POSCO Holdings Reports 39.4% Decline in FY2025 Net Income
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 29 2026
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Should l Buy PKX?
Source: NASDAQ.COM
- Net Income Decline: POSCO Holdings reported a net income of 660 billion won for FY2025, a significant 39.4% decrease compared to the previous year, indicating a notable weakening in profitability that may impact investor confidence moving forward.
- Operating Income Pressure: The pre-tax income from continuing operations was 1.11 trillion won, down 11.2% year-over-year, reflecting pressure on core business profitability that may necessitate strategic adjustments to address market challenges.
- Revenue Decrease: Operating income for FY2025 was 1.83 trillion won, a 15.7% decline, suggesting difficulties in sales and market demand that could hinder overall business growth prospects.
- Sales Drop: FY2025 sales totaled 69.09 trillion won, down 5.0% from last year, highlighting intensified market competition and weak demand, which may prompt the company to reassess its market strategies to regain growth.
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Analyst Views on PKX
About PKX
Posco Holdings Inc, formerly Posco, is a Korea-based company principally engaged in the manufacture and distribution of steel products. The Company operates its business through four segments. The Steel segment produces and sells steel products such as hot rolled steel, cold rolled steel, stainless steel, among others. The Trading segment engages in the global trade, including the export and import of steel products. The Engineering and Construction (E&C) segment plans, designs and builds industrial plants, civil engineering projects, commercial and residential buildings. The Other segment is engaged in the power plants, information and communication related services and other businesses.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Net Income Decline: POSCO Holdings reported a net income of 660 billion won for FY2025, a significant 39.4% decrease compared to the previous year, indicating a notable weakening in profitability that may impact investor confidence moving forward.
- Operating Income Pressure: The pre-tax income from continuing operations was 1.11 trillion won, down 11.2% year-over-year, reflecting pressure on core business profitability that may necessitate strategic adjustments to address market challenges.
- Revenue Decrease: Operating income for FY2025 was 1.83 trillion won, a 15.7% decline, suggesting difficulties in sales and market demand that could hinder overall business growth prospects.
- Sales Drop: FY2025 sales totaled 69.09 trillion won, down 5.0% from last year, highlighting intensified market competition and weak demand, which may prompt the company to reassess its market strategies to regain growth.
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- Earnings Overview: POSCO Holdings reported a GAAP EPS of KRW 8,126 for FY 2025, with total revenue at KRW 69,095 billion, reflecting a 4.9% year-over-year decline, indicating resilience amid market fluctuations.
- Capital Allocation Strategy: The company emphasizes the importance of capital allocation, aiming to enhance long-term profitability through optimized resource distribution, despite facing short-term revenue challenges.
- Investment Activity: POSCO Holdings acquired a 30% stake in Mineral Resources' Australian lithium unit for $765 million, which not only strengthens its position in the lithium battery materials market but also provides strategic support for the future electric vehicle supply chain.
- Market Rating: Seeking Alpha's Quant Rating highlights POSCO Holdings' market performance, prompting investors to closely monitor its future financial results and strategic adjustments.
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- Earnings Announcement: POSCO Holdings is set to release its FY earnings report on January 29 before market open, drawing significant attention from investors regarding its performance in the current economic climate.
- Earnings Expectations: The consensus EPS estimate stands at $3.81, with revenue expectations at $50.18 billion, indicating a cautious outlook from investors regarding the company's future growth potential.
- Estimate Revisions: Over the past three months, EPS estimates have seen no upward revisions and one downward revision, while revenue estimates have faced 18 downward revisions, reflecting market concerns about POSCO's future performance.
- Strategic Partnership: Recently, POSCO acquired a 30% stake in Mineral Resources' Australian lithium unit for $765 million, highlighting its strategic positioning in the lithium battery materials sector to enhance competitiveness in the growing renewable energy market.
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- Agreement Signing: POSCO Mobility Solutions, Yaskawa Electric, and POSCO DX signed a tripartite agreement on January 14 in Cheonan to accelerate advanced automation in global mobility parts operations, enhancing production efficiency.
- Robotic System Introduction: The new system will support the production of drive motor cores, expected to improve safety, reduce manual workload, and boost production speed, aiding the manufacturing of critical components for electric and hybrid vehicles.
- International Expansion: The automation rollout will cover plants in Cheonan and Pohang, as well as international facilities in Poland, Mexico, and India, further enhancing POSCO's competitiveness in the global market.
- Technical Integration and Support: POSCO DX will oversee system design and integration to ensure seamless compatibility with existing production lines, while Yaskawa will provide high-precision robots and technical support, facilitating the company's transition to intelligent factories.
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- Revenue Forecast Increase: At the 44th Annual J.P. Morgan Healthcare Conference, Moderna announced an expected revenue of approximately $1.9 billion for 2025, which is $100 million above the previously communicated midpoint, enhancing investor confidence and driving stock price up.
- Operating Expense Improvement: The company also lowered its projected GAAP operating expenses for 2025 by $200 million, demonstrating improved cost control capabilities that lay a solid foundation for future profitability.
- Increased Cash Balance: Moderna anticipates an end-of-year cash balance of approximately $8.1 billion, providing strong support for the company's R&D and market expansion efforts, further solidifying its market position.
- Strong Stock Performance: Following the positive news, Moderna's stock surged 12.8% to $38.20 on Tuesday, reflecting market optimism regarding its future growth potential.
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- Earnings Downgrades: As earnings season approaches, analysts have broadly downgraded earnings expectations for materials companies, with Packaging Corporation of America (PKG) rated the lowest, indicating a lack of market confidence in its near-term performance.
- Rating Distribution: Among large-cap materials firms, FRPM International (RPM) and PPG Industries (PPG) received grades of D- and D respectively, suggesting a pessimistic outlook from analysts that could impact investor sentiment.
- Industry Trends: Overall, International Paper (IP) and POSCO Holdings (PKX) both received D grades, reflecting the challenges faced by the materials sector in the current economic climate, potentially leading to capital outflows.
- Market Performance: While the materials sector is expected to outperform the energy sector in 2026, the current earnings downgrades may affect short-term investment decisions, particularly among companies with weaker earnings momentum.
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