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Earnings presentation materials5401NIPPON STEEL CORPORATIONIron and steel and nonferrous metals

Results for the second quarter of fiscal 2026

In the first half of FY2026, business profit and profit attributable to owners of the parent exceeded the levels recorded in the same period of the previous year, due to improvements in overseas businesses, including U.S. Steel, and inventory valuation differences. The full-year forecasts were also raised by ¥70 billion for underlying business profit, ¥90 billion for business profit and ¥150 billion for profit attributable to owners of the parent.

Worth reading
67In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Improvement
Direction inferred from the company’s description.
Scale
1500
¥100 million
Wording
Conditional
How definitive the wording is.

Contents of this document

Supplementary Materials to the Earnings ReportSecond quarter (interim period) of the fiscal year ending March 202711 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥58,441 100 million
Net income¥2,629 100 million
Full-year earnings forecast
Revenue
¥117,000 100 million
Underlying business profit
¥7,700 100 million
Business profit
¥7,200 100 million
Profit for the period attributable to owners of the parent
¥4,400 100 million
EBITDA
¥14,200 100 million
Annual Dividend
¥24 /share
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Underlying business profit
Japan-1,120
Production and shipments-100
Margin (including FX impact)-1,430
Cost improvement300
Other-30
Steel Group Companies10
Three non-ferrous companies130
Overseas800
Overseas steelmaking business670
U.S. Steel (including NSSK)770
Raw materials business130
Inventory valuation difference1,590
Non-operating items, consolidation adjustments and other items-470
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Consolidated crude steel productionapproximately 5,800
  • Steel shipmentsapproximately 3,150
  • Steel pricesApproximately 149
  • Exchange rateApproximately 160
New initiatives
  • Commercial operation of the new hot-rolling mill at Nagoya Works (August 2026)
  • Integration with Sanyo Special Steel (scheduled for 1 April 2027)
  • Strategic partnership between Nippon Steel Solutions and Anthropic
  • U.S. Steel construction of new Mon Valley hot-rolling facilities (approximately $3 billion)
  • NSSK investment in new electric furnace and oxygen plant facilities at Košice (approximately €900 million)
  • €350 million subsidy agreement with the Slovak government
  • AM/NS India's cold-rolling and aluminum coating facilities at Hazira scheduled to come online
  • AM/NS India's commencement of construction of an integrated steelworks at Rajayyapeta
  • Review of domestic organization, personnel and operations, and expansion of overseas deployment of domestic personnel
Key KPIsA metric the company considers important as a management benchmark.
  • Consolidated crude steel production2,855 10,000 tonnes
    Year on year against the same period last year+562.0%
  • Standalone crude steel production1,722 10,000 tonnes
    Year on year against the same period last year+46.0%
  • Steel shipments1,525 10,000 tonnes
    Year on year against the same period last year-23.0%
  • Steel prices¥145.8 thousand/t
    Year on year against the same period last year+7.2%
  • Foreign Exchange160 JPY/USD
    Year on year against the same period last year¥14 lower
  • ROS5.3 %
    Year on year against the same period last year+0.4%
  • ROE9.3 %
    Year on year against the same period last year+13.6%
  • D/E ratio0.73 x
    Year on year against the same period last year-0.0%
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Steel shipments1,525 10,000 tonnes
    Year on year against the same period last year-23.0%
  • Steel prices¥145.8 thousand/t
    Year on year against the same period last year+7.2%
Segment results
Revenue
Steelmaking
¥54,125 100 million
yoy_change11,686
System Solutions
¥1,993 100 million
yoy_change203
Chemicals & Materials
¥1,562 100 million
yoy_change281
Engineering
¥1,655 100 million
yoy_change-167
Adjustments
¥-894 100 million
yoy_change83
Business profit
Steelmaking
¥2,766 100 million
yoy_change748
System Solutions
¥232 100 million
yoy_change57
Chemicals & Materials
¥224 100 million
yoy_change126
Engineering
¥75 100 million
yoy_change1
Adjustments
¥-223 100 million
yoy_change-132
Medium-term management plan targets
  • TargetU.S. Steel underlying business profit
    Target valueAt least ¥300 billion
    Target fiscal yearFY2030
  • TargetUnderlying business profit
    Target valueApproximately ¥1 trillion
    Target fiscal yearFiscal 2027 onward
Financial targets
ROE
Actual results9.3 %
Debt-to-equity ratio
Actual results0.73 x
Capital expenditures
Approximately 13,800
Annual Dividend
Annual¥24 /share
Interim¥12 /share
Three months of the current quarter
Revenue
¥30,229 100 million
Business profit
¥1,619 100 million
Contents of this document
ItemDetails
Document typeSupplementary Materials to the Earnings Report
Fiscal Period CoveredSecond quarter (interim period) of the fiscal year ending March 2027
Net Sales¥58,441 100 million
Net income¥2,629 100 million
Three months of the current quarterRevenue ¥30,229 100 million / Business profit ¥1,619 100 million
Full-year earnings forecastRevenue ¥117,000 100 million / Underlying business profit ¥7,700 100 million / Business profit ¥7,200 100 million / Profit for the period attributable to owners of the parent ¥4,400 100 million / EBITDA ¥14,200 100 million / Annual Dividend ¥24 /share
Segment resultsRevenue Steelmaking ¥54,125 100 million / System Solutions ¥1,993 100 million / Chemicals & Materials ¥1,562 100 million / Engineering ¥1,655 100 million / Adjustments ¥-894 100 million / Business profit Steelmaking ¥2,766 100 million / System Solutions ¥232 100 million / Chemicals & Materials ¥224 100 million / Engineering ¥75 100 million / Adjustments ¥-223 100 million
Breakdown of Factors Affecting the ChangeUnderlying business profit Japan -1,120 / Production and shipments -100 / Margin (including FX impact) -1,430 / Cost improvement 300 / Other -30 / Steel Group Companies 10 / Three non-ferrous companies 130 / Overseas 800 / Overseas steelmaking business 670 / U.S. Steel (including NSSK) 770 / Raw materials business 130 / Inventory valuation difference 1,590 / Non-operating items, consolidation adjustments and other items -470
Key KPIsIndicator name Consolidated crude steel production / Value 2,855 10,000 tonnes / Year on year against the same period last year 562 10,000 tonnes, Indicator name Standalone crude steel production / Value 1,722 10,000 tonnes / Year on year against the same period last year 46 10,000 tonnes, Indicator name Steel shipments / Value 1,525 10,000 tonnes / Year on year against the same period last year -23 10,000 tonnes, Indicator name Steel prices / Value ¥145.8 thousand/t / Year on year against the same period last year ¥7.2 thousand/t, Indicator name Foreign Exchange / Value 160 JPY/USD / Year on year against the same period last year ¥14 lower, Indicator name ROS / Value 5.3 % / Year on year against the same period last year 0.4 %, Indicator name ROE / Value 9.3 % / Year on year against the same period last year 13.6 %, Indicator name D/E ratio / Value 0.73 x / Year on year against the same period last year -0.01 x
Unit price and quantity metricsIndicator name Steel shipments / Value 1,525 10,000 tonnes / Year on year against the same period last year -23 10,000 tonnes, Indicator name Steel prices / Value ¥145.8 thousand/t / Year on year against the same period last year ¥7.2 thousand/t
Assumptions Underlying the Business OutlookItem Consolidated crude steel production / Value approximately 5,800, Item Steel shipments / Value approximately 3,150, Item Steel prices / Value Approximately 149, Item Exchange rate / Value Approximately 160
Medium-term management plan targetsTarget U.S. Steel underlying business profit / Target value At least ¥300 billion / Target fiscal year FY2030, Target Underlying business profit / Target value Approximately ¥1 trillion / Target fiscal year Fiscal 2027 onward
Financial targetsROE Actual results 9.3 % / Debt-to-equity ratio Actual results 0.73 x
Annual DividendAnnual ¥24 /share / Interim ¥12 /share / End of period Not disclosed
Capital expendituresApproximately 13,800
New initiativesCommercial operation of the new hot-rolling mill at Nagoya Works (August 2026), Integration with Sanyo Special Steel (scheduled for 1 April 2027), Strategic partnership between Nippon Steel Solutions and Anthropic, U.S. Steel construction of new Mon Valley hot-rolling facilities (approximately $3 billion), NSSK investment in new electric furnace and oxygen plant facilities at Košice (approximately €900 million), €350 million subsidy agreement with the Slovak government, AM/NS India's cold-rolling and aluminum coating facilities at Hazira scheduled to come online, AM/NS India's commencement of construction of an integrated steelworks at Rajayyapeta, Review of domestic organization, personnel and operations, and expansion of overseas deployment of domestic personnel
Items this document does not state (15)
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 outlookPayout 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.

The reasons include higher steel market prices at U.S. Steel, operating synergies, higher raw material market prices, improvements in inventory valuation differences and the one-time impact of a ¥96.1 billion Arkansas state tax credit related to capital investment in Big River 2. Domestic operations, meanwhile, were affected by a timing lag in passing on higher raw material and fuel prices, as well as typhoons and heavy rain.

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Results for the second quarter of fiscal 2026 | NIPPON STEEL CORPORATION (5401) timely disclosure | Komori