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Research Alert: Posco Holdings Q1: Profit Surges As Battery Materials Losses Narrow Sharply

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

POSCO Holdings delivered strong Q1 2026 results with net profit surging KRW693B to KRW467B, revenue rising 6.1% Q/Q to KRW17,876B, and operating profit jumping to KRW707B from KRW13B. The turnaround was broad-based as Battery Materials losses narrowed to -KRW7B from -KRW157B and Infrastructure Business returned to KRW405B profit from a -KRW10B loss, though Steel operating profit declined 35.8% Q/Q on margin pressure. Key progress includes POSCO Argentina reaching 70% commercial utilization and securing 25kt supply agreements with SK On through 2028. The company announced a landmark JSW joint venture for a 6 Mtpa steel mill in India, its largest overseas investment with 2031 completion target. We believe POSCO's new shareholder return policy targeting 35%-40% of adjusted net profit through flexible dividends and buybacks, combined with low-carbon initiatives including a 2.5 Mtpa electrical furnace commissioning in June 2026, positions the company well for growth.

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