PKX

Business Context and Reporting Period

Company: POSCO HOLDINGS INC.
Filing Type: Form 6-K (Report of Foreign Private Issuer)
Reporting Period: Second Quarter (Q2) ended June 30, 2026
Filing Date: July 30, 2026
Context: The filing presents provisional consolidated earnings prepared under K-IFRS. The data is subject to change pending final independent auditor review. The company operates across Steel, Rechargeable Battery Materials, and Infrastructure segments.

Key Financial Metrics

Note: All figures in trillions of KRW unless specified. Net Debt increased by KRW 742 billion QoQ.

Material Changes vs. Prior Periods

• Revenue Growth: Q2 2026 revenue rose 7.7% QoQ and 9.7% YoY, driven by higher selling prices and increased sales volumes in the Steel segment.
• Profitability Surge: Net profit increased 40.1% QoQ and 808.0% YoY. The YoY jump is largely due to a very low base in Q2 2025 (KRW 84 billion).
• Segment Performance:
  • Steel: Operating profit improved to KRW 403 billion (from KRW 345 billion QoQ) despite raw material cost pressures, aided by a 4.2% increase in carbon steel selling prices.
  • Rechargeable Battery Materials: Operating profit turned positive at KRW 41 billion (from a loss of KRW 7 billion QoQ), driven by inventory valuation adjustments and recovery in overseas sales.
  • Infrastructure: Operating profit grew to KRW 493 billion, supported by the Energy and Materials businesses within POSCO International.
• Balance Sheet: Total assets increased to KRW 109.7 trillion. Net debt rose to KRW 16.1 trillion, pushing the net debt-to-equity ratio to 25.1%.

Outlook, Management Commentary, and Risks

• Strategic Investments:
  • Lithium: Signed an agreement for a Direct Lithium Extraction (DLE) demo plant in Utah, USA, targeting operations in 2027. Groundbreaking occurred for a Pohang LFP cathode plant (completion Oct 2027). Acquired a 30% stake in an Australian lithium mine (MinRes JV) for $765 million.
  • Rare Gases: Completed a high-purity rare gas plant in Gwangyang to supply 52% of domestic semiconductor demand.
  • Green Steel: Completed the largest domestic Electric Arc Furnace (EAF) in Gwangyang (2.5Mtpa capacity), capable of cutting carbon emissions by 75% compared to Blast Furnace methods.
• Portfolio Management: The company aims to generate KRW 3.5 trillion in cash from divestments of non-core assets between 2024 and 2028. In Q2 2026, divestments generated KRW 475.4 billion in cash inflows.
• Risks and Contingencies:
  • Market Conditions: Forward-looking statements are subject to risks including changes in the business environment, raw material costs (oil price hikes), and foreign exchange fluctuations.
  • Operational: Impairment losses of KRW 112 billion were recorded related to the closure of 2FINEX facilities.
  • Regulatory/Trade: Overseas steel operations face challenges from EU Tariff Rate Quotas (TRQ) and weak local currencies (e.g., Indonesian rupiah).

Key Facts for Investor Verification

• Audit Status: Earnings are provisional and subject to change upon finalization of the independent auditor's review.
• Debt Trajectory: Verify the sustainability of the rising net debt (up KRW 742 billion QoQ) and the impact on the net debt-to-equity ratio (now 25.1%).
• One-Time Items: Confirm the impact of the KRW 392 billion gain from PZSS and QPSS divestments and the KRW 112 billion impairment loss on future quarters.
• Capital Expenditure: Consolidated CAPEX for the first half of 2026 was KRW 3.7 trillion; verify alignment with the stated growth strategy in battery materials and green steel.
• Divestment Targets: Monitor progress against the revised goal of generating KRW 3.5 trillion from asset sales by 2028.