Posco Future M Energy Materials Return to Profit

The Tip Desk · September 2, 2026 · 2 min read

The battery materials business recorded an operating profit of 1.46 billion won for the first half of 2026.

Posco Future M, a producer of both anode and cathode materials, saw its energy materials division return to profitability in the first half of 2026. The segment reported an operating profit of 1.46 billion won, reversing a loss of 36.90 billion won recorded during the same period in 2025. This division remains the largest contributor to the company's top line, accounting for 53.0% of consolidated revenue at 761.51 billion won,.

Revenue across the company's three main segments declined significantly compared to the previous year. The lime and chemical business generated 447.87 billion won, while the refractories business brought in 227.59 billion won. The lime and chemical segment emerged as the most profitable area, posting an operating profit of 44.18 billion won. Conversely, the refractories business fell into the red with an operating loss of 1.25 billion won.

Concentration of revenue remains high among a few key clients. The energy materials business relies on Ultium Cells, LG Energy Solution, Samsung SDI, and SK On for 53.0% of its sales. The lime and chemical segment derives 31.2% of its revenue from Posco and OCI, while the refractories segment depends on Posco for 15.8% of its turnover.

Cash flow from operating activities improved to 189.01 billion won in the first half of 2026, compared to a deficit of 71.79 billion won in the prior year's first half. The company utilized financing to support its growth, with 448.84 billion won in new corporate bonds and 306.93 billion won in new borrowings. These funds coincide with ongoing capital expenditures, including 363.23 billion won spent on acquiring tangible assets.

Future growth is tied to the expansion of electric vehicles and energy storage systems, which the company says are growing due to government policies and carbon regulations. To strengthen its anode business, the company is increasing spherical graphite production facilities in the Saemangeum Industrial Complex and building an artificial graphite plant in Vietnam. The company also notes that its energy materials business typically operates under mid-to-long-term contracts, though actual volumes remain fluid based on customer orders and market conditions.