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Presentation materials for financial results5401NIPPON STEEL CORPORATIONIron & Steel, Nonferrous Metals

Regarding the Financial Results for Fiscal 2025

In FY2025, revenue increased, while business profit and profit for the year fell below the previous fiscal year but exceeded the forecast announced in February. For FY2026, the company indicated that it expects to target underlying business profit of at least ¥700 billion, incorporating improved earnings at U.S. Steel. The impact of the situation in the Middle East could not be quantified and has not been included in the forecast.

Worth reading
69In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
941
¥100 million (increase from the previously announced business profit forecast)
Wording
Avoiding a definitive answer
How definitive the wording is.

Contents of this document

Supplementary materials to the earnings reportFY2026, not FY2025 (fiscal year ending March 2026)13 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales100,632 Hundreds of millions of yen+15.7%
Operating profit5,141 Hundreds of millions of yen-24.7%
Net income171 Hundreds of millions of yen-95.1%
Operating profit margin
Rate5.1
Year-on-year change (points)-2.7
Full-year earnings forecast
Fiscal 2026
Revenue
110,000 Hundreds of millions of yen
Business profit
5,300 Hundreds of millions of yen
Profit for the period attributable to owners of the parent
2,200 Hundreds of millions of yen
EBITDA
12,000 Hundreds of millions of yen
Underlying business profit
¥7,000 100 million or more
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Above the previous forecast
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
FY2025 year-on-year change in business profit
Underlying business profit-1,430
Production and shipments-200
Margin (including FX impact)-1,150
Cost improvement1,300
Overseas business of the Company-350
U.S.Steel-60
Raw materials business-710
Steel Group Companies-350
Three non-ferrous companies180
Other-150
Inventory valuation difference-110
Non-operating items, consolidation eliminations, etc.-150
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Foreign exchangeApproximately ¥155/USD
Consolidated crude steel productionApproximately 57.5 million tonnes
Standalone crude steel productionApproximately 35.0 million tonnes
Steel shipmentsapproximately 31.5 million tonnes
Nationwide steel consumptionapproximately 48.5 million tonnes
New initiatives
  • Decision to integrate 山陽特殊製鋼 with the company
  • Scheduled start of commercial operations for next-generation hot rolling at the Nagoya Works
  • Launch of the electric arc furnace process conversion project in the Yawata District
  • Decision to build new Big River/DRI plants at U.S. Steel
  • Capacity expansion at the Hazira steelworks of AM/NS India
  • Construction of an integrated iron and steelworks in Andhra Pradesh, southern India
Key KPIsA metric the company considers important as a management benchmark.
  • Consolidated crude steel production5,048 10,000 tonnes
    Year on year against the same period last year+1,089.0%
  • Steel shipments3,116 10,000 tonnes
    Year on year against the same period last year-46.0%
  • Steel prices¥139.6 thousand/t
    Year on year against the same period last year-2.5%
  • D/E ratio0.71 times
    Year on year against the same period last year+0.4%
  • EBITDA10,880 Hundreds of millions of yen
    Year on year against the same period last year+196.0%
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Steel shipments
3,116 10,000 tonnes
Year on year against the same period last year-46.0%
Steel prices
¥139.6 thousand/t
Year on year against the same period last year-2.5%
Segment results
FY2025
Steelmaking
Revenue
92,217 Hundreds of millions of yen
Business profit
4,399 Hundreds of millions of yen
Revenue year-on-year change (%)17.1
Business profit year-on-year_pct-29.2
Engineering
Revenue
3,944 Hundreds of millions of yen
Business profit
231 Hundreds of millions of yen
Revenue year-on-year change (%)-1.5
Business profit year-on-year_pct58.2
Chemicals & Materials
Revenue
2,579 Hundreds of millions of yen
Business profit
219 Hundreds of millions of yen
Revenue year-on-year change (%)-4.2
Business profit year-on-year_pct15.9
System Solutions
Revenue
3,828 Hundreds of millions of yen
Business profit
433 Hundreds of millions of yen
Revenue year-on-year change (%)12.8
Business profit year-on-year_pct11.6
Medium-term management plan targets
Underlying business profitEstablish a competitive position that secures underlying business profit of at least ¥600 billion
Target fiscal yearThe period covered by the 2025 Medium- to Long-Term Management Plan
Actual results
FY2025 underlying business profit6,504 Hundreds of millions of yen
Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
Approximately -¥50 billion
DetailsImpact on Q1 FY2026 from higher costs for raw materials and fuel and lower direct exports of steel to the Middle East. The full-year impact has not been included in the earnings forecast.
Number of employees
Number of EmployeesMore than 100 (personnel assigned to U.S. Steel)
Capital expenditures
¥9,429 100 million FY2025 actual
FY2026 forecastApproximately ¥1,430 billion
Annual Dividend
FY2025
Annual¥24 per share
End of period¥12 per share
FY2026 forecast
Annual¥24 per share
Interim¥12 per share
Payout ratio
Cumulative FY2021-FY2025, excluding one-time losses associated with the acquisition of U.S. Steel
Rate30 Approximately %
Contents of this document
ItemDetails
Document typeSupplementary materials to the earnings report
Fiscal Period CoveredFY2026, not FY2025 (fiscal year ending March 2026)
Net Sales100,632 Hundreds of millions of yen (YoY +15.7%)
Operating profit5,141 Hundreds of millions of yen (YoY -24.7%)
Net income171 Hundreds of millions of yen (YoY -95.1%)
Operating profit marginRate 5.1 / Year-on-year change (points) -2.7
Full-year earnings forecastFiscal 2026 Revenue 110,000 Hundreds of millions of yen / Business profit 5,300 Hundreds of millions of yen / Profit for the period attributable to owners of the parent 2,200 Hundreds of millions of yen / EBITDA 12,000 Hundreds of millions of yen / Underlying business profit ¥7,000 100 million or more
Self-assessment against the planAbove the previous forecast
Segment resultsFY2025 Steelmaking Revenue 92,217 Hundreds of millions of yen / Business profit 4,399 Hundreds of millions of yen / Revenue year-on-year change (%) 17.1 / Business profit year-on-year_pct -29.2 / Engineering Revenue 3,944 Hundreds of millions of yen / Business profit 231 Hundreds of millions of yen / Revenue year-on-year change (%) -1.5 / Business profit year-on-year_pct 58.2 / Chemicals & Materials Revenue 2,579 Hundreds of millions of yen / Business profit 219 Hundreds of millions of yen / Revenue year-on-year change (%) -4.2 / Business profit year-on-year_pct 15.9 / System Solutions Revenue 3,828 Hundreds of millions of yen / Business profit 433 Hundreds of millions of yen / Revenue year-on-year change (%) 12.8 / Business profit year-on-year_pct 11.6
Breakdown of Factors Affecting the ChangeFY2025 year-on-year change in business profit Underlying business profit -1,430 / Production and shipments -200 / Margin (including FX impact) -1,150 / Cost improvement 1,300 / Overseas business of the Company -350 / U.S.Steel -60 / Raw materials business -710 / Steel Group Companies -350 / Three non-ferrous companies 180 / Other -150 / Inventory valuation difference -110 / Non-operating items, consolidation eliminations, etc. -150
Key KPIsIndicator name Consolidated crude steel production / Value 5,048 10,000 tonnes / Year on year against the same period last year 1,089 10,000 tonnes, Indicator name Steel shipments / Value 3,116 10,000 tonnes / Year on year against the same period last year -46 10,000 tonnes, Indicator name Steel prices / Value ¥139.6 thousand/t / Year on year against the same period last year ¥-2.5 thousand/t, Indicator name D/E ratio / Value 0.71 times / Year on year against the same period last year 0.36 times, Indicator name EBITDA / Value 10,880 Hundreds of millions of yen / Year on year against the same period last year 196 Hundreds of millions of yen
Unit price and quantity metricsSteel shipments 3,116 10,000 tonnes / Steel prices ¥139.6 thousand/t
Number of employeesNumber of Employees More than 100 (personnel assigned to U.S. Steel) / Changes during the period and hiring plan Not disclosed
Assumptions Underlying the Business OutlookForeign exchange Approximately ¥155/USD / Consolidated crude steel production Approximately 57.5 million tonnes / Standalone crude steel production Approximately 35.0 million tonnes / Steel shipments approximately 31.5 million tonnes / Nationwide steel consumption approximately 48.5 million tonnes
Risk amount incorporated into the outlookAmount Approximately -¥50 billion / Details Impact on Q1 FY2026 from higher costs for raw materials and fuel and lower direct exports of steel to the Middle East. The full-year impact has not been included in the earnings forecast.
Medium-term management plan targetsUnderlying business profit Establish a competitive position that secures underlying business profit of at least ¥600 billion / Target fiscal year The period covered by the 2025 Medium- to Long-Term Management Plan / Actual results FY2025 underlying business profit 6,504 Hundreds of millions of yen
Annual DividendFY2025 Annual ¥24 per share / End of period ¥12 per share / FY2026 forecast Annual ¥24 per share / Interim ¥12 per share
Payout ratioRate 30 Approximately % / Subject Cumulative FY2021-FY2025, excluding one-time losses associated with the acquisition of U.S. Steel
Capital expenditures¥9,429 100 million (FY2025 actual)
New initiativesDecision to integrate 山陽特殊製鋼 with the company, Scheduled start of commercial operations for next-generation hot rolling at the Nagoya Works, Launch of the electric arc furnace process conversion project in the Yawata District, Decision to build new Big River/DRI plants at U.S. Steel, Capacity expansion at the Hazira steelworks of AM/NS India, Construction of an integrated iron and steelworks in Andhra Pradesh, southern India
Items this document does not state (11)
Ordinary incomeGross Profit MarginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastNumber of stores and locationsFinancial targetsAcquisition of treasury sharesOrders received and order backlogMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

In FY2025, improvements in inventory valuation differences, cost reductions, and contributions from the steel group companies and the three non-ferrous companies pushed up business profit, while margins, the company's overseas operations, and the raw materials business weighed on it. In FY2026, the company expects earnings to improve, primarily through synergies at U.S. Steel, but the impact of higher raw material and fuel costs resulting from the situation in the Middle East and lower steel exports to the Middle East has not been included in the full-year forecast.

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Regarding the Financial Results for Fiscal 2025 | NIPPON STEEL CORPORATION (5401) timely disclosure | Komori