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Presentation materials on financial results5411JFE Holdings,Inc.Iron & Steel, Nonferrous Metals

Investor Meeting Materials for the Fiscal Year Ending March 2026 Results

In FY2025, revenue declined, while business profit excluding inventory valuation differences and other items, and profit for the year, both deteriorated from the previous year. In FY2026, business profit is expected to recover to ¥215.0 billion and profit for the year to ¥150.0 billion, driven by higher steel prices and cost improvements, although both are expected to fall short of the initial assumptions of the Eighth Medium-Term Management Plan.

Worth reading
76Important
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
797
¥100 million (year-on-year change in FY2026 business profit)
Wording
Conditional
How definitive the wording is.

Contents of this document

Presentation materials on financial resultsFiscal year ending March 202613 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales45,392 Hundred millions of yen
Operating profit¥1,353 100 million business profit
Ordinary income¥874 100 million profit before tax, IFRS
Net income¥701 100 million profit for the year
Results for the three months of the current quarter
Revenue
11,590 Hundred millions of yen
Business profit
379 Hundred millions of yen
Segment profit
313 Hundred millions of yen
Pretax profit
82 Hundred millions of yen
Profit for the period
93 Hundred millions of yen
Full-year earnings forecast
Revenue
48,000 Hundred millions of yen
Business profit
2,150 Hundred millions of yen
Pretax profit
1,900 Hundred millions of yen
Profit for the period
1,500 Hundred millions of yen
Segment profit
1,750 Hundred millions of yen
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Steel business segment profit (FY2024 → FY2025)
    Costs270
    Volume and composition-120
    Spread-780
    Inventory valuation differences and other items700
    Other-53
  • Steel business segment profit (FY2025 actual → FY2026 forecast)
    Costs350
    Volume and composition100
    Spread-200
    Inventory valuation differences and other items610
    Other-240
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Exchange rate¥155 /US$, approximately
  • Standalone crude steel production2,150 10,000 tonnes/year, approximately
  • Iron ore priceFOB$90～$100
  • Coking coal price230 FOB$/t, approximately
  • Crude oil price (risk assumption)100 WTI $/bbl, approximately
New initiatives
  • Restructuring of the flat steel business
  • Restructuring of the group’s section steel business
  • Consideration of collaboration with the Yamato Kogyo Group and Yodogawa Steel Works
  • Expansion of manufacturing capacity at J2ES and J2ES Nashik
  • Advancement of the JJSL integrated steelworks joint venture
  • Construction of the Kurashiki innovative electric furnace
  • Basic agreement with Mitsubishi Corporation on a joint power and data center business
  • Completion of the transition of core systems to open systems and deployment through JFE Resolus®
Key KPIsA metric the company considers important as a management benchmark.
  • Standalone crude steel production2,137 10,000 tonnes
    Year-on-year change▲580,000 tonnes
  • Consolidated crude steel production2,255 10,000 tonnes
    Year-on-year change▲650,000 tonnes
  • Standalone steel shipments1,886 10,000 tonnes
    Year-on-year change▲500,000 tonnes
  • Steel export ratio40.2 %
    Year-on-year change▲1.5 percentage points
  • Average steel price¥120.7 thousand/t
    Year-on-year change▲¥9.6 thousand/t
  • ROE2.7 %
  • Debt/EBITDA multiple4.8 times
    Year-on-year change+0.3x
  • D/E ratio59.4 %
    Year-on-year change+5.1 percentage points
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Standalone crude steel production
2,137 10,000 tonnes
Standalone steel shipments
1,886 10,000 tonnes
Average steel price
¥120.7 thousand/t
Segment results
  • Steel business
    Revenue30,884 Hundred millions of yen
    Segment profit380 Hundred millions of yen
    Year-on-year changeRevenue ▲¥276.7 billion, profit +¥1.7 billion
  • Engineering Business
    Revenue5,997 Hundred millions of yen
    Segment profit239 Hundred millions of yen
    Year-on-year changeRevenue +¥29.9 billion, profit +¥4.6 billion
  • Trading Business
    Revenue13,330 Hundred millions of yen
    Segment profit402 Hundred millions of yen
    Year-on-year changeRevenue ▲¥105.5 billion, profit ▲¥7.7 billion
Medium-term management plan targets
  • Consolidated business profit4,000 Hundred millions of yen
    Target fiscal yearFY2027
    Comparison with actual resultsFY2025 actual: ¥166.3 billion (excluding inventory valuation differences and other items)
  • ROEAt least 10
    Target fiscal yearFY2027
    Comparison with actual resultsFY2025 actual: 2.7%
  • Business profit (JFE Vision 2035)7,000 Hundred millions of yen
    Target fiscal yearFY2035
Financial targets
  • Debt/EBITDA
    TargetApproximately 3x
    Actual results4.8x
    Target fiscal yearFY2027
  • D/E ratio
    TargetApproximately 60%
    Actual results59.4%
    Target fiscal yearFY2027
  • ROE
    TargetAt least 10%
    Actual results2.7%
    Target fiscal yearFY2027
Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
¥100 100 million/month, approximately
DetailsCost impact if tensions in the Middle East persist and crude oil prices remain around WTI $100/bbl
Orders received and order backlog
Orders received
8,361 Hundred millions of yen
Order backlog
12,235 Hundred millions of yen
Capital expenditures
¥4,728 100 million FY2025 capital expenditures and investments/financing
Annual Dividend
FY2025
¥80 per share
BreakdownProposed: ¥40 interim dividend, ¥40 year-end dividend
Fiscal 2026
¥80 per share
Payout ratio
30 Approximately %
Additional informationAnnual dividend floor of ¥80/share
Contents of this document
ItemDetails
Document typePresentation materials on financial results
Fiscal Period CoveredFiscal year ending March 2026
Net Sales45,392 Hundred millions of yen
Operating profit¥1,353 100 million (business profit)
Ordinary income¥874 100 million (profit before tax, IFRS)
Net income¥701 100 million (profit for the year)
Results for the three months of the current quarterRevenue 11,590 Hundred millions of yen / Business profit 379 Hundred millions of yen / Segment profit 313 Hundred millions of yen / Pretax profit 82 Hundred millions of yen / Profit for the period 93 Hundred millions of yen
Full-year earnings forecastRevenue 48,000 Hundred millions of yen / Business profit 2,150 Hundred millions of yen / Pretax profit 1,900 Hundred millions of yen / Profit for the period 1,500 Hundred millions of yen / Segment profit 1,750 Hundred millions of yen
Segment resultsSegment Steel business / Revenue 30,884 Hundred millions of yen / Segment profit 380 Hundred millions of yen / Year-on-year change Revenue ▲¥276.7 billion, profit +¥1.7 billion, Segment Engineering Business / Revenue 5,997 Hundred millions of yen / Segment profit 239 Hundred millions of yen / Year-on-year change Revenue +¥29.9 billion, profit +¥4.6 billion, Segment Trading Business / Revenue 13,330 Hundred millions of yen / Segment profit 402 Hundred millions of yen / Year-on-year change Revenue ▲¥105.5 billion, profit ▲¥7.7 billion
Breakdown of Factors Affecting the ChangeSubject Steel business segment profit (FY2024 → FY2025) / Costs 270 Hundred millions of yen / Volume and composition -120 Hundred millions of yen / Spread -780 Hundred millions of yen / Inventory valuation differences and other items 700 Hundred millions of yen / Other -53 Hundred millions of yen, Subject Steel business segment profit (FY2025 actual → FY2026 forecast) / Costs 350 Hundred millions of yen / Volume and composition 100 Hundred millions of yen / Spread -200 Hundred millions of yen / Inventory valuation differences and other items 610 Hundred millions of yen / Other -240 Hundred millions of yen
Key KPIsStandalone crude steel production 2,137 10,000 tonnes, Consolidated crude steel production 2,255 10,000 tonnes, Standalone steel shipments 1,886 10,000 tonnes, Steel export ratio 40.2 %, Average steel price ¥120.7 thousand/t, ROE 2.7 %, Debt/EBITDA multiple 4.8 times, D/E ratio 59.4 %
Unit price and quantity metricsStandalone crude steel production 2,137 10,000 tonnes / Standalone steel shipments 1,886 10,000 tonnes / Average steel price ¥120.7 thousand/t
Assumptions Underlying the Business OutlookExchange rate ¥155 /US$, approximately, Standalone crude steel production 2,150 10,000 tonnes/year, approximately, Iron ore price FOB$90～$100, Coking coal price 230 FOB$/t, approximately, Crude oil price (risk assumption) 100 WTI $/bbl, approximately
Risk amount incorporated into the outlook¥100 100 million/month, approximately
Medium-term management plan targets4,000 Hundred millions of yen, At least 10, 7,000 Hundred millions of yen
Financial targetsIndicator Debt/EBITDA / Target Approximately 3x / Actual results 4.8x / Target fiscal year FY2027, Indicator D/E ratio / Target Approximately 60% / Actual results 59.4% / Target fiscal year FY2027, Indicator ROE / Target At least 10% / Actual results 2.7% / Target fiscal year FY2027
Annual DividendFY2025 ¥80 per share / Fiscal 2026 ¥80 per share
Payout ratio30 Approximately %
Capital expenditures¥4,728 100 million (FY2025 capital expenditures and investments/financing)
Orders received and order backlogOrders received 8,361 Hundred millions of yen / Order backlog 12,235 Hundred millions of yen
New initiativesRestructuring of the flat steel business, Restructuring of the group’s section steel business, Consideration of collaboration with the Yamato Kogyo Group and Yodogawa Steel Works, Expansion of manufacturing capacity at J2ES and J2ES Nashik, Advancement of the JJSL integrated steelworks joint venture, Construction of the Kurashiki innovative electric furnace, Basic agreement with Mitsubishi Corporation on a joint power and data center business, Completion of the transition of core systems to open systems and deployment through JFE Resolus®
Items this document does not state (10)
Gross Profit MarginOperating profit marginSelling, general and administrative expensesProgress against full-year forecastSelf-assessment against the planNumber of stores and locationsNumber of employeesAcquisition of treasury sharesMarket 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 slowdown in the Chinese economy, protectionist moves including US tariffs, and heightened tensions in the Middle East weakened steel supply and demand, market conditions and logistics. Higher prices for coking coal and other raw materials, weak domestic and overseas steel markets, the lag in reflecting changes in raw material prices in selling prices, and lower steel shipments were among the factors behind the decline in profit in FY2025. In FY2026, the company expects higher steel selling prices, benefits from operating improvements and capital investment, expansion of high-value-added products, execution of booked projects, and a recovery in its Americas business.

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Investor Meeting Materials for the Fiscal Year Ending March 2026 Results | JFE Holdings,Inc. (5411) timely disclosure | Komori