UBS Korea Summit 2025: Key Analysis of Hyundai Steel’s IR

On August 26, 2025, Hyundai Steel presented its Q2 earnings and business performance at the UBS Korea Summit 2025.

1. What caused the Q2 earnings slump?

A combination of factors, including a sluggish steel market, declining steel prices, and rising raw material costs, led to a 3.9% year-on-year decrease in sales to KRW 11.509 trillion, a 48.4% drop in operating profit to KRW 82.74 billion, and a net loss of KRW 16.994 billion.

2. What is Hyundai Steel’s future growth strategy?

  • US Electric Arc Furnace Construction: With an investment of approximately USD 5.8 billion, the company aims to commence commercial production in early 2029, targeting the North American market and establishing a low-carbon steel production base.
  • Eco-friendly Investments: Hyundai Steel is enhancing its competitiveness through investments in eco-friendly facilities and process improvements, such as installing CDQ, LNG self-generation, and adopting an electric arc furnace-blast furnace hybrid process.

3. What should investors pay attention to?

  • Earnings Recovery Visibility: Investors need to assess the company’s specific plans and timeline for earnings improvement.
  • Success Potential of the US Investment: A thorough analysis of the investment progress, projected profitability, and risk management strategies is essential.
  • Response to Macroeconomic Changes: Understanding the company’s strategies to address fluctuations in steel market conditions, raw material prices, exchange rates, and interest rates is crucial.

Conclusion: Seeking Investment Opportunities with a Long-Term Perspective

This IR was a significant event providing insights into Hyundai Steel’s future. Investors should focus on the long-term growth potential rather than the short-term earnings slump when formulating their investment strategies.