Posco Holdings reported a 48 percent on-year jump in third-quarter operating profit Monday, extending its earnings recovery for a third consecutive quarter as improving steel margins and stable energy operations helped offset weakness in battery materials.
The steelmaker posted consolidated revenue of 19.14 trillion won ($14.2 billion), operating profit of 945 billion won and net income of 380 billion won.
The results reflected progress in its "Triple Core" strategy, which focuses on steel, battery materials and liquefied natural gas as its three main growth pillars.
In its core steel business, Posco's quarterly operating profit recovered to the 400 billion won range for the first time in five quarters, driven by higher selling prices and increased shipments despite rising raw material costs.
Battery materials remained under pressure. Posco Future M benefited from recovering cathode material sales, but the segment recorded an operating loss amid lower lithium prices and a seasonal production decline at Posco Argentina.
Posco International maintained steady earnings, supported by increased gas production and higher palm oil output in Indonesia. Posco E&C also posted improved operating profit from the previous quarter.
The group continued investing in its growth businesses. Posco is expanding automotive steel production, while Posco Future M is converting part of its cathode material capacity to lithium iron phosphate batteries in Pohang, North Gyeongsang Province.
In Argentina, Posco completed a second lithium production plant with an annual capacity of 25,000 tons, which is expected to contribute to earnings from the second half of 2027.
The group also moved to expand its energy portfolio, signing an agreement to acquire Chord's shale gas assets in Pennsylvania. The assets have annual production equivalent to approximately 1 million tons of LNG.
Meanwhile, Posco Holdings reduced net debt by 4.3 trillion won through cash management and favorable foreign exchange effects from the stronger won. Its debt ratio declined by 6.7 percentage points.
The company said it would continue improving profitability in its existing businesses while expanding investments across its three core growth areas.
jyoungseon8@heraldcorp.com
