Posco Posts Stronger First-Quarter Earnings
By Kwanwoo Jun
Posco Holdings posted stronger first-quarter earnings, driven by resilient growth in its steel business and improved performance at its subsidiaries, raising hopes for a recovery this year.
The above-consensus results come as the South Korean steel giant benefits from Seoul's antidumping duties on low-priced steel imports from China and Japan, according to analysts. They also expect output cuts by Chinese steelmakers to provide a favorable backdrop for the company.
Improved profitability at Posco's affiliates, including battery-material supplier Posco Future M and overseas trading arm Posco International, also underpinned the holding company's quarterly results.
Net profit for the three months ended March 31 rose 58% from a year earlier to 543.00 billion won, equivalent to $364.8 million, reversing the previous quarter's loss--the first in a year.
That beat a FactSet consensus estimate of 332.39 billion won.
Revenue rose 2.5% on year to 17.876 trillion won, while operating profit gained 24% to 707.00 billion won.
The overall steel business maintained growth in the first quarter despite higher raw-material costs and the won's weakness against the dollar.
Posco Holdings said Thursday its steel business secured a new, stable revenue base. Earlier this month, it agreed with JSW Steel to establish a joint-venture plant in India with annual crude-steel production capacity of 6 million metric tons, strengthening its global supply chain.
Earlier in the day, Posco Future M and Posco International posted above-consensus first-quarter earnings.
Posco Future M returned to net profit in the first quarter, following the previous quarter's net loss, on increased sales of cathode materials and high value-added products. Posco International reported solid earnings growth on brisk trading in gas and other energy products, according to Posco Holdings.
Shares in the holding company have risen more than 50% so far this year, broadly in line with the benchmark Kospi's gain.
Write to Kwanwoo Jun at kwanwoo.jun@wsj.com
(END) Dow Jones Newswires
April 30, 2026 02:54 ET (06:54 GMT)
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