1. POSCO Steelrion H1 2025 Earnings: Key Takeaways

A global economic slowdown and sluggish downstream industries have led to a decline in POSCO Steelrion’s revenue and operating profit for H1 2025. While Q2 showed slight improvement over Q1, profitability remains a key concern.

1.1 Key Performance Indicators

  • Revenue: KRW 561.3 billion (Slight YoY decrease)
  • Operating Profit: KRW 17.4 billion (YoY decrease)
  • Operating Margin: 3.10% (YoY decline)

Key factors contributing to the decline include rising raw material costs, increased fixed costs, and intensifying competition.

2. Market Analysis: Opportunities Amidst Uncertainty

The steel industry faces challenges due to a global economic slowdown and concerns over Chinese oversupply. However, a weaker Korean Won could provide a boost to export competitiveness.

3. Fundamental Analysis: Positive vs. Negative Factors

3.1 Positive Factors

  • Focus on high-value-added products (PosART, fireproof/antibacterial steel sheets)
  • Expansion into overseas markets (Myanmar, Southeast Asia)
  • Strengthening ESG management and improving financial soundness

3.2 Negative Factors

  • Global economic uncertainty and raw material price volatility
  • Intensifying competition and geopolitical risks

4. Investment Strategy: A Cautious Approach

POSCO Steelrion is striving to secure growth drivers amidst a challenging market through high-value-added products and overseas expansion. While short-term profitability pressures may persist, the long-term outlook remains positive. Investors should monitor macroeconomic indicators and the recovery of downstream industries closely and maintain a cautious investment approach.