Posco Net Profit Falls on Year Amid Steel Industry Challenges

By Kwanwoo Jun

Posco Holdings' third-quarter net profit rose from the previous quarter but remained lower than a year earlier, underscoring the steelmaker's continued struggle with sluggish demand and a challenging trade environment.

The South Korean company said Monday that weaker raw-material prices helped lift earnings sequentially. Even so, it flagged persistent headwinds from soft steel demand at home and overseas, along with increasingly protectionist trade measures globally, Posco said.

Net profit for the three months ended September fell 22% from a year earlier to 387.00 billion won, equivalent to $268.9 million, though that was more than four times the prior quarter's figure of 84.00 billion. That topped a FactSet consensus estimate of 333.38 billion won.

Revenue declined 5.8% on year to 17.261 trillion won, while operating profit dropped 14% to 639.00 billion won.

The results contrasted with those at subsidiary Posco Future M, a battery-materials supplier, which earlier Monday reported solid third-quarter earnings.

The company is likely to continue to navigate a steel industry increasingly rattled by tariff actions.

The European Union this month proposed that the volume of steel that can enter the bloc tariff-free be halved to 18.3 million tons annually. Imports above that quota should face a 50% duty, up from 25%, it said.

U.S. President Trump in June doubled duties on foreign steel and aluminum to 50%. Canada has also imposed import curbs to support domestic steel producers.

Facing an industry downturn, Posco has been divesting unprofitable and noncore assets to reinforce its financial structure and boost its valuation. The company said Monday it had raised around 1.4 trillion won as of the third quarter this year through its restructuring program.

Posco shares closed 1.7% lower on Monday ahead of the earnings release. The stock is up about 26% so far this year, lagging the Kospi benchmark's 68% rise.

Write to Kwanwoo Jun at kwanwoo.jun@wsj.com

(END) Dow Jones Newswires

October 27, 2025 04:06 ET (08:06 GMT)