POSCO Holdings Inc - ADR

Q1 Performance Summary: POSCO Holdings reported consolidated revenue of KRW17.4 trillion and an operating profit of KRW570 billion for Q1 2025, demonstrating a recovery from the previous quarter where operating profits had bottomed at KRW95 billion. Improvements were noted across all business segments, with EBITDA reaching KRW1.6 trillion.

Strategic MOU with Hyundai Motor Group: An MOU has been signed with Hyundai Motor Group for a joint investment in a steelmaking plant in the U.S. and the development of next-generation battery materials, aiming to address the U.S. steel market demands and comply with the USMCA requirements. This partnership presents a crucial opportunity for local supply and stabilization in a fluctuating market.

Energy Materials Segment Challenges: Despite reducing operating losses in the energy materials segment, a deficit of KRW100 billion remains, primarily due to ongoing ramp-up phases of newly built facilities. Stakeholders should note that profitability in this area may not stabilize until 2027, which could lead to continued pressure on cash flows if losses persist.