1. POSCO Holdings H1 2025: What Happened?
POSCO Holdings experienced significant year-over-year declines in sales, operating profit, and net income in the first half of 2025. The global economic slowdown, weak steel demand, and increasing cost burdens were the primary factors. The decline in profitability was particularly pronounced in the steel division.
2. Why These Results?
A combination of external factors like the global economic slowdown and US tariffs, along with internal factors such as weak sales and cost pressures in the steel division and initial investment costs in the secondary battery materials division, contributed to these results. However, efforts towards future growth, including investments in the secondary battery materials business and share buybacks, are ongoing.
3. US Electric Arc Furnace Investment: Opportunity or Risk?
The potential investment in a US electric arc furnace with Hyundai Motor presents both opportunities and risks. It offers the chance to strengthen POSCO Holdings’ position in the electric vehicle supply chain and expand its presence in the North American market. However, the substantial investment costs and business uncertainties pose significant risks. While positive in the long term, a cautious approach is necessary.
- Positive Aspects: Expansion into the EV market, increased North American market share, enhanced eco-friendly technology competitiveness
- Potential Risks: Significant investment costs, business uncertainties, timing concerns
4. Action Plan for Investors
Despite short-term challenges, POSCO Holdings possesses long-term growth potential. Investors should consider the following strategies:
- Develop a long-term investment strategy
- Monitor macroeconomic indicators and investment uncertainties
- Utilize a diversified buying strategy and assess financial soundness
- Closely monitor the progress of the US investment