South Korean steel giant POSCO Holdings registered quarter-on-quarter profit growth in its steelmaking business in the second quarter of 2026, according to its consolidated financial results.

The group posted total revenue of 19.26 trillion won ($13.52 billion), an operating profit of 819 billion won and a net profit of 761 billion won for the quarter. Higher steel selling prices and expanded shipment volumes drove the steel division's earnings upturn and offset rising raw material and fuel costs. Even amid growing risks in Middle Eastern energy supply chains, all core business segments achieved positive performance growth.

POSCO Holdings upgraded its corporate restructuring targets: it aims to wrap up 129 deals and raise 3.5 trillion won in cash by 2028, compared with previous targets of 128 deals and 2.8 trillion won by 2027. Twelve deals were finished in the first half of 2026, raising around 480 billion won. Cumulatively, 85 restructuring deals worth 2.2 trillion won have been implemented.

The group will press ahead with its three-pronged development strategy in the second half: industrial resources (steel), strategic mineral resources (lithium, rare earths, rare gases), and energy resources.

According to POSCO's official Corporate Value Enhancement Plan released on July 30, the group has unveiled an aggressive overseas expansion plan. It will inject 6.7 trillion won into offshore steel projects within two years. The group targets doubling annual overseas steel capacity from the current 5 million tonnes to 10 million tonnes by 2031.

POSCO Group's total capital expenditure budget for 2024-2028 totals 29.1 trillion won, among which the 6.7-trillion-won overseas steel investment accounts for roughly 23%, the largest single expenditure item.

POSCO will expand the capacity of its Krakatau POSCO joint venture. The project will build Southeast Asia's first full-integrated steel industrial chain, covering blast furnace pig iron smelting all the way to high-end automotive steel products including cold-rolled steel and galvanized sheets.

A 50:50 joint venture with local leader JSW Steel will construct a 6-million-tonne integrated steel mill in Odisha, scheduled for completion in 2031. The plant will initially focus on infrastructure steel and gradually shift production toward automotive steel.

POSCO participates in Hyundai Steel's $5.8 billion Louisiana electric arc furnace joint venture, slated for commissioning in 2029. It also evaluates investment in Cleveland-Cliffs to mitigate trade barriers and consolidate its foothold in the North American market.

POSCO has finished building South Korea's largest electric arc furnace at its Gwangyang steel base. The new furnace boasts an annual capacity of 2.5 million tonnes and serves as a core facility for the group's low-carbon transformation roadmap.