POSCO Holdings (005490) investor relations material

Executive summary

• Q2 2026 consolidated revenue reached KRW 19.3 trillion, with operating profit at KRW 820 billion, both up sequentially; all major sectors—steel, rechargeable battery materials, and infrastructure—posted profit gains, and the Argentina lithium business achieved its first-ever quarterly profit.

• Strategic investments and restructuring, including lithium resource acquisitions, rare gas plant completion, and divestment of underperforming subsidiaries, generated KRW 475.4 billion in additional cash in H1 2026 and supported portfolio optimization.

• The group comprises 199 consolidated subsidiaries, maintains strong credit ratings (S&P: BBB+ Stable, Moody's: Baa1 Negative), and is listed on the KOSPI.

Financial highlights

• Q2 2026 EBITDA was KRW 1.9 trillion, with an EBITDA margin of 9.7%; CapEx for H1 2026 totaled KRW 3.7 trillion.

• Q2 2026 net profit reached KRW 761 billion, up KRW 218 billion QoQ; EPS for Q2 2026 was KRW 7,785.

• H1 2026 consolidated revenue was KRW 37.1 trillion, with operating profit of KRW 1.53 trillion and net income attributable to controlling interests of KRW 1.15 trillion.

• Net debt increased to KRW 16,106 billion, with a net debt to equity ratio of 25.1% and a debt-to-equity ratio of 71%.

Outlook and guidance

• Q3 steel segment expected to see further performance gains, with increased production offsetting higher raw material costs.

• Ongoing expansion in lithium and LFP cathode businesses, with new projects in Australia and the U.S. targeting operational milestones in 2027–2028.

• Shareholder return policy for 2026–2028 targets a payout ratio of 35–40% of adjusted net income, combining cash dividends and share buybacks.