Seoul: POSCO Holdings Inc., South Korea's leading steelmaker, announced a significant 46.8 percent drop in net profit for 2025 compared to the previous year, largely due to a slowdown in its construction business and the rechargeable battery materials sector. The company's net profit decreased to 504.4 billion won (US$354 million) from 947.58 billion won the year before, as per a regulatory filing.

According to Yonhap News Agency, the filing highlighted that one-off losses in the construction sector and an extended slump in the rechargeable battery materials market negatively impacted earnings. Operating profit also saw a decline, dropping 15.9 percent to 1.82 trillion won from 2.17 trillion won, while sales fell 4.9 percent to 69.09 trillion won from 72.68 trillion won.

Despite the challenges, POSCO's main steelmaking affiliate reported improved annual results. On a parent-only basis, POSCO's net profit saw a 20.6 percent increase to 1.3 trillion won. Operating profit rose 28.6 percent to 2.22 trillion won, though sales experienced a slight decline of 2.4 percent to 43.55 trillion won. The improvement was attributed to declining raw material costs, cost-cutting initiatives, and an increase in value-added steel product sales.

POSCO Holdings is taking steps to drive future growth by securing 1.8 trillion won through the sale of low-profit and non-core assets. The company plans to continue its business restructuring efforts to secure an additional 1 trillion won by 2028.