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Earnings presentation5411JFE Holdings,Inc.Iron and Nonferrous Metals

Investor Meeting Materials for the Second Quarter of the Fiscal Year Ending March 2027

Business profit for the first half of FY2026 was ¥76.7 billion. However, due to the impact of torrential rain and typhoons in Chiba, higher crude oil and raw material prices, and other factors, the full-year FY2026 business profit forecast was lowered from ¥215.0 billion to ¥195.0 billion, and the net profit forecast from ¥150.0 billion to ¥130.0 billion. The annual dividend forecast of ¥80 was maintained.

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Contents of this document

Earnings presentationSecond quarter of the fiscal year ending March 202714 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥24,004 100 million+7.5%
Ordinary income¥706 100 million+107.0%
Net income¥537 100 million+101.9%
Operating profitNot disclosed (business profit: ¥76.7 billion)
Results for the three months of the current quarterJFE Steel standalone results for July–September: crude steel production of 5.06 million tonnes, steel shipments of 4.54 million tonnes, segment profit of ¥12.8 billion, average steel price of ¥134,100/t, and an exchange rate of ¥161.0/USD
Full-year earnings forecast
Revenue¥4.9 trillion
Business profit¥195.0 billion
Segment profit¥155 billion
Pretax profit¥165.0 billion
Profit for the period¥130 billion
Annual Dividend¥80/share
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
The ratio of high-value-added products was broadly in line with the plan. However, the benefits fell short of the medium-term assumptions due to weak market conditions and delays in the shift to electric vehicles.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Impact of torrential rain and typhoons in Chiba: business profit impact of -¥50.0 billion (volume: -¥25.0 billion, costs: -¥25.0 billion)
  • Steel business, first-half year-on-year change: costs +¥21.0 billion, volume and mix +¥7.0 billion, spread -¥64.0 billion, inventory valuation differences and other items +¥80.0 billion, other +¥2.1 billion
  • Steel business, full-year change from the previous forecast: impact of torrential rain and typhoons in Chiba -¥50.0 billion, costs ±¥0, volume and mix ±¥0, spread -¥18.0 billion, inventory valuation differences and other items +¥40.0 billion, other +¥8.0 billion
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Exchange rate: approximately ¥160/USD (approximately ¥160/USD in the second half)
  • WTI crude oil price: approximately $90/bbl
  • Iron ore: approximately $80–90/t FOB
  • Coking coal: approximately $270/t FOB
  • Standalone crude steel production: approximately 20.8 million tonnes
  • Domestic automobile production: at the same level as FY2025
New initiatives
  • JJSL Sambalpur steel plant capacity to be expanded from 4.5 million tonnes to 9.5 million tonnes by 2030
  • JFE商事鉄鋼建材 and JFE商事鋼管管材 to be integrated, with JFE商事スチールクロス to be launched in April 2027
  • Phase 2 expansion of electrical steel sheet capacity in Kurashiki, increased sales of heavy plate for offshore wind applications, and construction of a CGL for ultra-high-tensile steel in Fukuyama
Key KPIsA metric the company considers important as a management benchmark.
  • Standalone crude steel production: 10.31 million tonnes in the first half, approximately 20.8 million tonnes for the full year
  • High-value-added product ratio: 53% in FY2025, FY2026 target of 56%
  • Debt/EBITDA multiple: FY2026 forecast of 4.5x
  • D/E ratio: FY2026 forecast of 66.0%
  • ROE: FY2026 forecast of approximately 5%
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Standalone crude steel production: 10.31 million tonnes
  • Standalone steel shipments: 9.08 million tonnes
  • Average steel price: ¥129,100/t
  • High-value-added product ratio: 53% (FY2025 actual), 56% target (FY2026)
Segment results
Steel
Revenue¥1,585.6 billion (up ¥48.2 billion year on year)
Segment profit¥15.8 billion (up ¥21.1 billion year on year)
Engineering
Revenue¥305.2 billion (up ¥18.2 billion year on year)
Segment profit¥15.0 billion (up ¥2.4 billion year on year)
Trading Business
Revenue¥778.1 billion (up ¥130.6 billion year on year)
Segment profit¥24.2 billion (up ¥2.3 billion year on year)
Medium-term management plan targets
  • Eighth Mid-term Management Plan (FY2027): business profit of ¥400.0 billion, ROE of at least 10%, payout ratio of approximately 30%, and an annual dividend floor of ¥80 per share
  • JFE Vision 2035 (FY2035): business profit of ¥700.0 billion
Financial targets
  • FY2027 Debt/EBITDA multiple: approximately 3x
  • FY2027 D/E ratio: approximately 60%
  • FY2026 forecast Debt/EBITDA multiple: 4.5x
  • FY2026 forecast D/E ratio: 66.0%
Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
  • Impact of torrential rain and typhoons in Chiba: business profit impact of -¥50.0 billion
  • Cost impact of the situation in the Middle East: -¥70.0 billion annually
  • Individually disclosed disaster-related items: -¥5.2 billion
Orders received and order backlog
JFE Engineering order intake of ¥309.7 billion and order backlog of ¥1.17 trillion (FY2026 forecast)
Capital expenditures
¥5,100 100 million
Annual Dividend
¥80 per share (forecast interim dividend of ¥40 and year-end dividend of ¥40)
Payout ratio
Approximately 30%, with an annual floor of ¥80/share
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredSecond quarter of the fiscal year ending March 2027
Net Sales¥24,004 100 million (YoY +7.5%)
Operating profitNot disclosed (business profit: ¥76.7 billion)
Ordinary income¥706 100 million (YoY +107.0%)
Net income¥537 100 million (YoY +101.9%)
Results for the three months of the current quarterJFE Steel standalone results for July–September: crude steel production of 5.06 million tonnes, steel shipments of 4.54 million tonnes, segment profit of ¥12.8 billion, average steel price of ¥134,100/t, and an exchange rate of ¥161.0/USD
Full-year earnings forecastRevenue ¥4.9 trillion / Business profit ¥195.0 billion / Segment profit ¥155 billion / Pretax profit ¥165.0 billion / Profit for the period ¥130 billion / Annual Dividend ¥80/share
Self-assessment against the planThe ratio of high-value-added products was broadly in line with the plan. However, the benefits fell short of the medium-term assumptions due to weak market conditions and delays in the shift to electric vehicles.
Segment resultsSteel Revenue ¥1,585.6 billion (up ¥48.2 billion year on year) / Segment profit ¥15.8 billion (up ¥21.1 billion year on year) / Engineering Revenue ¥305.2 billion (up ¥18.2 billion year on year) / Segment profit ¥15.0 billion (up ¥2.4 billion year on year) / Trading Business Revenue ¥778.1 billion (up ¥130.6 billion year on year) / Segment profit ¥24.2 billion (up ¥2.3 billion year on year)
Breakdown of Factors Affecting the ChangeImpact of torrential rain and typhoons in Chiba: business profit impact of -¥50.0 billion (volume: -¥25.0 billion, costs: -¥25.0 billion), Steel business, first-half year-on-year change: costs +¥21.0 billion, volume and mix +¥7.0 billion, spread -¥64.0 billion, inventory valuation differences and other items +¥80.0 billion, other +¥2.1 billion, Steel business, full-year change from the previous forecast: impact of torrential rain and typhoons in Chiba -¥50.0 billion, costs ±¥0, volume and mix ±¥0, spread -¥18.0 billion, inventory valuation differences and other items +¥40.0 billion, other +¥8.0 billion
Key KPIsStandalone crude steel production: 10.31 million tonnes in the first half, approximately 20.8 million tonnes for the full year, High-value-added product ratio: 53% in FY2025, FY2026 target of 56%, Debt/EBITDA multiple: FY2026 forecast of 4.5x, D/E ratio: FY2026 forecast of 66.0%, ROE: FY2026 forecast of approximately 5%
Unit price and quantity metricsStandalone crude steel production: 10.31 million tonnes, Standalone steel shipments: 9.08 million tonnes, Average steel price: ¥129,100/t, High-value-added product ratio: 53% (FY2025 actual), 56% target (FY2026)
Assumptions Underlying the Business OutlookExchange rate: approximately ¥160/USD (approximately ¥160/USD in the second half), WTI crude oil price: approximately $90/bbl, Iron ore: approximately $80–90/t FOB, Coking coal: approximately $270/t FOB, Standalone crude steel production: approximately 20.8 million tonnes, Domestic automobile production: at the same level as FY2025
Risk amount incorporated into the outlookImpact of torrential rain and typhoons in Chiba: business profit impact of -¥50.0 billion, Cost impact of the situation in the Middle East: -¥70.0 billion annually, Individually disclosed disaster-related items: -¥5.2 billion
Medium-term management plan targetsEighth Mid-term Management Plan (FY2027): business profit of ¥400.0 billion, ROE of at least 10%, payout ratio of approximately 30%, and an annual dividend floor of ¥80 per share, JFE Vision 2035 (FY2035): business profit of ¥700.0 billion
Financial targetsFY2027 Debt/EBITDA multiple: approximately 3x, FY2027 D/E ratio: approximately 60%, FY2026 forecast Debt/EBITDA multiple: 4.5x, FY2026 forecast D/E ratio: 66.0%
Annual Dividend¥80 per share (forecast interim dividend of ¥40 and year-end dividend of ¥40)
Payout ratioApproximately 30%, with an annual floor of ¥80/share
Capital expenditures¥5,100 100 million
Orders received and order backlogJFE Engineering order intake of ¥309.7 billion and order backlog of ¥1.17 trillion (FY2026 forecast)
New initiativesJJSL Sambalpur steel plant capacity to be expanded from 4.5 million tonnes to 9.5 million tonnes by 2030, JFE商事鉄鋼建材 and JFE商事鋼管管材 to be integrated, with JFE商事スチールクロス to be launched in April 2027, Phase 2 expansion of electrical steel sheet capacity in Kurashiki, increased sales of heavy plate for offshore wind applications, and construction of a CGL for ultra-high-tensile steel in Fukuyama
Items this document does not state (9)
Gross Profit MarginOperating profit marginSelling, general and administrative expensesProgress against full-year forecastNumber 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 company cited lower production and higher costs caused by torrential rain and typhoons in Chiba, the situation in the Middle East, higher crude oil and raw material prices, excess production in China, protectionism in various countries, and other factors. Meanwhile, the India business, the offshore wind monopile business, and the recovery of the Americas business contributed to earnings.

How to read this page

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Investor Meeting Materials for the Second Quarter of the Fiscal Year Ending March 2027 | JFE Holdings,Inc. (5411) timely disclosure | Komori