POSCO (PKX) Q2 2026 Earnings Report

The call conveyed a cautiously positive tone: the company reported solid quarter‑over‑quarter revenue and operating profit growth, multiple operational milestones (EAF, rare gas plant), a notable lithium turnaround in Argentina, RBM returning to surplus, and cash generation from restructuring and divestments. However, material near‑term risks remain — input cost inflation, FX and energy volatility, trade measures, safety concerns, EAF ramp and lithium market spreads — and management flagged a likely temporary Q3 slowdown in lithium production. Overall, achievements and directional progress across several growth pillars (steel decarbonization, lithium, rare gases, restructuring) outweigh the headwinds, while management acknowledges and has mitigation plans for the key challenges.

The company guided for continued quarter‑over‑quarter improvement but flagged a near‑term Q3 slowdown in rechargeable battery materials due to Argentina’s winter and LP dryer replacement, with full Plant 1/Plant 2 ramp and certified product sales expected in Q4 (uncertified products sell at ~10% discount). Key Q2 metrics: consolidated revenue KRW 19.3 trillion, operating profit KRW 819–820 billion, EBITDA KRW 1.9 trillion, CapEx KRW 2.0 trillion in Q2 (KRW 3.7 trillion H1); POSCO separate OP ~KRW 270–274 billion (2.9% margin), carbon steel ASP up to KRW 962,000/ton from KRW 920,000/ton, and raw material costs ~+6% q/q. Other notable figures factored into guidance: Q3 crude steel production target ~9 million tonnes (max), RBM swung to OP KRW 41 billion, POSCO Argentina sales +160% q/q and revenue +290% q/q with OP KRW 11 billion, P‑PLS revenue KRW 102 billion (OP loss ~KRW 1 billion), EAF 2.5 Mt completion included in H2 plans, H1 restructuring cash KRW 475.4 billion (plan to realize KRW 3.5 trillion by ’28), and a proposed KRW 3.5 trillion equity monetization with ~10% (~KRW 350 billion) earmarked for shareholder returns.