POSCO (005490.KS) Q1 2026: Profit Surges 24% as Debt Swells ₩1.8T
Operating margins recover to 3.95% on cost discipline and segment improvement, but cash flow turns negative and net borrowings rise ₩1.77 trillion in a single quarter.
Source: Q1 2026 Quarterly Report (분기보고서) — Filed May 15, 2026 with DART (rcept_no 20260515000988) | Consolidated Financial Statements | Unit: ₩ billions
POSCO Holdings posted consolidated operating profit of ₩706.8 billion in Q1 2026, a 24.3% year-on-year advance that lifted the operating margin from 3.26% to 3.95% — the strongest reading in several quarters and a credible early signal that the steel cycle is lifting from its floor. Net profit attributable to controlling shareholders surged 54.6% to ₩467.2 billion, amplified by a near-halving of net financial expense and a ₩26.1 billion increase in equity-method income, with basic EPS reaching ₩6,178 against ₩3,998 a year earlier. Yet the headline recovery coexists with a deterioration in cash quality that demands equal attention: operating cash flow swung from a ₩668.8 billion surplus to a ₩359.3 billion deficit, net borrowings climbed ₩1.77 trillion within a single quarter, and free cash flow deepened to negative ₩1.44 trillion. The profit picture has turned; the cash and balance sheet picture has not.
