we are currently doing a test supply for customer verification to expand potential -- expand our sales. The cost increase due to EAF is something that can be addressed with the creation of a premium market. But right now, there isn't -- the market hasn't developed enough, and there isn't a global standard for it. So we believe that we will be able to make up for the costs. And beginning next year, we will continue to ramp up utilization rate to improve profitability and production volume. Operator: Next is from DB Securities, Ahn Hoe Soo. Hoe Soo Ahn: My name is Ahn Hoe Soo from DB Securities. I'd like to ask a question about lithium. So your process is different from conventional method. I wonder what the margin rate is. And Pilbara Lithium is very much dependent on the price spread of spodumene and lithium hydroxide. So what are the cost and profit implications from -- in the ore lithium business? Unknown Executive: Phase 1 has -- POSCO Argentina Phase 1 and P-PLS Phase 1. Let me address Argentina first. Phase 1 is lithium hydroxide. Phase 2 is TGLC. These are all based on index prices. TGLC is industrial, but the price is the same as PGLC. Our cost is about $3 more than TGLC. So it's profitable. Once Phase 1 or Phase 2 completes, then our profitability is going to only get better. And in Phase 2, we have a new process, yes, but this is a pretty widely used process. In Chile and Argentina, there is a standard profit structure that we are envisioning, projecting, and I don't think it's going to be too hard to achieve that. Whether the process is going to impact profitability, I don't think that's the variable we should be looking at. It's actually the demand for ESS that is impacting our profitability. In ore lithium, as already mentioned, the price of spodumene, how much of the price of spodumene takes up the price of lithium hydroxide. That is the question. It should be between 4% to 5%. Let's say it's 5% and because the yield is about 85%, about 7x that is the raw materials cost. And so it ends up being about 35% of the total price being the cost of the raw materials. This is standard in the industry, and it was this way until a certain point in time, but this has come up to about 56%. The raw materials cost was as high as 56%. Why is Pilbara having such a hard time this year? It's because it's gone up to about 70%. Even China is not profitable. When China says it is profitable, they are taking away certain parts in that cost structure. So at this price, no company can be profitable. This is the frank truth. Our current profit structure is dependent on whether large-scale massive mines begin -- rebegin operation and/or if Australia develops new and more mines. So these are some of the predictions that some expert agencies are making. If this pans out, then we will be profitable, and we will be able to increase our production, of course, in consultation with our automotive OEMs and client OEMs. Operator: The next question is from Shinhan Investment Securities. SeungHun Han: I am SeungHun Han from Shinhan Investment Securities. In China, there are -- people are saying that they will make sodium batteries commercially available by next year. And I'm curious if POSCO is also making efforts in that direction. Unknown Executive: I'm [ Mi Seung-won ] from Energy Materials Business Development Office. Yes, SIB, sodium-ion batteries have been quite craze. But as you would probably know, the outlook is different for each organization. Some do look very optimistically, some are taking a very conservative projection. Regarding sodium-ion batteries, we are considering the outlook and the uncertainties, and we are working closely with our partners to -- for research and development. We can't give you -- we can't talk about this in detail, but we will -- we do have plans to launch CAM and AAM alongside our customers' plans. And regarding the anodes, we have a list to -- we have an agenda to continue R&D. Seung-Jun Kim: Do you have any additional questions? It doesn't appear that we have any more. It's almost 1:00 here. And Barclays and DKAM have given us online questions. I took a brief look, and it looks like we've answered most of them, but some parts remain unanswered. I wonder if we at the IR Office could reach out to you with that -- answer to that question. So I'd like to close the earnings release meeting today. Thank you, everyone. [Statements in English on this transcript were spoken by an interpreter present on the live call.] Before you buy stock in POSCO, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and POSCO wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $397,405!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,344,091!* Now, it’s worth noting Stock Advisor’s total average return is 953% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 7, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. POSCO (PKX) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. POSCO Holdings Inc (NYSE:PKX) recorded consolidated revenue of $19.3 trillion and $820 billion in operating profit, maintaining a rising profit curve. The rechargeable battery materials sector turned to a surplus for the first time in nine quarters, driven by the Argentina lithium business achieving its first-ever quarterly profit. Steel-making affiliate POSCO saw a $60 billion gain in operating profit over the previous quarter, driven by increased production and sales volume. POSCO International recorded its highest quarterly operating profit, driven by growth in energy and materials segments. Restructuring efforts generated 475.4 billion won in additional cash in the first half, with plans to generate 3.5 trillion won in free cash flow by 2028. The Middle East conflict triggered energy supply risks and a weakening Korean won, creating business headwinds. A fatality occurred at POSCO ENC, highlighting ongoing safety management challenges. The third quarter may see a temporary slowdown in the rechargeable battery materials sector due to seasonal factors and equipment repairs in Argentina. POSCO Pilbara Lithium Solution faces profit pressures in the second half due to unfavorable price spreads between spodumene and lithium hydroxide. European quota reductions and anti-dumping tariffs on steel products pose risks to export volumes and profitability. Here are the key highlights from the POSCO Holdings Inc (NYSE:PKX) Q2 2026 earnings call, focusing on the most significant Q&A exchanges. Warning! GuruFocus has detected 6 Warning Signs with PKX. Is PKX fairly valued? Test your thesis with our free DCF calculator. Q: Regarding the lithium business, you demonstrated good performance this quarter. What is the profitability outlook for brine versus hard rock lithium, and what are your plans to improve it? Also, given recent news about mines restarting in Australia, what is your price outlook for lithium? A: (Yideyeong, Energy Materials Business Management Office) For brine lithium, we believe we can achieve about an 80% operating margin. Regarding the long-term outlook, many organizations predict the price to be over $30. We have expansion plans for Phase 3 and Phase 4 with performance projections for 2035. Q: What is the second-half steel market outlook, especially for automotive, shipbuilding, and home electronics? How will you negotiate prices in the second half? A: (Nho Song Mae, Marketing Office Chief) Due to rising fuel and raw material costs, we will consider market situations and apply necessary price adjustments gradually rather than rapidly. In automotive, we are negotiating based on a formula and will phase in cost variables in the second half. In shipbuilding, strong demand allows us to adjust prices. In home electronics, production bases are shifting to Southeast Asia, keeping prices conservative, but we need to apply costs to final prices. Q: Starting in July, Europe will begin its quota system. What will be the proportion of sales to Europe, and what are your countermeasures against tariffs, including the temporary ones on hot-rolled products? A: (ITO Head) We are trying to minimize the quota reduction for Korea through government negotiations, giving us a more favorable position than competitors. With reduced quotas, we will focus on high-margin products for the European market. The EU proportion for POSCO is about 10% to 15% of total exports. Regarding the AD investigation on cold-rolled products, we believe the recent determination was due to excessive intervention by the investigating authority, and we will look into the unfair and irrational reasons to make necessary operational adjustments. Q: Regarding the PTKP Phase 1 in Indonesia, it is not in a good situation. How do you intend to generate profit, especially with overseas investments and steelworks repairs happening in parallel? A: (Householdings at CO Management Office) PTKP Phase 1 is currently profitable and generating cash flow, with about 90% of total invested CapEx recovered through EBITDA. The Phase 2 expansion plan is not new; we waited for more favorable conditions. Phase 2 targets the automotive steel sheet market in Southeast Asia, and because it will produce hot-rolled products (unlike competitors' cold-rolled products), it is expected to be much more profitable. Q: At the Investor Day, you provided guidance for rare earths. What is your plan, and what is the status of technology and raw material preparation? A: (Yideyeong, Energy Materials Business Management Office) At the Investor Day, we provided a long-term vision for the rare earth business. We are working on securing the necessary technology and raw materials to dive into this business. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

POSCO (NYSE:PKX) Holdings reported higher second-quarter earnings as profit improved across its steel, rechargeable battery materials and energy businesses, while its Argentina lithium operation posted its first quarterly operating profit. The company recorded consolidated revenue of KRW 19.3 trillion in the second quarter of 2026, up KRW 1.4 trillion from the prior quarter. Operating profit rose 16% sequentially to KRW 819 billion, while quarterly EBITDA totaled KRW 1.9 trillion. Capital expenditures were KRW 2 trillion during the quarter and KRW 3.7 trillion for the first half. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now Seung-Jun Kim, head of Finance and IR at POSCO Holdings, said the results were achieved despite energy-supply risks associated with the Middle East conflict and continued weakness in the Korean won. He said profit increased from the prior quarter in each of the company’s major steel, rechargeable battery materials and energy segments. POSCO’s steel business increased profit by KRW 58 billion from the prior quarter. The company said rising logistics and energy costs, exchange-rate movements and raw-material volatility created headwinds, but higher production and sales volumes, along with partial price increases, supported a recovery. → 3 Value ETFs to Consider as Growth Stocks Lag Behind POSCO, the company’s steelmaking affiliate, reported separate operating profit of KRW 270 billion, up KRW 60 billion sequentially. Management expects steel performance to improve further in the third quarter as increased production offsets fixed costs and the company pursues higher sales volumes and prices. Roh Sung-rae, chief of the Marketing Office, said the company expects to take a gradual approach to price adjustments in the second half. In automotive steel, POSCO is negotiating under formula-based pricing and plans to phase in the effects of oil-price movements and other volatility. In shipbuilding, where demand remains strong, the company plans to continue reflecting cost variables in prices. Home-appliance steel pricing remains more conservative as production shifts toward Southeast Asia, he said. → 5 AI Stocks Are Pulling Back—Which Growth Catalysts Still Look Strongest? On European trade conditions, the company said Europe accounts for roughly 10% to 15% of POSCO’s total exports, depending on the year. POSCO said it is working through government discussions to minimize the impact of quota reductions and plans to focus on higher-margin products in Europe. It also said it would shift volumes to other markets if necessary. The company completed its 2.5 million-ton electric arc furnace, or EAF, in Gwangyang in June. During the early operating period, it plans to blend molten iron from blast furnaces and the EAF to make general-purpose steel, while continuing development work on higher-grade products, including automotive and electrical steel. POSCO said the facility is intended to help address European carbon-border and environmental regulations. Management said the EAF’s cost is included in its second-half business outlook. The company is testing supplies of carbon-reduced steel with global original equipment manufacturers and energy companies, and expects that a premium market for such products can help offset higher costs. It said profitability should improve as utilization rises and production of higher-grade products expands. The rechargeable battery materials business returned to an operating surplus for the first time in nine quarters, reporting operating profit of KRW 41 billion. POSCO Argentina recorded operating profit of KRW 11 billion, its first quarterly profit since incorporation, as sales volume climbed 160% from the first quarter and revenue rose 290%. POSCO expects a temporary slowdown in Argentina during the third quarter because winter conditions in the Southern Hemisphere reduce pond evaporation and the company is replacing LP dryer equipment. Plant 1 is expected to resume full operation in the fourth quarter, when sales of certified products are also expected to begin. Management said uncertified products may be sold at about a 10% discount, making certification an important potential driver of profitability. Plant 2 in Argentina is in its initial operating stage and is scheduled for full commissioning in October. The company said Plant 1 should be able to offset initial ramp-up costs at Plant 2 in the fourth quarter and potentially exceed its second-quarter performance. POSCO Pilbara Lithium Solution increased revenue to KRW 102 billion and reduced its operating loss to about KRW 1 billion. However, management said its margins remain sensitive to the price spread between spodumene and lithium hydroxide, which is currently unfavorable. The company said it will monitor market conditions and respond as needed. POSCO is also evaluating further lithium expansion. Management said it plans to conduct a pre-feasibility study for Argentina phases three and four by the end of 2026 and expects a final investment decision by the end of 2027. Those phases would target lithium carbonate production rather than lithium hydroxide. POSCO International delivered its highest quarterly and first-half operating profit, with profit up 22% from the prior quarter. Higher selling prices and favorable foreign exchange in Myanmar gas fields, expansion of the Senex gas field, and newly acquired Indonesian palm production supported the results. POSCO E&C reported operating profit of KRW 44 billion for the second quarter and KRW 97 billion for the first half, recovering from a KRW 452 billion temporary loss last year. The company said 12 restructuring projects completed during the first half generated KRW 475.4 billion in additional cash. These actions included divestments of Chinese steel operations, including POSCO-CSPC, QPSS and the FCS processing center. POSCO Holdings expects restructuring initiatives to generate KRW 3.5 trillion in free cash flow by 2028. Management also addressed a fatality at construction affiliate POSCO E&C in June. The company said it is strengthening safety management and, with safety adviser dss+, is assessing safety risks across 33 group affiliates. It plans to identify risks and corrective action plans by October. POSCO (NYSE: PKX) is a South Korea–based integrated steel producer founded in 1968 as Pohang Iron and Steel Company. Headquartered in Pohang, the company grew rapidly as part of South Korea's industrialization program and developed large, integrated steelworks—most notably in Pohang and Gwangyang—that helped establish POSCO among the world's largest steelmakers. It is structured as a diversified industrial group with steelmaking at its core and a range of downstream and trading businesses. The company's primary activities include ironmaking and steelmaking, producing a wide array of steel products such as hot-rolled and cold-rolled sheets, coated steels, plates, stainless and special steels, long products (bars and wire rods), and seamless pipes. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "POSCO Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO, OR TO ANY PERSON LOCATED AND/OR RESIDENT IN ANY JURISDICTION WHERE IT IS UNLAWFUL TO DISTRIBUTE THIS ANNOUNCEMENT. THIS ANNOUNCEMENT RELATES TO THE DISCLOSURE OF INFORMATION THAT QUALIFIED OR MAY HAVE QUALIFIED AS INSIDE INFORMATION WITHIN THE MEANING OF ARTICLE 7(1) OF THE MARKET ABUSE REGULATION (EU) 596/2014 (AS AMENDED) SEOUL, South Korea, July 29, 2026 /PRNewswire/ -- POSCO, a corporation organized under the laws of the Republic of Korea (the "Offeror"), announces the final tender results of its previously announced cash tender offer (the "Offer") for up to US$400,000,0000 of its validly tendered (and not validly withdrawn) notes set forth in the table below (the "Notes") issued by the Offeror, from the Noteholders. The Offer commenced on June 30, 2026 and was made pursuant to an Offer to Purchase dated June 30, 2026 (the "Offer to Purchase"). Capitalized terms used but not defined herein have the meanings assigned to them in the Offer to Purchase. On July 15, 2026, the Offeror issued a press release announcing the Early Tender Offer Consideration and the Tender Offer Consideration payable in connection with the Offer. The Offer expired at the Expiration Deadline. The following table summarizes certain information regarding the Notes that were validly tendered and not validly withdrawn in the Offer as of 5:00 p.m. New York City time, on July 29, 2026 (the "Expiration Deadline"). Withdrawal rights for the Offer expired at 5:00 p.m. New York City time, on July 14, 2026 (the "Withdrawal Deadline"), and, accordingly, any Notes that were validly tendered in the Offer may no longer be withdrawn, except where additional withdrawal rights are required by law. Of the US$1,000,000,000 aggregate principal amount of Notes referred to above, US$358,232,000 aggregate principal amount was validly tendered at or before the Early Tender Deadline and was accepted for purchase by the Offeror and cancelled on the Early Settlement Date (July 20, 2026), and US$800,000 aggregate principal amount was validly tendered during the Late Tender Period and will be accepted for purchase in full by the Offeror and cancelled on the Final Settlement Date. The Tender Offer Consideration is equal to the Early Tender Offer Consideration minus the Early Tender Premium of US$50 per US$1,000 principal amount of Notes. Noteholders who tendered Notes after the Early Tender Deadline will NOT receive the Early Tender Offer Consideration and will ONLY be eligible to receive the Tender Offer Consideration (which is equal to the Early Tender Offer Consideration minus the Early Tender Premium of US$50 per US$1,000 principal amount of Notes). Price Determination Date The determination of the Early Tender Offer Consideration and Tender Offer Consideration was made at 10:00 a.m. (New York City time) on July 15, 2026, the business day after the Early Tender Deadline. In addition to the Early Tender Offer Consideration or Tender Offer Consideration, as applicable, the Offeror paid or will pay, as applicable, accrued and unpaid interest on Notes purchased pursuant to the Offer up to, but not including, the Early Settlement Date or the Final Settlement Date, as applicable. For the avoidance of doubt, interest will cease to accrue after the applicable settlement date for Notes accepted for purchase pursuant to the Offer. Settlement The Final Settlement Date is expected to be July 31, 2026. On the Final Settlement Date, payment of the Tender Offer Consideration and the Accrued Interest Payment in respect of Notes validly tendered during the Late Tender Period and accepted for purchase will be made in immediately available funds delivered through The Depository Trust Company for payment to the cash accounts of the relevant Noteholders. Following completion of the Offer, the Offeror intends to cancel the Notes purchased pursuant to the Offer. The Offer was made in compliance with Rule 14e-1 under the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act"), including the requirements relating to the period the Offer is held open, notice of changes to the terms of the Offer and the prompt payment for securities tendered. Subject to applicable law, the Offeror reserves the right, in its sole and absolute discretion, to (i) re-open or terminate the Offer, (ii) increase, decrease or eliminate the Maximum Acceptance Amount and (iii) otherwise amend or waive any of the terms and conditions of the Offer at any time, as described in the Offer to Purchase under the heading "Amendment and Termination". Details of any such re-opening termination, amendment or waiver will be notified to the Noteholders as soon as reasonably practicable after such decision is made. About POSCO POSCO is a corporation organized under the laws of the Republic of Korea. POSCO is the largest fully integrated steel producer in Korea and is a consolidated subsidiary of POSCO HOLDINGS INC. Any questions regarding procedures for tendering Notes or requests for additional copies of the Offer to Purchase should be directed to the Information & Tender Agent. INFORMATION & TENDER AGENT D.F. King & Co., Inc.28 Liberty Street, 53rd FloorNew York, New York 10005, United StatesToll Free: (877) 783-5524Toll: (646) [email protected] to purchase website: https://clients.dfkingltd.com/posco If a Noteholder has questions about the Offer or the procedures for tendering Notes, he should contact the Information & Tender Agent or the Dealer Managers at their respective telephone numbers. DEALER MANAGERS Cautionary Note Concerning Forward-Looking Statements Certain statements in this announcement are forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Actual results may differ materially from these statements. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "expect," "intend," "may," "will," or other words or phrases of similar import but these are not the exclusive means of identifying these statements. Although the Offeror believes that the expectations reflected in its forward-looking statements are reasonable, such expectations might not prove to be correct. Statements in this announcement speak only as of its date, and the Offeror disclaims any responsibility to update or revise such statements whether as a result of new information, future events or otherwise. Disclaimer THE OFFER WAS MADE SOLELY PURSUANT TO, AND IS GOVERNED BY, THE OFFER TO PURCHASE. THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY SECURITIES NOR WILL THERE BE ANY SALE OF ANY SECURITIES IN ANY JURISDICTION IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL PRIOR TO REGISTRATION OR QUALIFICATION UNDER THE SECURITIES LAWS OF ANY JURISDICTION. This announcement is released by POSCO and contains information that qualified or may have qualified as inside information for the purposes of Article 7(1) of the Market Abuse Regulation (EU) 596/2014 (as amended, "MAR"), encompassing information relating to the Offer as described above. This announcement is made in accordance with the Offeror's obligations under Article 17 of MAR. For the purposes of MAR and Article 2 of Commission Implementing Regulation (EU) 2016/1055, this announcement is made by Sung Jeen Nam, Head of Team, Finance Management Group of POSCO. View original content:https://www.prnewswire.com/news-releases/posco-announces-the-final-tender-results-of-its-offer-to-purchase-for-cash-up-to-us400-000-000-aggregate-principal-amount-of-its-outstanding-5-750-notes-due-2028--302838463.html

SEOUL, South Korea, July 16, 2026 /PRNewswire/ -- POSCO, a corporation organized under the laws of the Republic of Korea (the "Offeror"), today announced the pricing results in connection with its offer to purchase for cash up to US$400,000,000 aggregate principal amount (the "Maximum Acceptance Amount") of its outstanding 5.750% Notes due 2028 (CUSIP: 73730EAD5 (144A) / Y7S272AG7 (Reg S) ISIN: US73730EAD58 (144A) / USY7S272AG74 (Reg S)) (the "Notes") issued by the Offeror, from the Noteholders (the "Offer"). The Offer commenced on June 30, 2026 and is being made pursuant to an Offer to Purchase dated June 30, 2026 (the "Offer to Purchase"), which is available on the offer to purchase website at https://clients.dfkingltd.com/posco. Capitalized terms used but not defined herein have the meanings assigned to them in the Offer to Purchase. Pricing Results The Reference Yield was determined at 10:00 a.m., New York City time, on July 15, 2026 (the "Price Determination Date"), the business day after the Early Tender Deadline, by reference to the bid-side price of the Reference Security displayed on the Bloomberg Reference Page at the Price Determination Date. The pricing details of the Offer are as follows: Description of Securities: US$1,000,000,000 5.750% Notes due 2028 CUSIP / ISIN: 73730EAD5 (144A) / Y7S272AG7 (Reg S); US73730EAD58 (144A) / USY7S272AG74 (Reg S) Reference Security: 4.125% US Treasury due June 30, 2028 Bloomberg Reference Page: FIT 1 Fixed Spread: 30 basis points Reference Yield: 4.156% Early Tender Offer Consideration (per US$1,000 principal amount): US$1,018.47 Tender Offer Consideration (per US$1,000 principal amount): US$968.47 Holders of Notes will also receive Accrued Interest Payment on Notes accepted for purchase up to, but excluding, the Early Settlement Date. The Early Tender Offer Consideration was calculated in accordance with the formula set out in Schedule A to the Offer to Purchase, reflecting a yield to the Maturity Date (January 17, 2028) equal to the Reference Yield plus the Fixed Spread of 30 basis points. The Early Tender Offer Consideration already includes the Early Tender Premium of US$50 per US$1,000 principal amount of Notes. The Tender Offer Consideration is equal to the Early Tender Offer Consideration minus the Early Tender Premium of US$50 per US$1,000 principal amount of Notes. In addition to the applicable Early Tender Offer Consideration or Tender Offer Consideration, as applicable, the Offeror will also pay the Accrued Interest Payment. For the avoidance of doubt, interest will cease to accrue after the applicable settlement date for Notes accepted for purchase pursuant to the Offer. Early Tender Results The Early Tender Deadline was 5:00 p.m., New York City time, on July 14, 2026. As of the Early Tender Deadline, US$358,232,000 aggregate principal amount of Notes were validly tendered and not validly withdrawn pursuant to the Offer. The aggregate principal amount of Notes validly tendered at or before the Early Tender Deadline is less than the Maximum Acceptance Amount of US$400,000,000. Accordingly, the Offeror has decided to accept for purchase all Notes validly tendered at or before the Early Tender Deadline (and not validly withdrawn at or before the Withdrawal Deadline) in full. No proration applies (i.e., the Scaling Factor does not apply and all validly tendered Notes have been accepted for purchase at 100%). The Remaining Acceptance Amount (being the Maximum Acceptance Amount minus the aggregate principal amount of Notes validly tendered and accepted for purchase as of the Early Tender Deadline) is US$41,768,000. Late Tender Period Notes validly tendered during the Late Tender Period (i.e., after the Early Tender Deadline but at or before the Expiration Deadline of 5:00 p.m., New York City time, on July 29, 2026) will be eligible for the Tender Offer Consideration (and not the Early Tender Offer Consideration) on the Final Settlement Date, subject to the Remaining Acceptance Amount. The Tender Offer Consideration is equal to the Early Tender Offer Consideration minus the Early Tender Premium of US$50 per US$1,000 principal amount of Notes. If the total aggregate principal amount of Notes validly tendered during the Late Tender Period exceeds the Remaining Acceptance Amount, such Notes will be accepted on a pro-rata basis such that the total aggregate principal amount of Notes accepted for purchase by the Offeror is equal (or as close as possible) to the Maximum Acceptance Amount. Each tender that is scaled will be rounded down (subject to the Minimum Denomination of US$200,000) to the nearest US$1,000 in principal amount. If such proration and rounding down would result in Notes in a principal amount of less than the Minimum Denomination being returned to a Noteholder, the Offeror will, in its sole and absolute discretion and subject to applicable law, either reject all or purchase all of such Noteholder's validly tendered Notes. Noteholders who tender Notes after the Early Tender Deadline will NOT receive the Early Tender Offer Consideration and will ONLY be eligible to receive the Tender Offer Consideration (which is equal to the Early Tender Offer Consideration minus the Early Tender Premium of US$50 per US$1,000 principal amount of Notes). Settlement The Early Settlement Date is expected to be July 20, 2026. On the Early Settlement Date, payment of the Early Tender Offer Consideration and the Accrued Interest Payment in respect of Notes accepted for purchase as of the Early Tender Deadline will be made in immediately available funds delivered through The Depository Trust Company ("DTC") for payment to the cash accounts of the relevant Noteholders. The Final Settlement Date is expected to be July 31, 2026. On the Final Settlement Date, payment of the Tender Offer Consideration and the Accrued Interest Payment in respect of Notes validly tendered during the Late Tender Period and accepted for purchase will be made in immediately available funds delivered through DTC for payment to the cash accounts of the relevant Noteholders. Following completion of the Offer, the Offeror intends to cancel the Notes purchased pursuant to the Offer. Expiration Deadline and Ongoing Offer Terms The Offer will expire at 5:00 p.m., New York City time, on July 29, 2026 (the "Expiration Deadline"), unless extended, re-opened, withdrawn or terminated by the Offeror. The Offer is being made in compliance with Rule 14e-1 under the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act"), including the requirements relating to the period the Offer is held open, notice of changes to the terms of the Offer and the prompt payment for securities tendered. Subject to applicable law, the Offeror reserves the right, in its sole and absolute discretion, to (i) extend, re-open, withdraw or terminate the Offer, (ii) increase, decrease or eliminate the Maximum Acceptance Amount and, in each case, may do so without extending the Early Tender Deadline or the Withdrawal Deadline and (iii) otherwise amend or waive any of the terms and conditions of the Offer at any time, as described in the Offer to Purchase under the heading "Amendment and Termination." Details of any such extension, re-opening, withdrawal, termination, amendment or waiver will be notified to the Noteholders as soon as reasonably practicable after such decision is made. About POSCO POSCO is a corporation organized under the laws of the Republic of Korea. POSCO is the largest fully integrated steel producer in Korea and is a consolidated subsidiary of POSCO HOLDINGS INC. Noteholders are advised to check with any bank, securities broker, Direct Participant or other intermediary through which they hold Notes when such intermediary would require to receive instructions from a Noteholder in order for that Noteholder to be able to participate in the Offer before the deadlines specified in the Offer to Purchase. The deadlines set by any such intermediary and DTC for the submission of Tender Instructions will be earlier than the relevant deadlines specified in the Offer to Purchase. Any questions regarding procedures for tendering Notes or requests for additional copies of the Offer to Purchase should be directed to the Information & Tender Agent. INFORMATION & TENDER AGENT D.F. King & Co., Inc.28 Liberty Street, 53rd FloorNew York, New York 10005, United StatesToll Free: (877) 783-5524Toll: (646) [email protected] to purchase website: https://clients.dfkingltd.com/posco If a Noteholder has questions about the Offer or the procedures for tendering Notes, he should contact the Information & Tender Agent or the Dealer Managers at their respective telephone numbers. DEALER MANAGERS Cautionary Note Concerning Forward-Looking Statements Certain statements in this announcement are forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Actual results may differ materially from these statements. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "expect," "intend," "may," "will," or other words or phrases of similar import but these are not the exclusive means of identifying these statements. Although the Offeror believes that the expectations reflected in its forward-looking statements are reasonable, such expectations might not prove to be correct. Statements in this announcement speak only as of its date, and the Offeror disclaims any responsibility to update or revise such statements whether as a result of new information, future events or otherwise. Disclaimer THE OFFER IS BEING MADE SOLELY PURSUANT TO, AND WILL BE GOVERNED BY, THE OFFER TO PURCHASE. THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY SECURITIES NOR WILL THERE BE ANY SALE OF ANY SECURITIES IN ANY JURISDICTION IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL PRIOR TO REGISTRATION OR QUALIFICATION UNDER THE SECURITIES LAWS OF ANY JURISDICTION. This announcement is released by POSCO and contains information that qualified or may have qualified as inside information for the purposes of Article 7(1) of the Market Abuse Regulation (EU) 596/2014 (as amended, "MAR"), encompassing information relating to the Offer as described above. This announcement is made in accordance with the Offeror's obligations under Article 17 of MAR. For the purposes of MAR and Article 2 of Commission Implementing Regulation (EU) 2016/1055, this announcement is made by Sung Jeen Nam, Head of Team, Finance Management Group of POSCO. View original content:https://www.prnewswire.com/news-releases/posco-announces-pricing-results-of-its-offer-to-purchase-for-cash-up-to-us400-000-000-aggregate-principal-amount-of-its-outstanding-5-750-notes-due-2028--302827930.html

THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO, OR TO ANY PERSON LOCATED AND/OR RESIDENT IN ANY JURISDICTION WHERE IT IS UNLAWFUL TO DISTRIBUTE THIS ANNOUNCEMENT. THIS ANNOUNCEMENT RELATES TO THE DISCLOSURE OF INFORMATION THAT QUALIFIED OR MAY HAVE QUALIFIED AS INSIDE INFORMATION WITHIN THE MEANING OF ARTICLE 7(1) OF THE MARKET ABUSE REGULATION (EU) 596/2014 (AS AMENDED) SEOUL, South Korea, July 15, 2026 /PRNewswire/ -- POSCO, a corporation organized under the laws of the Republic of Korea (the "Offeror"), today announced the early tender results of its previously announced cash tender offer (the "Offer") for its validly tendered (and not validly withdrawn) notes set forth in the table below (the "Notes") issued by the Offeror, from the Noteholders (the "Offer"). The Offer commenced on June 30, 2026 and is being made pursuant to an Offer to Purchase dated June 30, 2026 (the "Offer to Purchase"), which is available on the offer to purchase website at https://clients.dfkingltd.com/posco. Capitalized terms used but not defined herein have the meanings assigned to them in the Offer to Purchase. The following table summarizes certain information regarding the Notes that were validly tendered and not validly withdrawn in the Offer as of 5:00 p.m. New York City time, on July 14, 2026 (the "Early Tender Deadline"). Withdrawal rights for the Offer expired at 5:00 p.m. New York City time, on July 14, 2026 (the "Withdrawal Deadline"), and, accordingly, any Notes there were validly tendered in the Offer may no longer be withdrawn, except where additional withdrawal rights are required by law. (1) The Offeror is offering to accept the maximum principal amount of validly tendered (and not validly withdrawn) Notes in the Offer for which the aggregate principal amount of Notes does not exceed $400,000,000 (the "Maximum Acceptance Amount"). The determination of the Early Tender Consideration and Tender Offer Consideration to be paid for Notes validly tendered (and not validly withdrawn) and accepted for purchase pursuant to the Offer will occur at 10:00 a.m. New York City time, on July 15, 2026 (the "Price Determination Date") in the manner described in the Offer to Purchase by reference to a fixed spread for the Notes over the applicable yield to maturity of the applicable U.S. Treasury Reference Security specified on the front cover of the Offer to Purchase in the column entitled "Reference Security". Each holder who validly tendered and did not validly withdraw its Notes at or prior to the Early Tender Deadline and whose Notes are accepted for purchase will be entitled to receive the applicable Early Tender Consideration, which includes an early tender premium of US$50 per US$1,000 principal amount of Notes so tendered and accepted for purchase (the "Early Tender Premium"). The Early Tender Premium will be included in the Early Tender Consideration for the Notes and will not constitute an additional or increased payment. In addition, Noteholders whose Notes are accepted for purchase will receive accrued and unpaid interest on their Notes up to, but not including, the Early Settlement Date or the Final Settlement Date, as applicable (the "Accrued Interest Payment"). The Offeror expects to issue a press release on July 15, 2026, announcing the Early Tender Consideration and Tender Offer Consideration payable in connection with the Offer. Late Tender Period Notes validly tendered during the Late Tender Period (i.e., after the Early Tender Deadline but at or before the Expiration Deadline of 5:00 p.m., New York City time, on July 29, 2026) will be eligible for the Tender Offer Consideration (and not the Early Tender Offer Consideration) on the Final Settlement Date, subject to the Remaining Acceptance Amount. The Tender Offer Consideration is equal to the Early Tender Offer Consideration minus the Early Tender Premium of US$50 per US$1,000 principal amount of Notes. If the total aggregate principal amount of Notes validly tendered during the Late Tender Period exceeds the Remaining Acceptance Amount, such Notes will be accepted on a pro-rata basis such that the total aggregate principal amount of Notes accepted for purchase by the Offeror is equal (or as close as possible) to the Maximum Acceptance Amount. Each tender that is scaled will be rounded down (subject to the Minimum Denomination of US$200,000) to the nearest US$1,000 in principal amount. If such proration and rounding down would result in Notes in a principal amount of less than the Minimum Denomination being returned to a Noteholder, the Offeror will, in its sole and absolute discretion and subject to applicable law, either reject all or purchase all of such Noteholder's validly tendered Notes. Noteholders who tender Notes after the Early Tender Deadline will NOT receive the Early Tender Offer Consideration and will ONLY be eligible to receive the Tender Offer Consideration (which is equal to the Early Tender Offer Consideration minus the Early Tender Premium of US$50 per US$1,000 principal amount of Notes). Price Determination Date The determination of the Early Tender Offer Consideration and Tender Offer Consideration will occur at 10:00 a.m. (New York City time) on July 15, 2026, the business day after the Early Tender Deadline (as such time and date may be extended, subject to certain exceptions set forth herein). In addition to the Early Tender Offer Consideration or Tender Offer Consideration, as applicable, the Offeror will also pay accrued and unpaid interest on Notes purchased pursuant to the Offer up to, but not including, the Early Settlement Date or the Final Settlement Date, as applicable. For the avoidance of doubt, interest will cease to accrue after the applicable settlement date for Notes accepted for purchase pursuant to the Offer. Settlement The Early Settlement Date is expected to be July 20, 2026. On the Early Settlement Date, payment of the Early Tender Offer Consideration and the Accrued Interest Payment in respect of Notes accepted for purchase as of the Early Tender Deadline will be made in immediately available funds delivered through The Depository Trust Company ("DTC") for payment to the cash accounts of the relevant Noteholders. The Final Settlement Date is expected to be July 31, 2026. On the Final Settlement Date, payment of the Tender Offer Consideration and the Accrued Interest Payment in respect of Notes validly tendered during the Late Tender Period and accepted for purchase will be made in immediately available funds delivered through DTC for payment to the cash accounts of the relevant Noteholders. Following completion of the Offer, the Offeror intends to cancel the Notes purchased pursuant to the Offer. Expiration Deadline and Ongoing Offer Terms The Offer will expire at 5:00 p.m., New York City time, on July 29, 2026 (the "Expiration Deadline"), unless extended, re-opened, withdrawn or terminated by the Offeror. The Offer is being made in compliance with Rule 14e-1 under the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act"), including the requirements relating to the period the Offer is held open, notice of changes to the terms of the Offer and the prompt payment for securities tendered. Subject to applicable law, the Offeror reserves the right, in its sole and absolute discretion, to (i) extend, re-open, withdraw or terminate the Offer, (ii) increase, decrease or eliminate the Maximum Acceptance Amount and, in each case, may do so without extending the Early Tender Deadline or the Withdrawal Deadline and (iii) otherwise amend or waive any of the terms and conditions of the Offer at any time, as described in the Offer to Purchase under the heading "Amendment and Termination". Details of any such extension, re-opening, withdrawal, termination, amendment or waiver will be notified to the Noteholders as soon as reasonably practicable after such decision is made. Offer to Purchase The Offer is being made solely pursuant to the Offer to Purchase dated June 30, 2026. The Offer to Purchase contains the full terms and conditions of the Offer. The Offer to Purchase is available from the Information & Tender Agent and on the offer to purchase website at https://clients.dfkingltd.com/posco. Noteholders should carefully review the full terms and conditions of the Offer as described in the Offer to Purchase before making any decision with respect to the Offer. About POSCO POSCO is a corporation organized under the laws of the Republic of Korea. POSCO is the largest fully integrated steel producer in Korea and is a consolidated subsidiary of POSCO HOLDINGS INC. Noteholders are advised to check with any bank, securities broker, Direct Participant or other intermediary through which they hold Notes when such intermediary would require to receive instructions from a Noteholder in order for that Noteholder to be able to participate in, or (at or prior to the Withdrawal Deadline) revoke their instruction to participate in, the Offer before the deadlines specified in the Offer to Purchase. The deadlines set by any such intermediary and DTC for the submission of Tender Instructions will be earlier than the relevant deadlines specified in the Offer to Purchase. Any questions or requests for assistance in connection with the Offer may be directed to the Dealer Managers at the telephone numbers or email addresses provided below. Any questions or requests for assistance in connection with the delivery of Tender Instructions or requests for copies of the Offer to Purchase or related documents, which may be obtained free of charge, may be directed to the Information & Tender Agent at the telephone number or email address provided below. Before making a decision with respect to the Offer, Noteholders should carefully consider all of the information in the Offer to Purchase and, in particular, the risk factors described in the section entitled "Risk Factors and Other Considerations". The Offeror has appointed The Hongkong and Shanghai Banking Corporation Limited and J.P. Morgan Securities LLC to act as Dealer Managers for the Offer and D.F. King & Co., Inc. to act as Information & Tender Agent. Cautionary Note Concerning Forward-Looking Statements Certain statements in this announcement are forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Actual results may differ materially from these statements. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "expect," "intend," "may," "will," or other words or phrases of similar import but these are not the exclusive means of identifying these statements. Although the Offeror believes that the expectations reflected in its forward-looking statements are reasonable, such expectations might not prove to be correct. Statements in this announcement speak only as of its date, and the Offeror disclaims any responsibility to update or revise such statements whether as a result of new information, future events or otherwise. Disclaimer THE OFFER IS BEING MADE SOLELY PURSUANT TO, AND WILL BE GOVERNED BY, THE OFFER TO PURCHASE. THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY SECURITIES NOR WILL THERE BE ANY SALE OF ANY SECURITIES IN ANY JURISDICTION IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL PRIOR TO REGISTRATION OR QUALIFICATION UNDER THE SECURITIES LAWS OF ANY JURISDICTION. This announcement is released by POSCO and contains information that qualified or may have qualified as inside information for the purposes of Article 7(1) of the Market Abuse Regulation (EU) 596/2014 (as amended, "MAR"), encompassing information relating to the Offer as described above. This announcement is made in accordance with the Offeror's obligations under Article 17 of MAR. For the purposes of MAR and Article 2 of Commission Implementing Regulation (EU) 2016/1055, this announcement is made by Sung Jeen Nam, Head of Team, Finance Management Group of POSCO. View original content:https://www.prnewswire.com/news-releases/posco-announces-the-early-tender-results-of-its-offer-to-purchase-for-cash-up-to-us400-000-000-aggregate-principal-amount-of-its-outstanding-5-750-notes-due-2028--302826602.html

Despite geopolitical volatility, POSCO reported a quarter-to-quarter improvement with consolidated revenue of KRW 17.9 trillion, operating profit around KRW 710 billion and EBITDA of KRW 1.8 trillion, reflecting normalization from one-off headwinds in the prior quarter. Rechargeable battery materials performance sharpened as higher lithium prices and ramped production led POSCO Argentina to its first monthly profit in March, narrowed losses by about KRW 150 billion QoQ, and set expectations for the unit’s first quarterly profit in Q2 while securing a 25,000‑ton supply deal with SK On. Management accelerated steel decarbonization and restructuring — retiring aging FINEX capacity, bringing a 2.5 million‑ton EAF online in June and starting a 300,000‑ton HyREX demo — announced a 50/50 JV with JSW for a 6Mt integrated mill targeted for 2031, and shifted to a performance‑linked shareholder return policy targeting 35–40% payout of adjusted net income. Interested in POSCO? Here are five stocks we like better. POSCO (NYSE:PKX) executives said first-quarter 2026 results improved from the prior quarter despite heightened volatility tied to geopolitical tensions, while the company advanced major steel decarbonization projects and outlined a new performance-linked shareholder return framework. Kim Seung-Jun, Head of Financial IR Division at POSCO Holdings, said the quarter was shaped by “the U.S.-Iran war” disrupting the energy supply chain and creating fluctuations in financial markets, including “unstable exchange rates.” Despite those headwinds, Kim said POSCO Holdings posted consolidated revenue of KRW 17.9 trillion and operating profit of KRW 710 billion, with both metrics improving versus the previous quarter. → Meta Posted Its Best Sales Growth Since 2021—So Why Did Shares Fall? Han Young-Ah, Head of IR Office, provided additional financial detail, saying consolidated revenue rose by “around KRW 1 trillion” quarter over quarter and operating profit totaled KRW 707 billion. Han also cited EBITDA of KRW 1.8 trillion, up KRW 721 billion quarter over quarter, and said results reflected a normalization from the prior quarter, which had been weighed down by one-off factors. Management highlighted a sharp improvement in rechargeable battery materials performance, helped by higher lithium prices and increased production. Kim Seung-Jun said lithium prices rose during the quarter, boosting performance at lithium production subsidiaries and “significantly reducing losses.” He pointed to POSCO Argentina’s ramp-up and said the operation recorded its “first-ever monthly KRW profit” in March, adding that the company expected the momentum to continue into the second quarter and anticipated POSCO Argentina’s “first-ever quarterly KRW profit” in the second quarter. → Verizon’s Signal Strength: The Turnaround Call Is Loud and Clear Han said rechargeable battery materials losses narrowed by about KRW 150 billion quarter over quarter, driven by a higher operating rate at the Argentina lithium plant and improvements at POSCO Pilbara Lithium Solution, including “the rebound in lithium prices and reversal of inventory valuation losses.” On operations, Han said POSCO Argentina was entering the commercial production phase for its phase I plant and the operating rate reached around 70% in March. She also noted a long-term supplier agreement with SK On for 25,000 tons was signed during the quarter. Phase II construction is progressing toward completion in October, with additional brine resource 확보 and test commissioning underway, according to Han. → 5 Stocks to Buy in May Before the Next AI Surge Hits In Q&A, Yoon Tae-il, Head of Energy Materials Business Management Office, attributed POSCO Argentina’s profitability improvement primarily to higher utilization and a shift away from low-price contracts signed when lithium prices were depressed. He said customer certification is underway and selling prices are now “very much close to the index level.” Yoon added that phase II depreciation would begin in October, and he expected phase II to generate about KRW 15 billion in losses, but said phase I and II combined “will definitely turn to profit this year.” Executives also discussed spreads in the lithium concentrate business. Han said POSCO Pilbara Lithium Solution cut losses to KRW 3 billion from KRW 50 billion, but cautioned performance would be influenced by spreads between lithium and spodumene. Yoon later said hard-rock lithium supply is tight—particularly tied to ESS demand—and that higher spodumene prices have been a key driver of margin pressure. Steel results improved modestly at the group level, but executives emphasized continuing cost pressure. Han said steel business profit increased by KRW 91 billion quarter over quarter, though at POSCO, higher FX rates, logistics costs, and raw material prices kept margins under pressure. She said overseas steel results improved, citing recovery in India and Vietnam and a base effect tied to the prior loss at Zhangjiagang, which was later divested. Han also said POSCO’s first-quarter operating profit declined quarter over quarter to KRW 213 billion, even as sales volume recovered and utilization normalized. She attributed the decline to higher raw material prices, rising FX, and freight costs linked to the Iran war, adding that cost pressure would remain a burden in the second quarter. Management framed 2026 as a year when strategic changes in steel are “coming to fruition.” Kim Seung-Jun said the company finalized investment actions involving PDSS, described as an underperforming China subsidiary, and retired No. 2 FINEX to reduce high costs tied to aging facilities. He said the company’s largest new electrical furnace with 2.5 million tons of capacity would begin operation in June to expand its low-carbon production system. He also said a 300,000-ton HyREX demo plant had broken ground and permits were obtained for the Pohang HyREX plant site. Hong Yoon-Sik, Head of Steel Business Management Office, addressed expected cost impact from the EAF start-up. He said costs would be higher than initially expected due to demand conditions and a phased utilization plan. Hong estimated that at a 10% utilization rate, annual costs would rise by about KRW 70 billion to KRW 80 billion, adding that higher selling prices and a potential premium could offset some of the impact. POSCO Holdings also detailed its integrated steelworks joint venture with JSW in India. Kim Gwang-mu, Head of Strategic Investment Division, said POSCO and JSW signed a joint venture agreement on April 20 for an integrated steel mill. He described the governance structure as a 50/50 JV, with each company appointing three directors and alternating CEO appointments for a five-year term. Kim said the project targets a 6 million-ton, blast furnace-based facility focused on high-premium steel products. Because automotive steel products require customer certification, Kim said the JV plans to initially supply construction steel to generate profit before moving into automotive steel sheets. He also said POSCO would initially export some materials from Korea for processing in India, but the longer-term goal is to localize sourcing. Kim said the site in Odisha offers raw material access and infrastructure advantages, and emphasized that prior site acquisition reduces permitting and licensing risk compared with past efforts. On timing, Kim said construction is expected to be completed by 2031. In response to later questions, he said the plan is to “set up by 2031” and begin operation in 2032. When asked how the JV might affect exports to POSCO Maharashtra, Kim said exports of hot-rolled products would likely continue at similar volumes until the JV begins operating, and that exports should not be impacted initially because automotive steel sheets would not be produced immediately. Kim also argued the project’s competitiveness would come from low-cost labor and lower-cost iron ore. He said Indian iron ore prices are “about 50%-60% lower” than global index prices and described a 30% tariff meant to discourage exports. He added that Odisha’s proximity to mines and JSW’s capabilities should support stable procurement. POSCO Holdings outlined a “third interim shareholder return policy” beginning in 2026. Kim Seung-Jun said the company intends to move toward an earnings-based, performance-linked policy, targeting a 35% to 40% shareholder return ratio based on net income attributable to controlling interests, using a mix of cash dividends and share buybacks and cancellations. Han said the prior three-year framework (2023–2025) delivered KRW 3.5 trillion in shareholder returns, including KRW 2.3 trillion in cash dividends and KRW 1.2 trillion in canceled treasury shares. She said the company plans to base returns on “adjusted net profit” excluding non-recurring gains and losses to improve payout visibility and sustainability as strategic investments increase. During Q&A, executives also addressed the operational impacts of Middle East tensions. Ha Seong-Yeol, Head of Finance at POSCO, said POSCO is among the most impacted group companies due to FX, oil prices, and LNG prices. He said POSCO is shifting settlement currency and seeking to bring in more dollars, diversifying LNG supply routes such as to Indonesia, and working to raise energy efficiency, while acknowledging it would be difficult to offset all cost increases and some would need to be reflected in product pricing. Kim Seung-Jun added that while FX has a negative impact on POSCO, POSCO International and POSCO Future M can benefit from FX fluctuations, and he estimated those positives cover “about 50%” of losses experienced at POSCO from FX moves. POSCO (NYSE: PKX) is a South Korea–based integrated steel producer founded in 1968 as Pohang Iron and Steel Company. Headquartered in Pohang, the company grew rapidly as part of South Korea's industrialization program and developed large, integrated steelworks—most notably in Pohang and Gwangyang—that helped establish POSCO among the world's largest steelmakers. It is structured as a diversified industrial group with steelmaking at its core and a range of downstream and trading businesses. The company's primary activities include ironmaking and steelmaking, producing a wide array of steel products such as hot-rolled and cold-rolled sheets, coated steels, plates, stainless and special steels, long products (bars and wire rods), and seamless pipes. The article "POSCO Q1 Earnings Call Highlights" was originally published by MarketBeat.

This article first appeared on GuruFocus. Consolidated Revenue: KRW17.9 trillion, an increase from the previous quarter. Operating Profit: KRW710 billion, showing improvement against the previous quarter. EBITDA: KRW1.8 trillion, up KRW721 billion quarter-over-quarter. Steel Business Profit: Increased by KRW91 billion. Rechargeable Battery Materials Loss Reduction: Narrowed by KRW150 billion quarter-over-quarter. Infrastructure Business Profit Increase: KRW415 billion quarter-over-quarter. POSCO EMC Operating Profit: KRW53 billion, turning to profit from previous losses. POSCO Argentina Lithium Plant Operating Rate: Reached around 70% as of March. POSCO Pilbara Lithium Solution Loss Reduction: Reduced to KRW3 billion from KRW50 billion. Shareholder Return Policy: Targeting a 35% to 40% shareholder return ratio based on adjusted net profit. POSCO Q1 Operating Profit: KRW213 billion, with stable selling prices but higher raw material costs. POSCO Future M Revenue and Profit: Recorded higher revenue and operating profit. POSCO International Profit Growth: Increased profits in both energy and trading businesses. Warning! GuruFocus has detected 14 Warning Signs with PKX. Is PKX fairly valued? Test your thesis with our free DCF calculator. Release Date: April 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. POSCO Holdings Inc (NYSE:PKX) recorded consolidated revenue of KRW17.9 trillion and KRW710 billion in operating profits, showing improvements from the previous quarter. The lithium production subsidiaries, particularly in Argentina, have significantly reduced losses and recorded their first-ever monthly profit in March. POSCO International saw an increase in steel exports and demand recovery in the gas and energy sectors, contributing to profit growth. The strategic shift in the steel business is progressing, with the divestment of underperforming subsidiaries and the expansion of low-carbon production systems. POSCO Holdings Inc (NYSE:PKX) plans to enhance shareholder returns with a performance-linked policy, aiming for a 35% to 40% shareholder return ratio. The US-Iran war has disrupted the energy supply chain, leading to unstable exchange rates and increased raw material costs, squeezing profits. Higher FX rates, logistics costs, and raw material prices have put pressure on margins in the steel business. The geopolitical risk in the Middle East and rising input costs due to FX and oil price hikes are expected to continue impacting profits in the short term. The lithium business faces challenges with rising raw material costs, particularly spodumene prices, which could squeeze profit margins. Direct employment of subcontractors may lead to increased SG&A costs, impacting overall expenses. Q: Regarding the JV agreement in India, what will happen to POSCO Maharashtra after the JV goes into effect? A: My name is Kwin Kwang Moo from the Strategy Investment Division. Until the JV goes into effect, hot roll products will continue to be exported at the same volume. Once the JV is operational, we will initially supply non-automotive steel products, and exports will not be impacted. Q: How does the Iran situation and the Strait of Hormuz impact your business, especially in terms of exports and FX? A: Ha Jong Yeo, Finance Office Head, explained that the Iran war impacts POSCO due to FX, oil price hikes, and LNG price increases. Efforts are being made to bring in more dollars and diversify LNG supply routes. However, some cost increases will need to be passed on to product prices. Q: What are your expectations for the lithium business profits this year? A: The Head of Finance at POSCO stated that the lithium brine project in Argentina is expected to turn to profit from May. For lithium concentrates, the raw material costs have risen, but there is an expectation of narrowing the gap in the second half, leading to profitability. Q: Can you elaborate on the dramatic earnings improvement in POSCO Argentina's lithium business? A: The Energy Materials Office explained that the improvement is due to increased utilization rates and competitive contracts signed when lithium prices were low. Phase 2 will impact profitability from October, with combined operations expected to turn to profit this year. Q: What competitive edge does POSCO have in the Indian steel market, given the increasing competition? A: Kim Kang Moo, Head of Strategic Investment Division, highlighted that India's steel demand is expected to grow significantly. POSCO's competitive edge lies in high-end premium steel, which will differentiate it in the market. For the complete transcript of the earnings call, please refer to the full earnings call transcript.