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Operating Segments and Geographic Information

12 Months Ended

Dec. 31, 2025

Operating Segments and Geographic Information

40. Operating Segments and Geographic Information

(a)	The Company’s operating businesses are organized based on the nature of markets and customers. Segment assets, liabilities and profit (loss) are generally measured based on separate financial statements in accordance with K-IFRS of the subsidiaries that constitute reportable operating segments.

The Company has classified the operating segments as below. Also, businesses in which the subsidiaries in each segment operate are as follows:


Operating segments		Main Business
Steel		Manufacture and sales of steel products

Infrastructure	Trading	Supply and purchase transactions between domestic and foreign companies, power generation, and resource development

	Construction	Design, production and construction of steel mills and their facilities, commercial and residential facilities, etc.

	Logistics and others	Logistics, network and system integration business

Rechargeable Battery Materials		EV battery materials such as lithium, nickel, negative/cathode materials

Others		POSCO HOLDINGS. INC., Controlling company and Investment business

(

)

The segment profit or loss does not reflect the consolidation adjustments allocated to each entity and is determined in the same way as the consolidated profit for the period, in accordance with IFRS Accounting Standards. The accounting policies applied to each segment are consistent with the accounting policies of the entities that make up the consolidated financial statements. Segment assets and liabilities are generally measured based on the total assets and total liabilities in accordance with K-IFRS before reflecting the consolidation adjustments allocated to the entity. Furthermore, segment assets and liabilities are based on the separate financial statements of the consolidated entities, not on a consolidated basis. Transactions between reporting segments

include various levels of inter-segment transactions, which encompass the disposal of tangible assets and the provision of construction services, among others.

(c)	Information about reportable segments as of and for the years ended December 31, 2023, 2024 and 2025 are as follows:

As of and for the year ended December 31, 2023


				Infrastructure
(in millions of Won)	Steel			Trading			Construction			Logistics and others			Rechargeable Battery Materials			Others			Total
External revenues	￦	40,393,273			24,033,506			8,301,130			470,613			3,816,042			112,633			77,127,197
Internal revenues		23,145,425			18,910,246			1,966,373			3,475,340			1,005,844			1,449,581			49,952,809
Inter segment revenues		15,293,780			8,906,571			1,864,723			3,431,594			972,511			1,422,313			31,891,492
Total revenues		63,538,698			42,943,752			10,267,503			3,945,953			4,821,886			1,562,214			127,080,006
Interest income		281,530			66,398			100,682			15,837			39,339			73,550			577,336
Interest expenses		(718,937	)		(284,056	)		(105,102	)		(14,091	)		(57,638	)		(272	)		(1,180,096	)
Depreciation and amortization		(3,044,565	)		(508,161	)		(66,854	)		(54,219	)		(155,567	)		(16,126	)		(3,845,492	)
Impairment loss on property, plant and equipment and others		(305,437	)		(9,826	)		(28,031	)		—			(55,601	)		(10,657	)		(409,552	)
Share of income (loss) of equity-accounted investees, net		(182,668	)		(37,368	)		13,632			—			(67,248	)		(109,568	)		(383,220	)
Income tax expense		(595,457	)		(239,164	)		(95,364	)		(39,250	)		13,281			113,895			(842,059	)
Segment profits (losses)		1,241,211			723,929			183,453			170,959			(235,603	)		827,298			2,911,247
Segment total assets		66,224,069			19,650,557			9,631,691			2,476,842			10,909,515			51,957,529			160,850,203
Investment in subsidiaries, associates and joint ventures		3,855,038			2,933,140			481,672			9,999			1,550,524			45,084,972			53,915,345
Acquisition of non-current assets		3,748,163			553,955			119,438			137,237			2,795,447			162,639			7,516,879
Segment total liabilities		24,154,043			11,842,508			5,589,827			993,071			4,972,568			4,301,310			51,853,327

)

As of and for the year ended December 31, 2024


				Infrastructure
(in millions of Won)	Steel			Trading			Construction			Logistics and others			Rechargeable Battery Materials			Others			Total
External revenues	￦	39,104,095			22,803,773			7,473,006			421,742			2,812,549			72,978			72,688,143
Internal revenues		23,096,825			20,099,480			2,356,572			3,717,459			1,017,302			2,038,172			52,325,810
Inter segment revenues		15,038,824			9,427,415			2,233,541			3,694,427			959,313			2,011,559			33,365,079
Total revenues		62,200,920			42,903,253			9,829,578			4,139,201			3,829,851			2,111,150			125,013,953
Interest income		279,469			72,208			158,867			18,902			47,525			85,128			662,099
Interest expenses		(699,586	)		(308,671	)		(146,885	)		(12,169	)		(117,040	)		(1,328	)		(1,285,679	)
Depreciation and amortization		(3,166,418	)		(492,626	)		(77,355	)		(61,578	)		(240,723	)		(19,964	)		(4,058,664	)
Impairment loss on property, plant and equipment and others		(273,160	)		(36,161	)		(8,420	)		(10,518	)		(331,717	)		(299	)		(660,275	)
Share of loss of equity-accounted investees, ne t		(321,718	)		(142,090	)		(111,476	)		—			(170,122	)		(392,074	)		(1,137,480	)
Income tax expense		(306,337	)		(189,573	)		(18,387	)		(46,996	)		203,475			62,923			(294,895	)
Segment profits (losses)		691,477			536,684			(194,292	)		104,022			(634,860	)		1,596,035			2,099,066
Segment total assets		66,585,437			21,012,507			9,270,877			2,592,169			15,090,058			50,946,666			165,497,714
Investment in subsidiaries, associates and joint ventures		4,339,321			3,080,324			276,994			12,165			2,397,830			45,407,650			55,514,284
Acquisition of non-current assets		3,589,327			916,654			29,033			252,499			4,717,540			256,826			9,761,879
Segment total liabilities		24,375,388			12,152,036			5,627,404			1,003,673			7,347,647			2,565,914			53,072,062

)

As of and for the year ended December 31, 2025


				Infrastructure
(in millions of Won)	Steel			Trading			Construction			Logistics and others			Rechargeable Battery Materials			Others			Total
External revenues	￦	37,284,859			23,744,104			5,615,425			308,698			2,096,318			45,482			69,094,886
Internal revenues		22,113,985			18,476,807			1,612,908			3,245,526			1,242,068			1,454,626			48,145,920
Inter segment revenues		13,410,240			8,320,896			1,536,259			3,213,965			1,080,601			1,428,562			28,990,523
Total revenues		59,398,844			42,220,911			7,228,333			3,554,224			3,338,386			1,500,108			117,240,806
Interest income		265,247			71,820			166,612			14,037			33,093			102,238			653,047
Interest expenses		(642,769	)		(294,752	)		(158,004	)		(10,091	)		(163,332	)		(36,075	)		(1,305,023	)
Depreciation and amortization		(3,157,768	)		(550,848	)		(77,880	)		(61,323	)		(387,604	)		(25,757	)		(4,261,180	)
Impairment loss on property, plant and equipment and others		(74,950	)		(102,427	)		(1,124	)		(69	)		(26,967	)		1			(205,536	)
Share of profit (loss) of equity-accounted investees, ne t		78,456			(66,743	)		(59,415	)		—			(4,598	)		(288,464	)		(340,764	)
Income tax expense		(425,319	)		(127,340	)		165,765			(30,729	)		56,431			(296,715	)		(657,907	)
Segment profits (losses)		1,151,885			562,687			(565,450	)		61,045			(592,030	)		506,748			1,124,885
Segment total assets		65,563,164			23,642,210			9,797,114			2,041,956			17,624,390			52,173,819			170,842,653
Investment in subsidiaries, associates and joint ventures		4,853,061			4,373,069			243,420			26,859			3,557,211			46,090,333			59,143,953
Acquisition of non-current assets		2,740,237			917,829			24,041			215,973			2,218,337			305,257			6,421,674
Segment total liabilities		22,346,902			13,197,558			6,662,955			784,391			7,827,176			3,983,008			54,801,990

(d)	Reconciliations of total segment revenues, profit or loss, assets and liabilities, and other significant items to their respective consolidated financial statement line items are as follows:

Revenues


(in millions of Won)	2023			2024			2025
Total revenue for reportable segments	￦	127,080,006			125,013,953			117,240,806
Elimination of inter-segment revenue		(49,952,809	)		(52,325,810	)		(48,145,920	)
Basis difference(*2)		(70,648	)		771,265			(107,948	)

	￦	77,056,549			73,459,408			68,986,938

Profit


(in millions of Won)	2023			2024			2025
Total profit for reportable segments	￦	2,911,247			2,099,066			1,124,885
Goodwill and corporate fair value (“FV”) adjustment s		172,493			(64,791	)		(65,966	)
Elimination of inter-segment losses (profits)		(1,237,891	)		(1,086,695	)		(554,515	)
Income tax expense		789,305			303,623			602,446
Basis difference(*2)		272			75,027			32,308

Profit before income taxes	￦	2,635,426			1,326,230			1,139,158

Assets


(in millions of Won)	2024			2025
Total assets for reportable segments(*1)	￦	165,497,714			170,842,653
Equity-accounted investees		(50,775,491	)		(54,163,800	)
Goodwill and corporate FV adjustments		2,543,165			2,943,006
Elimination of inter-segment assets		(13,861,189	)		(14,429,421	)
Basis difference(*2)		39,536			95,240

	￦	103,443,735			105,287,678

Liabilities


(in millions of Won)	2024			2025
Total liabilities for reportable segments(*1)	￦	53,072,062			54,801,990
Corporate FV adjustments		221,537			211,742
Elimination of inter-segment liabilities		(11,339,768	)		(12,198,985	)
Basis difference(*2)		47,136			80,219

	￦	42,000,967			42,894,966

(*1)

As segment assets and liabilities are determined based on separate financial statements, the carrying amount of assets of subsidiaries, which are in a different segment from that of their immediate parent company, in the separate financial statements the immediate parent company is eliminated upon consolidation. In addition, the amount of investment in associates and joint ventures are adjusted from the amount reflected in segment assets to that determined using equity method in consolidated financial statements.

(*2)

Basis difference is related to the differences in recorded revenue and expenses for development and sale of certain residential real estates and other items between the report reviewed by management and the consolidated financial statements.

Other significant items

For the year ended December 31, 2023


(in millions of Won)	Total segment			Goodwill and corporate FV adjustments			Elimination of inter-segment transactions			Basis difference(*1)			Consolidated
Interest income	￦	577,336			—			(75,189	)		—			502,147
Interest expenses		(1,180,096	)		—			178,807			—			(1,001,290	)
Depreciation and amortization		(3,845,492	)		(99,347	)		121,559			—			(3,823,280	)
Share of profit(loss) of equity-accounted investees, net		(383,220	)		—			652,898			—			269,678
Income tax expense		(842,059	)		46,116			6,638			(62	)		(789,367	)
Impairment loss on property, plant and equipment and others		(409,552	)		—			3,799			—			(405,753	)

	￦	(6,083,083	)		(53,231	)		888,512			(62	)		(5,247,865	)

For the year ended December 31, 2024


(in millions of Won)	Total segment			Goodwill and corporate FV adjustments			Elimination of inter-segment transactions			Basis difference(*1)			Consolidated
Interest income	￦	662,099			—			(85,317	)		—			576,782
Interest expenses		(1,285,679	)		—			234,168			—			(1,051,511	)
Depreciation and amortization		(4,058,664	)		(86,358	)		160,562			—			(3,984,460	)
Share of profit of equity-accounted investees, net		(1,137,480	)		(50	)		881,072			—			(256,458	)
Income tax expense		(294,895	)		21,668			(30,396	)		(17,331	)		(320,954	)
Impairment loss on property, plant and equipment and others		(660,275	)		(282	)		(13,198	)		—			(673,755	)

	￦	(6,774,894	)		(65,022	)		1,146,891			(17,331	)		(5,710,356	)

For the year ended December 31, 2025


(in millions of Won)	Total segment			Goodwill and corporate FV adjustments			Elimination of inter-segment transactions			Basis difference(*1)			Consolidated
Interest income	￦	653,047			—			(119,740	)		—			533,307
Interest expenses		(1,305,023	)		—			213,561			—			(1,091,462	)
Depreciation and amortization		(4,261,180	)		(80,920	)		182,877			—			(4,159,223	)
Share of profit(loss) of equity-accounted investees, net		(340,764	)		—			690,674			—			349,910
Income tax expense		(657,907	)		14,954			40,507			(9,689	)		(612,135	)
Impairment loss on property, plant and equipment and others		(205,536	)		—			10,552			—			(194,984	)

	￦	(6,117,363	)		(65,966	)		1,018,431			(9,689	)		(5,174,587	)

(*1)	Basis difference is related to the differences in recorded revenue and expenses for development and sale of certain residential real estates and other items between the report reviewed by management and the consolidated financial statements.

(d)

Revenue by geographic area for the years ended December 31, 2023, 2024 and 2025 was as follows:


(in millions of Won)	2023			2024		2025
Domestic	￦	50,658,510			45,960,140		42,516,707
Japan		2,691,788			2,814,631		2,590,102
China		6,152,191			5,737,686		5,160,583
Indonesia		3,422,647			3,156,962		2,873,999
Asia-other		7,287,382			7,382,157		7,751,121
North America		2,095,705			2,504,563		2,780,769
Europe		2,468,508			2,743,528		3,065,738
Others		2,350,466			2,388,476		2,355,867

		77,127,197			72,688,143		69,094,886
Basis difference		(70,648	)		771,265		(107,948	)

		￦ 77,056,549			73,459,408		68,986,938

The information on geography, segment revenue is presented based on the geographical location of each segment entity.

(e)

Non-current

assets by geographic area as of December 31, 2024 and 2025 are as follows:


(in millions of Won)	2024		2025
Domestic	￦	33,512,812		34,594,834
Japan		131,086		126,582
China		1,140,136		1,074,438
Indonesia		3,036,954		3,416,737
Asia-other		1,698,956		1,950,162
North America		1,857,787		2,400,911
Europe		302,775		324,813
Others		4,897,042		5,589,497

	￦	46,577,548		49,477,974

Non-current

assets by geographic area include investment property, property, plant and equipment, goodwill and other intangible assets.

(f)

There are no customers whose revenue is 10% or more of the consolidated revenue.