- Ansons' and POSCO Holdings' Boards Approve Terms for Binding Agreement for DLE Demonstration Plant at Green River
May 13, 2026
Anson Resources and POSCO Holdings have received board approval for a binding agreement to develop POSCO's Direct Lithium Extraction ("DLE") Demonstration Plant at the Green River Lithium Project in Utah. POSCO to lead the project at its own expense including the design, construction and operation of its proprietary Direct Lithium Extraction ("DLE") Demonstration Plant POSCO to pay ~AUD $7.2 million (USD $5.2 million) non-dilutive facilitation fee to Anson. The collaboration positions Green River as a potential cornerstone asset in the emerging U.S. critical minerals and battery supply chain. During operation of the demonstration plant, the parties will evaluate broader commercial opportunities, including potential future joint investment and strategic cooperation.
NEWPORT BEACH, CA / ACCESS Newswire / May 12, 2026 / Anson Resources Limited (ASX:ASN) ("Anson" or the "Company") is pleased to announce that both POSCO Holdings Inc. ("POSCO")'s board and the Company's board have approved the terms for a definitive Demonstration Plant Agreement ("Agreement") relating to the construction and operation of a Direct Lithium Extraction ("DLE") demonstration facility at the Green River Lithium Project in the Paradox Basin, Utah, USA.
The board approvals mark a significant progression from the previously announced Memorandum of Understanding (see ASX Announcement 30 June 2025), establishing a framework under which POSCO will operate its own non-commercial DLE demonstration plant designed to validate lithium extraction at continuous industrial scale.
Under the agreement POSCO committed to setting up its DLE demo-plant to extract lithium from brines produced from the Bosydaba #1 well owned by Anson at the Green River Lithium Project. POSCO will be responsible for engineering, construction, operation and maintenance of the facility, while Anson will provide access to property, infrastructure and brine supply. POSCO will pay Anson a non-dilutive facilitation fee of AUD ~$7.2 million (USD $5.2 million).
The definitive agreement is expected to be signed before the end of Q2 2026. POSCO is expected to commence operation of the demonstration plant in 2027 and complete the work in 2028.
The two companies will continue to explore potential business cooperation opportunities, including joint investment in the Project, during the operation of the demonstration plant, as outlined in the MoU Agreement, see ASX Announcement 30 June 2025.
Strategic Importance
Demonstrates strong industry validation of Green River's low-cost lithium potential. Accelerates technical de-risking through continuous demonstration-scale testing. Positions Green River as a key participant in the emerging U.S. domestic battery materials supply chain.
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Executive Commentary
Executive Chairman & CEO, Mr. Bruce Richardson commented:
"Securing a definitive agreement with POSCO represents a transformational step forward for the Green River Lithium Project.
Moving from a non-binding MoU to a fully executed agreement underscores the strong technical confidence POSCO has in our asset and highlights the increasing strategic importance of domestic U.S. lithium supply."
POSCO Holdings commented:
"With the approval of the terms for a binding agreement, POSCO Holdings will advance validation of DLE technology in the United States and evaluate commercialisation pathways for future lithium production.
We believe collaboration with Anson Resources at Green River will contribute to strengthening the North American lithium supply chain."
Key Elements of the Definitive Agreement
Item Key Terms Project Non-commercial DLE Demonstration Plant - Green River Lithium Project Responsibility POSCO to bear cost for the design, construction, operations and maintenance for Demonstration Plant Facilitation Fee USD $5.2M Term To December 2028 Brine Supply Provided from Bosydaba #1 well with defined performance targets
About POSCO Holdings
POSCO Holdings Inc. is a leading South Korean industrial group with strategic investments across steel, energy, and battery materials. POSCO Group is developing a global supply chain to support the transition EV and has invested in a total of 93,000 tonnes of lithium production annually in Argentina and South Korea. The company has made significant investments in both brine and hard-rock lithium resources across South America and Australia and is advancing proprietary Direct Lithium Extraction (DLE) technologies to accelerate low-carbon lithium production.
This announcement has been authorized for release by the Executive Chairman and POSCO Holdings.
For further information please contact:
Bruce Richardson Will Maze
Executive Chairman and CEO Head of Investor Relations
E: info@Ansonresources.com E: investors@Ansonresources.com
Ph: +61 7 3132 7990 Ph: +61 7 3132 7990
www.Ansonresources.com Follow us on Twitter @Anson_ir
SOURCE: Anson Resources
View the original press release on ACCESS Newswire
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- Ansons' and POSCO Holdings' Boards Approve Terms for Binding Agreement for DLE Demonstration Plant at Green River
May 12, 2026 · accessnewswire.com
Anson Resources and POSCO Holdings have received board approval for a binding agreement to develop POSCO's Direct Lithium Extraction ("DLE") Demonstration Plant at the Green River Lithium Project in Utah. POSCO to lead the project at its own expense including the design, construction and operation of its proprietary Direct Lithium Extraction ("DLE") Demonstration Plant POSCO to pay ~AUD $7.2 million (USD $5.2 million) non-dilutive facilitation fee to Anson.
- ANSONS' AND POSCO HOLDINGS' BOARDS APPROVE TERMS FOR BINDING AGREEMENT FOR DLE DEMONSTRATION PLANT AT GREEN RIVER
May 12, 2026
ANSON RESOURCES AND POSCO HOLDINGS HAVE RECEIVED BOARD APPROVAL FOR A BINDING AGREEMENT TO DEVELOP POSCO'S DIRECT LITHIUM EXTRACTION ("DLE") DEMONSTRATION PLANT AT THE GREEN RIVER LITHIUM PROJECT IN UTAH. POSCO TO LEAD THE PROJECT AT ITS OWN EXPENSE INCLUDING THE DESIGN, CONSTRUCTION AND OPERATION OF ITS PROPRIETARY DIRECT LITHIUM EXTRACTION ("DLE") DEMONSTRATION PLANT POSCO TO PAY ~AUD $7.2 MILLION (USD $5.2 MILLION) NON-DILUTIVE FACILITATION FEE TO ANSON.
- POSCO Holdings Inc (PKX) Stock Down 3.4% but Still Overvalued -- GF Score: 72/100
May 11, 2026 · gurufocus.com
On May 11, 2026, POSCO Holdings Inc (PKX) shares fell 3.4% to a current price of $88.61. The stock has demonstrated significant volatility, trading within a 52-
- POSCO Holdings: Strong Momentum Continues After Impressive Q1 Earnings Report (Technical Analysis)
May 6, 2026 · seekingalpha.com
POSCO Holdings Inc. is upgraded to 'Buy' following robust Q1 earnings and resilient performance amid geopolitical headwinds. PKX's Q1 net profit surged, driven by strong infrastructure and Rechargeable Battery Materials, with POSCO Argentina achieving its first monthly KRW profit. Long-term and intermediate technical indicators signal sustained bullish momentum, with potential resistance near $130 per share.
- POSCO Holdings: Solid Performance And Favorable Prospects
May 5, 2026 · seekingalpha.com
I maintain my "Buy" rating for POSCO after analyzing its above-expectations results and positive financial outlook. PKX's 1Q2026 EBIT rose 24.3% YoY and beat the consensus by 20.3%, thanks to the outperformance of its battery materials and infrastructure units. I am predicting another substantial growth in its operating income for full-year FY2026; the key lies with the steel business' likely financial improvement driven by price hikes and asset rationalization.
- Reddit Upgraded, Spotify Downgraded: Updated Rankings on Top Blue-Chip Stocks
May 4, 2026
During these busy times, it pays to stay on top of the latest profit opportunities. And today’s blog post should be a great place to start. After taking a close look at the latest data on institutional buying pressure and each company’s fundamental health, I decided to revise my Stock Grader recommendations for 123 big blue chips. Chances are that you have at least one of these stocks in your portfolio, so you may want to give this list a skim and act accordingly.
This Week’s Ratings Changes:
Upgraded: Strong to Very Strong
Symbol Company Name Quantitative Grade Fundamental Grade Total Grade AM Antero Midstream Corp. A C A DAR Darling Ingredients Inc A B A ET Energy Transfer LP A C A ETR Entergy Corporation A C A FTAI FTAI Aviation Ltd. A C A GOOGL Alphabet Inc. Class A A B A IMO Imperial Oil Limited A C A PAA Plains All American Pipeline, L.P. A C A POWL Powell Industries, Inc. A B A RIO Rio Tinto plc Sponsored ADR A C A SANM Sanmina Corporation A B A TEVA Teva Pharmaceutical Industries Limited Sponsored ADR A B A TTE TotalEnergies SE A B A VTR Ventas, Inc. A C A
Downgraded: Very Strong to Strong
Symbol Company Name Quantitative Grade Fundamental Grade Total Grade AEM Agnico Eagle Mines Limited A B B APG APi Group Corporation A C B ATI ATI Inc. A B B AU Anglogold Ashanti PLC A C B EQT EQT Corporation B B B KLAC KLA Corporation A C B RGC Regencell Bioscience Holdings Ltd. A C B VIV Telefonica Brasil SA Sponsored ADR A B B WPM Wheaton Precious Metals Corp B B B
Upgraded: Neutral to Strong
Symbol Company Name Quantitative Grade Fundamental Grade Total Grade BEN Franklin Resources, Inc. B B B DDOG Datadog, Inc. Class A B C B FMX Fomento Economico Mexicano SAB de CV Sponsored ADR Class B B B B GD General Dynamics Corporation B C B ILMN Illumina, Inc. B C B LIN Linde plc B C B LLY Eli Lilly and Company C B B LMT Lockheed Martin Corporation B C B NTRA Natera, Inc. B C B O Realty Income Corporation B C B PKX POSCO Holdings Inc. Sponsored ADR B C B RDDT Reddit, Inc. Class A C B B ROKU Roku, Inc. Class A B B B TFII TFI International Inc. B C B TXT Textron Inc. B C B
Downgraded: Strong to Neutral
Symbol Company Name Quantitative Grade Fundamental Grade Total Grade AWK American Water Works Company, Inc. B D C BALL Ball Corporation C C C BCH Banco de Chile Sponsored ADR B C C BIP Brookfield Infrastructure Partners L.P. B D C BSBR Banco Santander (Brasil) S.A. Sponsored ADR C B C CEG Constellation Energy Corporation B D C CHT Chunghwa Telecom Co., Ltd Sponsored ADR C C C CINF Cincinnati Financial Corporation C B C CVNA Carvana Co. Class A C B C DLR Digital Realty Trust, Inc. C B C DLTR Dollar Tree, Inc. C B C DOV Dover Corporation C C C EXC Exelon Corporation B C C FUTU Futu Holdings Ltd. Sponsored ADR Class A C B C HLT Hilton Worldwide Holdings Inc. B C C IHG InterContinental Hotels Group PLC Sponsored ADR C C C KNX Knight-Swift Transportation Holdings Inc. Class A B D C MAR Marriott International, Inc. Class A B D C ONTO Onto Innovation, Inc. B D C REGN Regeneron Pharmaceuticals, Inc. C C C RGLD Royal Gold, Inc. B C C SPG Simon Property Group, Inc. C B C TRV Travelers Companies, Inc. C B C WM Waste Management, Inc. C C C
Upgraded: Weak to Neutral
Symbol Company Name Quantitative Grade Fundamental Grade Total Grade AFRM Affirm Holdings, Inc. Class A D B C AXP American Express Company D C C BLK BlackRock, Inc. D C C CNC Centene Corporation C B C EG Everest Group, Ltd. D C C F Ford Motor Company D B C IEX IDEX Corporation C C C MDLZ Mondelez International, Inc. Class A D C C OMC Omnicom Group Inc C C C PAG Penske Automotive Group, Inc. C C C PSA Public Storage D C C PSKY Paramount Skydance Corporation Class B C D C PSO Pearson PLC Sponsored ADR D C C QCOM QUALCOMM Incorporated C B C RCL Royal Caribbean Group D C C SBUX Starbucks Corporation C B C TROW T. Rowe Price Group, Inc. C C C UL Unilever PLC Sponsored ADR D C C UNH UnitedHealth Group Incorporated C C C UNM Unum Group D C C XYZ Block, Inc. Class A C C C
Downgraded: Neutral to Weak
Symbol Company Name Quantitative Grade Fundamental Grade Total Grade ALLE Allegion Public Limited Company D C D APTV Aptiv PLC D C D DB Deutsche Bank Aktiengesellschaft D C D DHI D.R. Horton, Inc. D C D ECL Ecolab Inc. D C D FTV Fortive Corp. D C D HBAN Huntington Bancshares Incorporated D C D HLN Haleon PLC Sponsored ADR D C D HOOD Robinhood Markets, Inc. Class A D C D ICE Intercontinental Exchange, Inc. D B D MSCI MSCI Inc. Class A D C D PFGC Performance Food Group Co D C D PHG Koninklijke Philips N.V. Sponsored ADR D B D PHM PulteGroup, Inc. D D D SPOT Spotify Technology SA F B D SUI Sun Communities, Inc. D D D VRTX Vertex Pharmaceuticals Incorporated D C D WY Weyerhaeuser Company D B D
Upgraded: Very Weak to Weak
Symbol Company Name Quantitative Grade Fundamental Grade Total Grade AVB AvalonBay Communities, Inc. F C D CRBG Corebridge Financial, Inc. F C D CSGP CoStar Group, Inc. F B D DEO Diageo plc Sponsored ADR F C D FICO Fair Isaac Corporation F C D KHC Kraft Heinz Company F D D PAYX Paychex, Inc. F C D TEAM Atlassian Corp Class A F B D
Downgraded: Weak to Very Weak
Symbol Company Name Quantitative Grade Fundamental Grade Total Grade BR Broadridge Financial Solutions, Inc. F C F CDW CDW Corporation F C F CHKP Check Point Software Technologies Ltd. F C F CTSH Cognizant Technology Solutions Corporation Class A F C F EQR Equity Residential F D F GDDY GoDaddy, Inc. Class A F C F GPN Global Payments Inc. F D F HD Home Depot, Inc. F C F MKL Markel Group Inc. F D F NOW ServiceNow, Inc. F C F NVR NVR, Inc. F D F PGR Progressive Corporation F C F SYK Stryker Corporation F C F UBER Uber Technologies, Inc. F C F
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Louis Navellier
Editor, Market 360
The post Reddit Upgraded, Spotify Downgraded: Updated Rankings on Top Blue-Chip Stocks appeared first on InvestorPlace.
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- POSCO Q1 Earnings Call Highlights
May 2, 2026
POSCO logo
Key Points
Despite geopolitical volatility, POSCO reported a quarter-to-quarter improvement with consolidated revenue of KRW 17.9 trillion, operating profit around KRW 710 billion and EBITDA of KRW 1.8 trillion, reflecting normalization from one-off headwinds in the prior quarter. Rechargeable battery materials performance sharpened as higher lithium prices and ramped production led POSCO Argentina to its first monthly profit in March, narrowed losses by about KRW 150 billion QoQ, and set expectations for the unit’s first quarterly profit in Q2 while securing a 25,000‑ton supply deal with SK On. Management accelerated steel decarbonization and restructuring — retiring aging FINEX capacity, bringing a 2.5 million‑ton EAF online in June and starting a 300,000‑ton HyREX demo — announced a 50/50 JV with JSW for a 6Mt integrated mill targeted for 2031, and shifted to a performance‑linked shareholder return policy targeting 35–40% payout of adjusted net income. Interested in POSCO? Here are five stocks we like better.
POSCO (NYSE:PKX) executives said first-quarter 2026 results improved from the prior quarter despite heightened volatility tied to geopolitical tensions, while the company advanced major steel decarbonization projects and outlined a new performance-linked shareholder return framework.
Quarterly results and macro headwinds
Kim Seung-Jun, Head of Financial IR Division at POSCO Holdings, said the quarter was shaped by “the U.S.-Iran war” disrupting the energy supply chain and creating fluctuations in financial markets, including “unstable exchange rates.” Despite those headwinds, Kim said POSCO Holdings posted consolidated revenue of KRW 17.9 trillion and operating profit of KRW 710 billion, with both metrics improving versus the previous quarter.
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Han Young-Ah, Head of IR Office, provided additional financial detail, saying consolidated revenue rose by “around KRW 1 trillion” quarter over quarter and operating profit totaled KRW 707 billion. Han also cited EBITDA of KRW 1.8 trillion, up KRW 721 billion quarter over quarter, and said results reflected a normalization from the prior quarter, which had been weighed down by one-off factors.
Lithium and battery materials: ramp-up drives narrowing losses
Management highlighted a sharp improvement in rechargeable battery materials performance, helped by higher lithium prices and increased production. Kim Seung-Jun said lithium prices rose during the quarter, boosting performance at lithium production subsidiaries and “significantly reducing losses.” He pointed to POSCO Argentina’s ramp-up and said the operation recorded its “first-ever monthly KRW profit” in March, adding that the company expected the momentum to continue into the second quarter and anticipated POSCO Argentina’s “first-ever quarterly KRW profit” in the second quarter.
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Han said rechargeable battery materials losses narrowed by about KRW 150 billion quarter over quarter, driven by a higher operating rate at the Argentina lithium plant and improvements at POSCO Pilbara Lithium Solution, including “the rebound in lithium prices and reversal of inventory valuation losses.”
On operations, Han said POSCO Argentina was entering the commercial production phase for its phase I plant and the operating rate reached around 70% in March. She also noted a long-term supplier agreement with SK On for 25,000 tons was signed during the quarter. Phase II construction is progressing toward completion in October, with additional brine resource 확보 and test commissioning underway, according to Han.
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In Q&A, Yoon Tae-il, Head of Energy Materials Business Management Office, attributed POSCO Argentina’s profitability improvement primarily to higher utilization and a shift away from low-price contracts signed when lithium prices were depressed. He said customer certification is underway and selling prices are now “very much close to the index level.” Yoon added that phase II depreciation would begin in October, and he expected phase II to generate about KRW 15 billion in losses, but said phase I and II combined “will definitely turn to profit this year.”
Executives also discussed spreads in the lithium concentrate business. Han said POSCO Pilbara Lithium Solution cut losses to KRW 3 billion from KRW 50 billion, but cautioned performance would be influenced by spreads between lithium and spodumene. Yoon later said hard-rock lithium supply is tight—particularly tied to ESS demand—and that higher spodumene prices have been a key driver of margin pressure.
Steel business: cost pressure, restructuring, and low-carbon transition
Steel results improved modestly at the group level, but executives emphasized continuing cost pressure. Han said steel business profit increased by KRW 91 billion quarter over quarter, though at POSCO, higher FX rates, logistics costs, and raw material prices kept margins under pressure. She said overseas steel results improved, citing recovery in India and Vietnam and a base effect tied to the prior loss at Zhangjiagang, which was later divested.
Han also said POSCO’s first-quarter operating profit declined quarter over quarter to KRW 213 billion, even as sales volume recovered and utilization normalized. She attributed the decline to higher raw material prices, rising FX, and freight costs linked to the Iran war, adding that cost pressure would remain a burden in the second quarter.
Management framed 2026 as a year when strategic changes in steel are “coming to fruition.” Kim Seung-Jun said the company finalized investment actions involving PDSS, described as an underperforming China subsidiary, and retired No. 2 FINEX to reduce high costs tied to aging facilities. He said the company’s largest new electrical furnace with 2.5 million tons of capacity would begin operation in June to expand its low-carbon production system. He also said a 300,000-ton HyREX demo plant had broken ground and permits were obtained for the Pohang HyREX plant site.
Hong Yoon-Sik, Head of Steel Business Management Office, addressed expected cost impact from the EAF start-up. He said costs would be higher than initially expected due to demand conditions and a phased utilization plan. Hong estimated that at a 10% utilization rate, annual costs would rise by about KRW 70 billion to KRW 80 billion, adding that higher selling prices and a potential premium could offset some of the impact.
India JV: 50/50 integrated steel mill targeted for 2031 completion
POSCO Holdings also detailed its integrated steelworks joint venture with JSW in India. Kim Gwang-mu, Head of Strategic Investment Division, said POSCO and JSW signed a joint venture agreement on April 20 for an integrated steel mill. He described the governance structure as a 50/50 JV, with each company appointing three directors and alternating CEO appointments for a five-year term.
Kim said the project targets a 6 million-ton, blast furnace-based facility focused on high-premium steel products. Because automotive steel products require customer certification, Kim said the JV plans to initially supply construction steel to generate profit before moving into automotive steel sheets. He also said POSCO would initially export some materials from Korea for processing in India, but the longer-term goal is to localize sourcing. Kim said the site in Odisha offers raw material access and infrastructure advantages, and emphasized that prior site acquisition reduces permitting and licensing risk compared with past efforts.
On timing, Kim said construction is expected to be completed by 2031. In response to later questions, he said the plan is to “set up by 2031” and begin operation in 2032.
When asked how the JV might affect exports to POSCO Maharashtra, Kim said exports of hot-rolled products would likely continue at similar volumes until the JV begins operating, and that exports should not be impacted initially because automotive steel sheets would not be produced immediately.
Kim also argued the project’s competitiveness would come from low-cost labor and lower-cost iron ore. He said Indian iron ore prices are “about 50%-60% lower” than global index prices and described a 30% tariff meant to discourage exports. He added that Odisha’s proximity to mines and JSW’s capabilities should support stable procurement.
Shareholder return: shift to earnings-linked policy
POSCO Holdings outlined a “third interim shareholder return policy” beginning in 2026. Kim Seung-Jun said the company intends to move toward an earnings-based, performance-linked policy, targeting a 35% to 40% shareholder return ratio based on net income attributable to controlling interests, using a mix of cash dividends and share buybacks and cancellations.
Han said the prior three-year framework (2023–2025) delivered KRW 3.5 trillion in shareholder returns, including KRW 2.3 trillion in cash dividends and KRW 1.2 trillion in canceled treasury shares. She said the company plans to base returns on “adjusted net profit” excluding non-recurring gains and losses to improve payout visibility and sustainability as strategic investments increase.
During Q&A, executives also addressed the operational impacts of Middle East tensions. Ha Seong-Yeol, Head of Finance at POSCO, said POSCO is among the most impacted group companies due to FX, oil prices, and LNG prices. He said POSCO is shifting settlement currency and seeking to bring in more dollars, diversifying LNG supply routes such as to Indonesia, and working to raise energy efficiency, while acknowledging it would be difficult to offset all cost increases and some would need to be reflected in product pricing.
Kim Seung-Jun added that while FX has a negative impact on POSCO, POSCO International and POSCO Future M can benefit from FX fluctuations, and he estimated those positives cover “about 50%” of losses experienced at POSCO from FX moves.
About POSCO (NYSE:PKX)
POSCO (NYSE: PKX) is a South Korea–based integrated steel producer founded in 1968 as Pohang Iron and Steel Company. Headquartered in Pohang, the company grew rapidly as part of South Korea's industrialization program and developed large, integrated steelworks—most notably in Pohang and Gwangyang—that helped establish POSCO among the world's largest steelmakers. It is structured as a diversified industrial group with steelmaking at its core and a range of downstream and trading businesses.
The company's primary activities include ironmaking and steelmaking, producing a wide array of steel products such as hot-rolled and cold-rolled sheets, coated steels, plates, stainless and special steels, long products (bars and wire rods), and seamless pipes.
The article "POSCO Q1 Earnings Call Highlights" was originally published by MarketBeat.
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- POSCO Holdings Inc (PKX) Q1 2026 Earnings Call Highlights: Strong Revenue Growth and Strategic ...
May 1, 2026
This article first appeared on GuruFocus.
Consolidated Revenue: KRW17.9 trillion, an increase from the previous quarter. Operating Profit: KRW710 billion, showing improvement against the previous quarter. EBITDA: KRW1.8 trillion, up KRW721 billion quarter-over-quarter. Steel Business Profit: Increased by KRW91 billion. Rechargeable Battery Materials Loss Reduction: Narrowed by KRW150 billion quarter-over-quarter. Infrastructure Business Profit Increase: KRW415 billion quarter-over-quarter. POSCO EMC Operating Profit: KRW53 billion, turning to profit from previous losses. POSCO Argentina Lithium Plant Operating Rate: Reached around 70% as of March. POSCO Pilbara Lithium Solution Loss Reduction: Reduced to KRW3 billion from KRW50 billion. Shareholder Return Policy: Targeting a 35% to 40% shareholder return ratio based on adjusted net profit. POSCO Q1 Operating Profit: KRW213 billion, with stable selling prices but higher raw material costs. POSCO Future M Revenue and Profit: Recorded higher revenue and operating profit. POSCO International Profit Growth: Increased profits in both energy and trading businesses.
Warning! GuruFocus has detected 14 Warning Signs with PKX. Is PKX fairly valued? Test your thesis with our free DCF calculator.
Release Date: April 30, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
POSCO Holdings Inc (NYSE:PKX) recorded consolidated revenue of KRW17.9 trillion and KRW710 billion in operating profits, showing improvements from the previous quarter. The lithium production subsidiaries, particularly in Argentina, have significantly reduced losses and recorded their first-ever monthly profit in March. POSCO International saw an increase in steel exports and demand recovery in the gas and energy sectors, contributing to profit growth. The strategic shift in the steel business is progressing, with the divestment of underperforming subsidiaries and the expansion of low-carbon production systems. POSCO Holdings Inc (NYSE:PKX) plans to enhance shareholder returns with a performance-linked policy, aiming for a 35% to 40% shareholder return ratio.
Negative Points
The US-Iran war has disrupted the energy supply chain, leading to unstable exchange rates and increased raw material costs, squeezing profits. Higher FX rates, logistics costs, and raw material prices have put pressure on margins in the steel business. The geopolitical risk in the Middle East and rising input costs due to FX and oil price hikes are expected to continue impacting profits in the short term. The lithium business faces challenges with rising raw material costs, particularly spodumene prices, which could squeeze profit margins. Direct employment of subcontractors may lead to increased SG&A costs, impacting overall expenses.
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Q & A Highlights
Q: Regarding the JV agreement in India, what will happen to POSCO Maharashtra after the JV goes into effect? A: My name is Kwin Kwang Moo from the Strategy Investment Division. Until the JV goes into effect, hot roll products will continue to be exported at the same volume. Once the JV is operational, we will initially supply non-automotive steel products, and exports will not be impacted.
Q: How does the Iran situation and the Strait of Hormuz impact your business, especially in terms of exports and FX? A: Ha Jong Yeo, Finance Office Head, explained that the Iran war impacts POSCO due to FX, oil price hikes, and LNG price increases. Efforts are being made to bring in more dollars and diversify LNG supply routes. However, some cost increases will need to be passed on to product prices.
Q: What are your expectations for the lithium business profits this year? A: The Head of Finance at POSCO stated that the lithium brine project in Argentina is expected to turn to profit from May. For lithium concentrates, the raw material costs have risen, but there is an expectation of narrowing the gap in the second half, leading to profitability.
Q: Can you elaborate on the dramatic earnings improvement in POSCO Argentina's lithium business? A: The Energy Materials Office explained that the improvement is due to increased utilization rates and competitive contracts signed when lithium prices were low. Phase 2 will impact profitability from October, with combined operations expected to turn to profit this year.
Q: What competitive edge does POSCO have in the Indian steel market, given the increasing competition? A: Kim Kang Moo, Head of Strategic Investment Division, highlighted that India's steel demand is expected to grow significantly. POSCO's competitive edge lies in high-end premium steel, which will differentiate it in the market.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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- POSCO Holdings Q1 Operating Income Rises
Apr 30, 2026
(RTTNews) - POSCO Holdings Inc (PKX, PIDD.L) reported first quarter net income attributable to shareholders of parent company of 467 billion Korean won compared to 302 billion won, last year. Operating income increased to 707 billion Korean won from 568 billion won.
First quarter sales were 17.88 trillion Korean won, compared to 17.44 trillion won, an increase of 2.5%.
Shares of POSCO Holdings are trading at 4,60,000 Korean won, down 1.92%.
For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
