Komori
Financial results presentation5471Daido Steel Co.,Ltd.Iron & Steel, Nonferrous Metals

Earnings Briefing for the Fiscal Year Ending March 2026

In fiscal 2025, revenue, operating income, profit before tax and net income exceeded the previous fiscal year, while adjusted operating income declined. For fiscal 2026, the company plans revenue of ¥630.0 billion and adjusted operating income of ¥40.1 billion, and expects to increase its annual dividend to ¥52 per share.

Worth reading
90Important
Scored from 5 of 6 sections
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
2
¥100 million (year-on-year change in the fiscal 2026 forecast for adjusted operating income)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationFiscal year ended March 2025 and full-year outlook for the fiscal 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 Sales¥5,781 100 million+0.6%
Operating profit¥421 100 million+6.9%
Net income¥326 100 million+15.2%
Full-year earnings forecast
Revenue
¥6,300 100 million
Operating profit
¥400 100 million
Adjusted operating profit
¥401 100 million
Income before taxes
¥420 100 million
Profit for the period attributable to owners of the parent
¥275 100 million
Annual Dividend
¥52 per share
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Year-on-year change in fiscal 2025 adjusted operating income
Volume changes4
Price changes-65
Market prices for raw materials and fuels114
Other changes in details-41
Variable costs-5
Fixed Costs-48
Variance from the fiscal 2025 forecast for adjusted operating income
Volume changes14
Price changes-2
Market prices for raw materials and fuels10
Other changes in details4
Variable costs-1
Fixed Costs5
Year-on-year change in the fiscal 2026 outlook for adjusted operating income
Volume changes54
Price changes70
Market prices for raw materials and fuels-97
Other changes in details43
Variable costs-69
Fixed Costs1
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Steel product sales volume1,042 thousand tonnes/year
Foreign Exchange155 thousand tonnes/year
Foreign exchange unitYen/Dollar
Ferrous scrap benchmark price51 thousand tonnes/year
Ferrous scrap unit¥ thousand/t
LME nickel8 thousand tonnes/year
Nickel unit$/lb
Dubai crude oil69.8 thousand tonnes/year
Crude oil unit$/B
Production volume of Japanese automakers25 thousand tonnes/year
Automobile production unitmillion vehicles
Crude oil assumptions for 1Q fiscal 202690 thousand tonnes/year
Unit for crude oil assumptions for 1Q fiscal 2026$/B
Crude oil assumptions from 2Q fiscal 2026 onward63 thousand tonnes/year
Unit for crude oil assumptions from 2Q fiscal 2026 onward$/B
New initiatives
  • Promote strategic investments
  • Improve labor productivity through DX initiatives
  • Create synergies through integrated operation of the sales, manufacturing and planning functions with 日本高周波鋼業
  • Expand products for growth markets
  • High-alloy process reform project
Key KPIsA metric the company considers important as a management benchmark.
  • Steel product sales volume1,025 thousand tonnes
    Year on year against the same period last year+1.0%
  • Assumed production volume of Japanese automakers25 million vehicles
    Year on year against the same period last year+1.6%
  • Regional share of Japanese automakers' vehicle sales in Japan93%
  • Regional share of Japanese automakers' vehicle sales in ASEAN61%
  • Regional share of Japanese automakers' vehicle sales in North America38%
Segment results
  • Specialty steel materials
    Revenue¥2,078 100 million (YoY -1.1%)
    Operating profit¥134 100 million (YoY +10.7%)
    Adjusted operating profit¥113 100 million (YoY -13.7%)
  • Functional and magnetic materials
    Revenue¥1,998 100 million (YoY -0.5%)
    Operating profit¥149 100 million (YoY +35.5%)
    Adjusted operating profit¥134 100 million (YoY -2.9%)
  • Automotive parts and industrial machinery parts
    Revenue¥1,179 100 million (YoY +4.3%)
    Operating profit¥82 100 million (YoY -27.4%)
    Adjusted operating profit¥94 100 million (YoY -21.0%)
  • Engineering
    Revenue¥266 100 million (YoY +10.4%)
    Operating profit¥26 100 million (YoY +18.2%)
    Adjusted operating profit¥27 100 million (YoY +17.4%)
  • Distribution and services
    Revenue¥260 100 million (YoY -3.0%)
    Operating profit¥30 100 million (YoY +7.1%)
    Adjusted operating profit¥31 100 million (YoY +6.9%)
Medium-term management plan targets
Adjusted operating profit¥40 billion or more
Operating profit¥40 billion or more
Target fiscal yearFiscal 2026
Comparison with actual resultsThe fiscal 2026 outlook is adjusted operating income of ¥40.1 billion and operating income of ¥40.0 billion
Financial targets
ROE
Actual results7.2%
Debt-to-equity ratio
Actual results0.38
Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
¥12 100 million
DetailsCost deterioration due to higher crude oil prices amid tensions in the Middle East
Market Size / Share
Regional share of Japanese automakers' vehicle salesJapan 93%, ASEAN 61%, North America 38%, China 25%, Europe 9% (2026 assumptions)
Capital expenditures
¥612 100 million FY2026
Annual Dividend
FY2025
Annual¥49 per share
Interim¥22 per share
End of period¥27 per share
Fiscal 2026 outlook
Annual¥52 per share
Interim¥24 per share
End of period¥28 per share
Payout ratio
FY202530.3 %
Fiscal 2026 outlook37.8 %
Fiscal 2025 excluding one-time effects35.6 %
Fiscal 2026 outlook excluding one-time effects38.4 %
DOE floor2.5 %
Acquisition of treasury shares
Past results
  • ¥85 100 million
    TimingNovember
  • ¥66 100 million
    TimingJuly
Going forwardThe company is also considering share repurchases
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFiscal year ended March 2025 and full-year outlook for the fiscal year ending March 2026
Net Sales¥5,781 100 million (YoY +0.6%)
Operating profit¥421 100 million (YoY +6.9%)
Net income¥326 100 million (YoY +15.2%)
Full-year earnings forecastRevenue ¥6,300 100 million / Operating profit ¥400 100 million / Adjusted operating profit ¥401 100 million / Income before taxes ¥420 100 million / Profit for the period attributable to owners of the parent ¥275 100 million / Annual Dividend ¥52 per share
Segment resultsSegment Specialty steel materials / Revenue ¥2,078 100 million (YoY -1.1%) / Operating profit ¥134 100 million (YoY +10.7%) / Adjusted operating profit ¥113 100 million (YoY -13.7%), Segment Functional and magnetic materials / Revenue ¥1,998 100 million (YoY -0.5%) / Operating profit ¥149 100 million (YoY +35.5%) / Adjusted operating profit ¥134 100 million (YoY -2.9%), Segment Automotive parts and industrial machinery parts / Revenue ¥1,179 100 million (YoY +4.3%) / Operating profit ¥82 100 million (YoY -27.4%) / Adjusted operating profit ¥94 100 million (YoY -21.0%), Segment Engineering / Revenue ¥266 100 million (YoY +10.4%) / Operating profit ¥26 100 million (YoY +18.2%) / Adjusted operating profit ¥27 100 million (YoY +17.4%), Segment Distribution and services / Revenue ¥260 100 million (YoY -3.0%) / Operating profit ¥30 100 million (YoY +7.1%) / Adjusted operating profit ¥31 100 million (YoY +6.9%)
Breakdown of Factors Affecting the ChangeYear-on-year change in fiscal 2025 adjusted operating income Volume changes 4 / Price changes -65 / Market prices for raw materials and fuels 114 / Other changes in details -41 / Variable costs -5 / Fixed Costs -48 / Variance from the fiscal 2025 forecast for adjusted operating income Volume changes 14 / Price changes -2 / Market prices for raw materials and fuels 10 / Other changes in details 4 / Variable costs -1 / Fixed Costs 5 / Year-on-year change in the fiscal 2026 outlook for adjusted operating income Volume changes 54 / Price changes 70 / Market prices for raw materials and fuels -97 / Other changes in details 43 / Variable costs -69 / Fixed Costs 1
Key KPIsIndicator Steel product sales volume / Value 1,025 thousand tonnes / Year on year against the same period last year 1 thousand tonnes, Indicator Assumed production volume of Japanese automakers / Value 25 million vehicles / Year on year against the same period last year 1.6 million vehicles, Indicator Regional share of Japanese automakers' vehicle sales in Japan / Value 93% / Year on year against the same period last year Not disclosed, Indicator Regional share of Japanese automakers' vehicle sales in ASEAN / Value 61% / Year on year against the same period last year Not disclosed, Indicator Regional share of Japanese automakers' vehicle sales in North America / Value 38% / Year on year against the same period last year Not disclosed
Assumptions Underlying the Business OutlookSteel product sales volume 1,042 thousand tonnes/year / Foreign Exchange 155 thousand tonnes/year / Foreign exchange unit Yen/Dollar / Ferrous scrap benchmark price 51 thousand tonnes/year / Ferrous scrap unit ¥ thousand/t / LME nickel 8 thousand tonnes/year / Nickel unit $/lb / Dubai crude oil 69.8 thousand tonnes/year / Crude oil unit $/B / Production volume of Japanese automakers 25 thousand tonnes/year / Automobile production unit million vehicles / Crude oil assumptions for 1Q fiscal 2026 90 thousand tonnes/year / Unit for crude oil assumptions for 1Q fiscal 2026 $/B / Crude oil assumptions from 2Q fiscal 2026 onward 63 thousand tonnes/year / Unit for crude oil assumptions from 2Q fiscal 2026 onward $/B
Risk amount incorporated into the outlookAmount ¥12 100 million / Details Cost deterioration due to higher crude oil prices amid tensions in the Middle East
Medium-term management plan targetsAdjusted operating profit ¥40 billion or more / Operating profit ¥40 billion or more / Target fiscal year Fiscal 2026 / Comparison with actual results The fiscal 2026 outlook is adjusted operating income of ¥40.1 billion and operating income of ¥40.0 billion
Financial targetsROE Actual results 7.2% / Debt-to-equity ratio Actual results 0.38
Annual DividendFY2025 Annual ¥49 per share / Interim ¥22 per share / End of period ¥27 per share / Fiscal 2026 outlook Annual ¥52 per share / Interim ¥24 per share / End of period ¥28 per share
Payout ratioFY2025 30.3 % / Fiscal 2026 outlook 37.8 % / Fiscal 2025 excluding one-time effects 35.6 % / Fiscal 2026 outlook excluding one-time effects 38.4 % / DOE floor 2.5 %
Acquisition of treasury sharesPast results Amount ¥85 100 million / Timing November, Amount ¥66 100 million / Timing July / Going forward The company is also considering share repurchases
Capital expenditures¥612 100 million (FY2026)
Market Size / ShareRegional share of Japanese automakers' vehicle sales Japan 93%, ASEAN 61%, North America 38%, China 25%, Europe 9% (2026 assumptions)
New initiativesPromote strategic investments, Improve labor productivity through DX initiatives, Create synergies through integrated operation of the sales, manufacturing and planning functions with 日本高周波鋼業, Expand products for growth markets, High-alloy process reform project
Items this document does not state (12)
Ordinary incomeGross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsNumber of employeesOrders received and order backlogKey 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 increases in revenue and profit in fiscal 2025 were driven by higher steel product sales volumes and increased volumes related to automobiles and industrial machinery. Factors reducing adjusted operating income included lower demand for oil drilling-related free-forged products, the scrap steel sliding gap and measures to address wage increases. For fiscal 2026, the company expects higher sales of stainless steel, strip steel, products for semiconductor manufacturing equipment and free-forged products, while factoring in surging market prices for ferrous scrap and crude oil, as well as the impact of inflation.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Earnings Briefing for the Fiscal Year Ending March 2026 | Daido Steel Co.,Ltd. (5471) timely disclosure | Komori