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Financial Results Presentation5401NIPPON STEEL CORPORATIONIron & Steel, Nonferrous Metals

First-quarter financial results for fiscal 2026

The full-year outlook for FY2026 has been revised to revenue of ¥112.0 billion, business profit of ¥630.0 billion and profit attributable to owners of the parent of ¥290.0 billion. While the outlook for underlying business profit in Japan has been revised downward, the outlook for overseas operations, particularly U. S. Steel, has been raised. The annual dividend remains unchanged at ¥24 per share.

Worth reading
63In 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
1000
¥100 million (change from the previous full-year business profit forecast)
Wording
Conditional
How definitive the wording is.

Contents of this document

Supplementary materials to the earnings reportFirst quarter of fiscal 20269 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales28,211 Hundreds of millions of yen
Net income¥752 100 million profit for the year attributable to owners of the parent
Results for the three months of the current quarter
Revenue¥2,821.1 billion
Underlying business profit¥108.4 billion
Business profit¥145.5 billion
Profit for the period attributable to owners of the parent¥75.2 billion
Full-year earnings forecast
Revenue
112,000 Hundreds of millions of yen
Underlying business profit
7,000 Hundreds of millions of yen
Business profit
6,300 Hundreds of millions of yen
Profit for the period attributable to owners of the parent
2,900 Hundreds of millions of yen
EBITDA
13,300 Hundreds of millions of yen
Consolidated crude steel production
approximately 5,800
Steel shipments
approximately 3,150
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Change in consolidated business profit
535 Hundreds of millions of yen
Underlying business profit-650
Domestic-940
Production and shipments-50
Margin (including FX impact)-830
Cost improvement50
Other-120
Steel Group Companies-10
Three non-ferrous companies20
Overseas expansion290
Overseas business of the Company280
U. S. Steel320
Raw materials business10
Inventory valuation difference1,120
Non-operating items, consolidation adjustments and other items70
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Foreign Exchangeapproximately ¥160/$
Consolidated crude steel productionapproximately 58.0 million tonnes
Steel shipmentsapproximately 31.5 million tonnes
Steel pricesapproximately ¥145,000/tonne
Nationwide steel consumptionapproximately 48.5 million tonnes
New initiatives
  • Commercial operation of the next-generation hot-rolling line at Nagoya Works (scheduled for August 2026)
  • Integration with Sanyo Special Steel (scheduled for 1 April 2027)
  • Restart of U. S. Steel blast furnaces, expansion of synergies and strategic investments
  • NSSK's transition to a direct investment structure with the Company (1 October 2026)
  • Ovako's transition to a direct investment structure with the Company (1 April 2027)
  • Start-up of cold-rolling and aluminizing facilities at AM/NS India and commencement of construction of the integrated steelworks at Rajayyapeta
Key KPIsA metric the company considers important as a management benchmark.
  • Consolidated crude steel production1,426 10,000 tonnes
    Year on year against the same period last year+481.0%
  • Standalone crude steel production851 10,000 tonnes
    Year on year against the same period last year+25.0%
  • Steel shipments753 10,000 tonnes
    Year on year against the same period last year-11.0%
  • Steel prices¥141.8 thousand/t
    Year on year against the same period last year+2.1%
  • Foreign Exchange¥160 /$
    Year on year against the same period last year¥15 weaker year on year
  • National crude steel production2,035 10,000 tonnes
    Year on year against the same period last year+20.0%
  • Nationwide steel consumption1,185 10,000 tonnes
    Year on year against the same period last year-18.0%
  • ROS5.2 %
    Year on year against the same period last year+0.6%
  • ROE5.4 %
    Year on year against the same period last year+20.5%
  • EBITDA3,128 Hundreds of millions of yen
    Year on year against the same period last year+1,242.0%
  • Interest-Bearing Debt48,007 Hundreds of millions of yen
    Year on year against the same period last year+1,808.0%
  • D/E ratio0.76 times
    Year on year against the same period last year-0.1%
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Steel shipments
753 10,000 tonnes
Year on year against the same period last year-11.0%
Steel prices
¥141.8 thousand/t
Year on year against the same period last year+2.1%
Segment results
Revenue
Steelmaking
26,129 Hundreds of millions of yen
yoy_change7,899
System Solutions
938 Hundreds of millions of yen
yoy_change109
Chemicals & Materials
738 Hundreds of millions of yen
yoy_change108
Engineering
833 Hundreds of millions of yen
yoy_change-57
Business profit
Steelmaking
1,442 Hundreds of millions of yen
yoy_change590
System Solutions
95 Hundreds of millions of yen
yoy_change8
Chemicals & Materials
92 Hundreds of millions of yen
yoy_change61
Engineering
42 Hundreds of millions of yen
yoy_change-12
Medium-term management plan targets
TargetGrow underlying business profit to approximately ¥1 trillion through the expansion of overseas business earnings and other initiatives from FY2027 onward
Target fiscal yearFiscal 2027 onward
Capital expenditures
approximately 14,300FY2026, construction basis, consolidated
Annual Dividend
Annual¥24 per share
Interim¥12
Contents of this document
ItemDetails
Document typeSupplementary materials to the earnings report
Fiscal Period CoveredFirst quarter of fiscal 2026
Net Sales28,211 Hundreds of millions of yen
Net income¥752 100 million (profit for the year attributable to owners of the parent)
Results for the three months of the current quarterRevenue ¥2,821.1 billion / Underlying business profit ¥108.4 billion / Business profit ¥145.5 billion / Profit for the period attributable to owners of the parent ¥75.2 billion
Full-year earnings forecastRevenue 112,000 Hundreds of millions of yen / Underlying business profit 7,000 Hundreds of millions of yen / Business profit 6,300 Hundreds of millions of yen / Profit for the period attributable to owners of the parent 2,900 Hundreds of millions of yen / EBITDA 13,300 Hundreds of millions of yen / Consolidated crude steel production approximately 5,800 / Steel shipments approximately 3,150
Segment resultsRevenue Steelmaking 26,129 Hundreds of millions of yen / System Solutions 938 Hundreds of millions of yen / Chemicals & Materials 738 Hundreds of millions of yen / Engineering 833 Hundreds of millions of yen / Business profit Steelmaking 1,442 Hundreds of millions of yen / System Solutions 95 Hundreds of millions of yen / Chemicals & Materials 92 Hundreds of millions of yen / Engineering 42 Hundreds of millions of yen
Breakdown of Factors Affecting the ChangeChange in consolidated business profit 535 Hundreds of millions of yen / Underlying business profit -650 / Domestic -940 / Production and shipments -50 / Margin (including FX impact) -830 / Cost improvement 50 / Other -120 / Steel Group Companies -10 / Three non-ferrous companies 20 / Overseas expansion 290 / Overseas business of the Company 280 / U. S. Steel 320 / Raw materials business 10 / Inventory valuation difference 1,120 / Non-operating items, consolidation adjustments and other items 70
Key KPIsIndicator name Consolidated crude steel production / Value 1,426 10,000 tonnes / Year on year against the same period last year 481 10,000 tonnes, Indicator name Standalone crude steel production / Value 851 10,000 tonnes / Year on year against the same period last year 25 10,000 tonnes, Indicator name Steel shipments / Value 753 10,000 tonnes / Year on year against the same period last year -11 10,000 tonnes, Indicator name Steel prices / Value ¥141.8 thousand/t / Year on year against the same period last year ¥2.1 thousand/t, Indicator name Foreign Exchange / Value ¥160 /$ / Year on year against the same period last year ¥15 weaker year on year, Indicator name National crude steel production / Value 2,035 10,000 tonnes / Year on year against the same period last year 20 10,000 tonnes, Indicator name Nationwide steel consumption / Value 1,185 10,000 tonnes / Year on year against the same period last year -18 10,000 tonnes, Indicator name ROS / Value 5.2 % / Year on year against the same period last year 0.6 %, Indicator name ROE / Value 5.4 % / Year on year against the same period last year 20.5 %, Indicator name EBITDA / Value 3,128 Hundreds of millions of yen / Year on year against the same period last year 1,242 Hundreds of millions of yen, Indicator name Interest-Bearing Debt / Value 48,007 Hundreds of millions of yen / Year on year against the same period last year 1,808 Hundreds of millions of yen, Indicator name D/E ratio / Value 0.76 times / Year on year against the same period last year -0.09 times
Unit price and quantity metricsSteel shipments 753 10,000 tonnes / Steel prices ¥141.8 thousand/t
Assumptions Underlying the Business OutlookForeign Exchange approximately ¥160/$ / Consolidated crude steel production approximately 58.0 million tonnes / Steel shipments approximately 31.5 million tonnes / Steel prices approximately ¥145,000/tonne / Nationwide steel consumption approximately 48.5 million tonnes
Medium-term management plan targetsTarget Grow underlying business profit to approximately ¥1 trillion through the expansion of overseas business earnings and other initiatives from FY2027 onward / Target fiscal year Fiscal 2027 onward
Annual DividendAnnual ¥24 per share / Interim ¥12 / End of period Not disclosed
Capital expendituresapproximately 14,300
New initiativesCommercial operation of the next-generation hot-rolling line at Nagoya Works (scheduled for August 2026), Integration with Sanyo Special Steel (scheduled for 1 April 2027), Restart of U. S. Steel blast furnaces, expansion of synergies and strategic investments, NSSK's transition to a direct investment structure with the Company (1 October 2026), Ovako's transition to a direct investment structure with the Company (1 April 2027), Start-up of cold-rolling and aluminizing facilities at AM/NS India and commencement of construction of the integrated steelworks at Rajayyapeta
Items this document does not state (16)
Operating profitOrdinary incomeGross Profit MarginOperating profit marginSelling, general and administrative expensesProgress against full-year forecastSelf-assessment against the planNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookFinancial targetsPayout ratioAcquisition 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.

Domestic earnings are expected to decline due to a deterioration in the operating environment, including higher raw material and fuel costs. Overseas earnings are expected to increase, driven by higher U.S. steel market prices, synergies at U. S. Steel, and the effects of earnings improvement measures centered on blast furnace restarts.

How to read this page

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Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
First-quarter financial results for fiscal 2026 | NIPPON STEEL CORPORATION (5401) timely disclosure | Komori