POSCO Future M lifts nine-month operating profit
The battery materials producer reported 126 billion won in operating profit for the first nine months of 2026.
POSCO Future M reported higher operating profit for the first nine months of 2026 as consolidated revenue fell to 2.27 trillion won from 2.38 trillion won a year earlier. The battery materials and industrial materials producer recorded higher earnings in its energy materials and lime and chemical businesses, while its refractories business moved to a loss.
The increase in operating profit from 84.6 billion won came alongside a decline in energy materials revenue, the largest contributor to sales. The segment sells cathode and anode materials used in batteries, with customers including LG Energy Solution, Ultium Cells and Samsung SDI. Its nine-month revenue fell to 1.22 trillion won from 1.35 trillion won, but its operating profit rose to 53.3 billion won from 24.2 billion won.
Energy materials sales also declined in the third quarter alone, to 460 billion won from 533 billion won a year earlier. Its profit from continuing operations increased to 51.8 billion won from 47.4 billion won. Across all reported segments, third-quarter revenue fell to 835 billion won from 875 billion won, while profit from continuing operations rose to 82.1 billion won from 66.7 billion won.
The lime and chemical business provided another source of earnings growth over the nine months. Its revenue rose to 722 billion won from 643 billion won, and operating profit increased to 74.2 billion won from 42.6 billion won. The business makes quicklime, operates chemical plants under contract and sells chemical products.
Refractories moved in the other direction. The division, which manufactures refractory products and maintains industrial furnaces, posted a nine-month operating loss of 925 million won, compared with a profit of 17.7 billion won a year earlier. Revenue fell to 329 billion won from 384 billion won.
The company said refractory selling prices change with conditions in customer industries and raw material costs. Its average refractory price for the 2026 period was 927,718 won a ton, compared with 972,514 won for the full year of 2025. Quicklime averaged 162,926 won a ton in the 2026 period, up from 157,992 won for 2025. The company did not publish price trends for energy materials, citing concerns about information leakage.
POSCO Future M said it expects battery demand to keep growing as electric vehicle and energy storage markets expand. It is increasing spherical graphite production capacity in the Saemangeum industrial complex and pursuing an artificial graphite anode materials plant in Vietnam. In October, after the reporting period, the company contributed 47.4 billion won to its FutureM Vietnam subsidiary through a capital increase.
Trade policy remains an uncertainty for that business. The company said its sales of cathode and anode materials to the United States accounted for about 36% of its standalone sales. It expects an effect from US tariffs on auto parts, but said it could not reasonably estimate the financial impact.
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