1. POSCO M-TECH Q2 2025: A Closer Look at the Numbers
POSCO M-TECH reported an operating loss of KRW 3.2 billion, a net loss of KRW 3.6 billion, and revenue of KRW 89.3 billion for Q2 2025. While revenue saw a slight increase compared to Q1, profitability significantly declined.
2. Unpacking the Factors Behind the Poor Performance
- Steel Market Downturn: The ongoing slump in the steel market, driven by US tariff policies and global construction slowdowns, significantly impacted POSCO M-TECH’s core businesses of steel product packaging and raw materials.
- Rising Raw Material Prices & Sales Decline: Decreased sales of aluminum deoxidizers coupled with rising raw material prices further contributed to the decline in profitability.
- Increased SG&A Expenses: Despite a decline in revenue, rising selling, general, and administrative expenses exacerbated the profit squeeze.
- Unforeseen External Factors: The magnitude of the operating loss, exceeding earlier projections, suggests the influence of unforeseen external factors.
3. Navigating the Uncertainty: Investor Action Plan
Investors should approach POSCO M-TECH with caution in the short term. Closely monitor the company’s performance, track the steel market recovery, and seek expert advice before making any investment decisions. Long-term prospects should consider the company’s established relationship with POSCO and its ongoing investments in packaging automation technology.