POSCO Holdings is projected to post 709.6 billion won in operating profit for Q2, marking two consecutive quarters of 700-billion-won-level earnings after escaping a downturn at the end of last year. Yonhap Infomax compiled consensus estimates from 11 major domestic securities firms that submitted Q2 forecasts within the past month, showing expected revenue of 18.0648 trillion won, operating profit of 709.6 billion won, and net profit of 446.8 billion won. The company's operating profit had plummeted to just 12.7 billion won in Q4 of the previous year before rebounding to 706.8 billion won in Q1 this year. Analysts attribute the recovery to steel price spread defense amid rising raw material costs and potential contributions from the lithium segment, though opinions diverge on which factor drove the improvement. The earnings outlook reflects ongoing uncertainty from global protectionism and material price volatility in the steel and battery materials sectors.
POSCO Holdings Posts 16.88% YoY Operating Profit Growth in Q2 Consensus
Revenue is expected to increase 2.9% year-over-year, while operating profit and net profit are projected to grow 16.88% and 433.22% respectively compared to the same period last year. The highest operating profit estimate among the 11 securities firms reached 775.3 billion won. If the consensus materializes, the company will have demonstrated a solid growth trajectory after shedding profitability struggles from the end of last year. Achieving two consecutive quarters of 700-billion-won-level operating profit following Q1's 706.8 billion won would confirm the company's recovery momentum.
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Analysts Debate Steel Margin Defense Versus Lithium Segment Contribution
Securities analysts offer contrasting interpretations of the detailed drivers behind the earnings improvement. Assessments range from views that the company maintained robust steel spreads (the gap between raw material and product prices) through price increases despite rising raw material costs, to analyses that the lithium segment performed strongly. Park Hyun-wook, analyst at Hyundai Motor Securities, stated that anti-dumping tariff effects on major domestic steel products and rising distribution prices are expected to improve steel price spreads in the second half, adding that the high-profitability lithium segment will drive growth going forward. Ahn Hoe-soo, analyst at DB Financial Investment, noted that annual depreciation costs of approximately 150 billion won will be additionally reflected when Argentina's second-phase operations commence in the second half, meaning the materials segment's growth momentum could temporarily slow until ramp-up is complete.
POSCO Holdings Launches 2.5M-Ton Gwangyang Electric Furnace and Secures HyREX Site Approval
The company has laid the groundwork for a low-carbon crude steel production system by launching full-scale operations of a new electric furnace at Gwangyang with an annual capacity of 2.5 million tons during Q2, one of the world's largest. POSCO Holdings closed the high-cost aging 2FINEX facility and instead received approval to develop a next-generation hydrogen reduction steelmaking (HyREX) site of approximately 410,000 pyeong in Pohang. The company also signed a joint venture agreement (JVA) with India's top steelmaker JSW to establish an integrated steel mill, concretizing its global expansion strategy.
Stock Closes at 313,500 Won with 521,000 Won Average Target Price
POSCO Holdings' stock price closed at 313,500 won on the 10th. The average target price from securities firms that submitted consensus estimates stands near 521,000 won.
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FAQ
What operating profit did POSCO Holdings achieve in Q2 according to analyst forecasts?
Analyst consensus from 11 major domestic securities firms projects POSCO Holdings posted 709.6 billion won in operating profit for Q2, representing 16.88% year-over-year growth and marking the second consecutive quarter of 700-billion-won-level earnings after Q1's 706.8 billion won.
What strategic capacity expansions did POSCO Holdings complete during Q2?
The company launched full-scale operations of a new electric furnace at Gwangyang with annual capacity of 2.5 million tons during Q2, received approval for a 410,000-pyeong HyREX site in Pohang, and signed a joint venture agreement with India's JSW to establish an integrated steel mill.
