POSCO reports improved Q2 CY’26 performance with 5.4% growth in revenue

• Revenue rises 5.4% q-o-q to KRW 9.42 trn; crude steel output up by 0.7% to 8.88 mnt
• Carbon steel selling price rises KRW 42,000/t q-o-q to KRW 962,000/t

POSCO delivered a stronger standalone performance in Q2 CY’26 as its core steel operations recorded sequential improvements in both revenue and profitability. Higher steel shipments, improved sales realisation and a richer product mix supported revenue growth, while stable operations and ongoing cost optimisation strengthened profitability. A higher contribution from strategic products further enhanced earnings, reflecting a recovery in the company’s standalone steel business during the quarter.

Revenue improves on stronger sales realisation

POSCO’s standalone revenue increased to KRW 9.42 trillion in Q2 CY’26, up by 5.4% q-o-q from KRW 8.94 trillion and 5.3% y-o-y from KRW 8.95 trillion. Revenue growth was driven by higher steel shipments and improved sales realisation, supported by a greater contribution from higher-value strategic steel products.

Average carbon steel selling prices increased by 4.6% q-o-q to KRW 962,000/t from KRW 920,000/t, reflecting improved pricing across the company’s steel portfolio. In addition, the share of strategic products rose to 27.5% from 27.3% in the previous quarter, increasing the contribution of value-added steel products to overall sales.

Operating profit rebounds on stronger margins

Standalone operating profit increased to KRW 274 billion in Q2 CY’26, up by 28.6% q-o-q from KRW 213 billion, although it remained 46.6% lower y-o-y than KRW 513 billion reported in Q2 CY’25. The sequential improvement was primarily supported by stronger steel margins, reflecting improved sales realisation and disciplined cost management.

Operating profit margin improved to 2.9% in Q2 CY’26 from 2.4% in Q1 CY’26, although it remained below the 5.7% margin reported in Q2 CY’25. Improved operating efficiency enabled the company to translate higher revenue into stronger earnings despite only modest increases in production and shipments.

Higher production and shipments reinforce operational recovery

Crude steel production increased to 8.88 million tonnes (mnt) in Q2 CY’26, up 0.7% q-o-q from 8.82 mnt and 6.1% y-o-y from 8.37 mnt in Q2 CY’25. Steel shipments rose to 8.36 mnt, increasing 0.8% q-o-q from 8.29 mnt and 2.3% y-o-y from 8.17 mnt a year earlier. The improvement in both production and shipments reflected stable blast furnace operations and healthy execution across the company’s steelmaking facilities.

The production-to-shipment gap remained limited at around 0.52 mnt, indicating disciplined inventory management and efficient conversion of output into sales. Together with stronger sales realisation, an increasing contribution from strategic products and improved operating efficiency, these factors underscored the recovery in POSCO’s standalone steel business during Q2 CY’26.