POSCO Holdings Inc. (PKX) Q3 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

the external uncertainties that had continued since the first half became even more complex. Amid these conditions, Postco Holdings on a consolidated basis recorded revenue of 17.3 trillion won and operating profit of 640 billion won. Despite losses at Postco ENC, consolidated OP has bottomed out in the fourth quarter of last year and improved to three consecutive quarters. Our key business sector for sales performance continued to improve. Postco's average mill margin was comparable to that of last quarter, but sales volume rose, and the company's proactive cost-cutting efforts drove up operating profits. As a result, Postco's this quarter's OP margin recorded 6.6%. In steel, although EU duty-free quotas have been reduced and tariffs on steel products increased, Korea's steel market is normalizing, And therefore, we will strive to sustain solid level of profitability going forward. In rechargeable battery materials, losses narrow sharply QOQ. This was because at postcode future M, cathode sales volume increased ahead of the IRA benefit sunset. And at our lithium operations, the price rebound led to reversal of inventory valuation losses. As mentioned during the last earnings call, our top priority in lithium are ramping up new plants, improving process efficiency, and completing customer qualifications through to contract signing. Going forward, we will ensure disciplined execution, working to avoid any additional cost from ramp-up delays, and ultimately securing production efficiency and price competitiveness. In infrastructure, POSCO International maintained solid profits during the summer peak power season. However, as per POSCO E&C, we recognize the full estimated loss from the Shin An Sun Line accident and booked a portion of roughly one month of business suspe...