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POSCO Targets Lithium, Energy to Transform Business Portfolio
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Key Takeaways
POSCO targets KRW 187T revenues and KRW 13.1T operating profit by 2035 through portfolio expansion.
PKX plans 173,000 tons of annual lithium capacity by 2033, targeting top-five global producer status.
POSCO will invest KRW 16.7T in 2026-2028 and use some proceeds for share buybacks.
POSCO Holdings Inc. (PKX - Free Report) has unveiled a long-term growth strategy to transform its business portfolio beyond steel by expanding into lithium, strategic minerals and energy, aiming to strengthen industrial supply chains and drive future earnings growth.
At its CEO Investor Day on July 2, CEO Chang In-Hwa outlined the group's vision to become a leading supplier of industrial, strategic and energy resources. The company is targeting consolidated revenues of KRW 187 trillion and operating profit of KRW 13.1 trillion by 2035.
Lithium will be the centerpiece of the strategy. POSCO plans to increase annual lithium production capacity to 173,000 tons by 2033, to become one of the world's top five lithium producers and generate more than KRW 1.8 trillion in operating profit from the business by 2035.
The company said its Argentina brine lithium operation turned profitable in March and recently received approval under Argentina's large investment incentive program, supporting future expansion. It also plans to accelerate additional phases of the project to reach 100,000 tons of annual brine lithium capacity by 2033.
In ore lithium, POSCO's joint venture with Australia's Mineral Resources Limited secures more than 187,000 tons of annual lithium concentrate supply, providing a foundation for expanding its refining business and generating stable annual revenues of roughly KRW 200 billion.
Beyond lithium, the group plans to expand its resources portfolio through rare earths and specialty gases that support electric vehicles, robotics and advanced manufacturing.
In its steel business, POSCO plans to increase overseas production capacity to 10 million tons by 2031 in high-growth markets including India, the United States and Indonesia, while reinvesting profits to support low-carbon initiatives in Korea.
The company also plans to expand its LNG value chain, grow renewable energy projects and commercialize Physical AI solutions for industrial operations.
To support the transformation, POSCO Group plans to invest KRW 16.7 trillion in growth initiatives during 2026-2028. It also intends to optimize ownership stakes in listed subsidiaries to around 50%, with the proceeds primarily funding strategic resource projects. About 10% of the proceeds will be used for share buybacks and cancellations to enhance shareholder value.
Shares of PKX have lost 14% in the past year compared with the industry’s 33.1% decline.
The Zacks Consensus Estimate for MMM’s current-year earnings is pegged at $8.73 per share, indicating an 8.3% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average earnings surprise being 4.6%.
The Zacks Consensus Estimate for MITSY’s current-year earnings is pegged at $47.56 per share, indicating a 23.1% year-over-year decrease. Shares of MITSY have plunged 9.7% over the past year.
The Zacks Consensus Estimate for GFF’s current fiscal-year earnings is pegged at $5.17 per share. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average earnings surprise being 3.3%.
View the Zacks #1 Rank List
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POSCO Targets Lithium, Energy to Transform Business Portfolio
Key Takeaways
POSCO Holdings Inc. (PKX - Free Report) has unveiled a long-term growth strategy to transform its business portfolio beyond steel by expanding into lithium, strategic minerals and energy, aiming to strengthen industrial supply chains and drive future earnings growth.
At its CEO Investor Day on July 2, CEO Chang In-Hwa outlined the group's vision to become a leading supplier of industrial, strategic and energy resources. The company is targeting consolidated revenues of KRW 187 trillion and operating profit of KRW 13.1 trillion by 2035.
Lithium will be the centerpiece of the strategy. POSCO plans to increase annual lithium production capacity to 173,000 tons by 2033, to become one of the world's top five lithium producers and generate more than KRW 1.8 trillion in operating profit from the business by 2035.
The company said its Argentina brine lithium operation turned profitable in March and recently received approval under Argentina's large investment incentive program, supporting future expansion. It also plans to accelerate additional phases of the project to reach 100,000 tons of annual brine lithium capacity by 2033.
In ore lithium, POSCO's joint venture with Australia's Mineral Resources Limited secures more than 187,000 tons of annual lithium concentrate supply, providing a foundation for expanding its refining business and generating stable annual revenues of roughly KRW 200 billion.
Beyond lithium, the group plans to expand its resources portfolio through rare earths and specialty gases that support electric vehicles, robotics and advanced manufacturing.
In its steel business, POSCO plans to increase overseas production capacity to 10 million tons by 2031 in high-growth markets including India, the United States and Indonesia, while reinvesting profits to support low-carbon initiatives in Korea.
The company also plans to expand its LNG value chain, grow renewable energy projects and commercialize Physical AI solutions for industrial operations.
To support the transformation, POSCO Group plans to invest KRW 16.7 trillion in growth initiatives during 2026-2028. It also intends to optimize ownership stakes in listed subsidiaries to around 50%, with the proceeds primarily funding strategic resource projects. About 10% of the proceeds will be used for share buybacks and cancellations to enhance shareholder value.
Shares of PKX have lost 14% in the past year compared with the industry’s 33.1% decline.
PKX Zacks Rank & Key Picks
PKX currently carries a Zacks Rank #4 (Sell).
Some other better-ranked stocks in the Conglomerates space are 3M Company (MMM - Free Report) , Mitsui & Co., Ltd. (MITSY - Free Report) and Griffon Corporation (GFF - Free Report) . MMM, MITSY and GFF carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for MMM’s current-year earnings is pegged at $8.73 per share, indicating an 8.3% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average earnings surprise being 4.6%.
The Zacks Consensus Estimate for MITSY’s current-year earnings is pegged at $47.56 per share, indicating a 23.1% year-over-year decrease. Shares of MITSY have plunged 9.7% over the past year.
The Zacks Consensus Estimate for GFF’s current fiscal-year earnings is pegged at $5.17 per share. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average earnings surprise being 3.3%.