Posco Future M (003670) Q2 2026 earnings summary

Executive summary

• Achieved consolidated sales of KRW 680 bn and operating profit of KRW 27 bn in 2Q26, with operating margin improving to 3.9% year-over-year and quarter-over-quarter.

• Net profit reached KRW 25 bn in 2Q26, a significant turnaround from a net loss in the same quarter last year.

• Operates in refractory, lime/chemical, and energy materials sectors, with energy materials accounting for 53% of H1 2026 consolidated sales.

• Expanded global footprint with new subsidiaries in China and Vietnam in 2026; ongoing investments in production capacity for battery materials.

• Maintains AA- credit rating from major Korean agencies; robust governance and compliance systems in place.

Financial highlights

• H1 2026 consolidated revenue: KRW 1,436.97 billion, down from KRW 2,938.70 billion in FY2025.

• Operating income for H1 2026: KRW 44.39 billion, up from KRW 32.83 billion in FY2025.

• Net income attributable to owners: KRW 25.80 billion in H1 2026, down from KRW 32.26 billion in FY2025.

• Gross profit improved to KRW 91 bn in 2Q26, up KRW 41 bn year-over-year and KRW 18 bn quarter-over-quarter.

• Cash and cash equivalents at June 2026: KRW 612.28 billion, up from KRW 319.84 billion at end-2025.

Outlook and guidance

• Targeting cathode and anode utilization rates above 70% by 2027, with further increases planned for 2028.

• Continues to invest in battery materials capacity, targeting growth in EV and ESS markets despite short-term demand volatility.

• Plans further expansion in North America and Asia, with long-term supply contracts in place with major global battery and auto OEMs.

• New artificial graphite and spherical graphite plants are on track, with trial runs scheduled for 2027.

• Expansion in cathode portfolio and utilization recovery expected to drive further turnaround.