First Read POSCO Future M: Profit improvement, but US policy and execution risk remain

研报英文原文证据摘录

First Read POSCO Future M: Profit improvement, but US policy and execution risk remain

Global Research

30 July 2026ab

First Read

EquitiesPOSCO Future M

Profit improvement, but US policy and execution Korea

risk remain Chemicals, Specialty

12-month rating Sell

12m price target Won110,000

Q: How did the results compare vs expectations?

Revenue of Won679bn ( -10% QoQ / +3% YoY) missed both UBS (Won1,071) and

consensus (Won869bn) estimates by 37% and 22% respectively. Operating profit of Price (29 Jul 2026) Won122,100

Won26.7bn ( +51% QoQ ), however, beat UBS estimates by 46% and came in slightly RIC: 003670.KS BBG: 003670 KS

below consensus.

Trading data and key metrics

Q: What were the most noteworthy areas in the results? 52-wk range Won296,000-122,100

Market cap. Won10,860b/US$7.47b

Energy Materials ( cathode + anode) operating profit turned positive at Won3bn (0.8%

OPM) after a Won1.1bn loss in 1Q26, driven by inventory valuation gain and a Shares o/s 88.9m (ORD)

significant narrowing of anode losses on higher volume / utilization. Cathode sales Free float 36%

declined QoQ due to deferred shipments ( HMG / Ford), while anode sales recovered on Avg. daily volume ('000) 340

strong demand from overseas customers. Base Materials remains the profit anchor with Avg. daily value (m) Won71,150

operating profit rising to Won24bn (6.9% OPM) on higher lime chemical volumes and Common s/h equity (12/25E) Won4189b

wider spreads offsetting against weaker refractory materials. P/BV (12/25E) 2.6x

Net debt to EBITDA (12/25E) 7.3x

Q: Has the company's outlook/guidance changed?

EPS (UBS, diluted) (Won)

Management guides FY26 cathode volume growth of ~20% to the low 50k/t range, UBS Cons.

with 3Q26 volumes rising +20% q/q ( back to 1Q26 levels). Anode volume is expect to 12/25E (737) 51