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

Briefing on Financial Results for the Second Quarter of the Fiscal Year Ending March 2027

In the first half of fiscal 2026, revenue and profit increased year on year on higher orders for industrial machinery, semiconductors and related products, exceeding the forecasts announced in May. As a result, the full-year operating profit forecast was raised to ¥46 billion and the annual dividend forecast to ¥56 per share.

Worth reading
90Important
Scored from 5 of 6 sections
Direction
Improvement
Direction inferred from the company’s description.
Scale
60
¥100 million (increase from the 15 May forecast for full-year operating profit)
Wording
Definitive
How definitive the wording is.

Contents of this document

Financial results presentationSecond quarter of the fiscal year ending March 2027 (first half of fiscal 2026)13 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥3,307 100 million+16.2%
Operating profit¥261 100 million+41.1%
Ordinary income¥273 100 million+38.6%
Net income¥183 100 million+41.9%
Operating profit margin7.9 %
Results for the three months of the current quarter
Revenue
1Q¥1,635 100 million
2Q¥1,672 100 million
Operating profit
1Q¥131 100 million
2Q¥130 100 million
Adjusted operating profit
1Q¥115 100 million
2Q¥117 100 million
Pretax profit
1Q¥143 100 million
2Q¥130 100 million
Profit for the period attributable to owners of the parent
1Q¥91 100 million
2Q¥92 100 million
Full-year earnings forecast
Steel product sales volume
1,063 thousand tonnes/year
Revenue
¥6,800 100 million
Operating profit
¥460 100 million
Adjusted operating profit
¥450 100 million
Pretax profit
¥470 100 million
Profit for the period attributable to owners of the parent
¥310 100 million
Annual Dividend
¥56 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
Volume changes¥48 100 million
Price changes¥-82 100 million
Market prices for raw materials and fuels¥-7 100 million
Other changes in details¥29 100 million
Variable costs¥-19 100 million
Fixed Costs¥-7 100 million
Newly consolidated¥71 100 million
Difference from 15 May forecast
Volume changes¥18 100 million
Price changes¥-59 100 million
Market prices for raw materials and fuels¥16 100 million
Other changes in details¥-1 100 million
Variable costs¥15 100 million
Fixed Costs¥4 100 million
Newly consolidated¥0 100 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Automotive Production23.8 million units Japanese automakers' vehicle production volume in fiscal 2026
Steel product sales volume1,063 million units Japanese automakers' vehicle production volume in fiscal 2026
Unit 2thousand tonnes/year
Foreign Exchange155 million units Japanese automakers' vehicle production volume in fiscal 2026
Unit 3Yen/dollar
Ferrous scrap benchmark price51 million units Japanese automakers' vehicle production volume in fiscal 2026
Unit 4¥ thousand/tonne (second half of fiscal 2026)
Dubai crude oil95 million units Japanese automakers' vehicle production volume in fiscal 2026
Unit 5dollars/B (second half of fiscal 2026)
Stainless steel volume for semiconductor manufacturing equipment50% increase versus the first half
New initiatives
  • Strategic investments, including high-alloy process reform
  • DX initiatives to improve labor productivity
  • Strengthening activities to create synergies with 日本高周波鋼業
  • Launch of collaboration among the development, manufacturing and sales teams of 東北特殊鋼
Key KPIsA metric the company considers important as a management benchmark.
  • Steel Product Sales Volume (Non-consolidated)531 thousand tonnes
    Year on year against the same period last year+27.0%
  • Assumed production volume of Japanese automakers23.8 million units/year
  • ROE7.5 %
  • Debt-to-equity ratio0.46 times
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Steel product sales volume
First-half results531 thousand tonnes
Year-on-year change27 thousand tonnes
Revenue from Open-Die Forgings
First half of FY26¥43 100 million/month
Segment results
Specialty steel materials
Revenue¥1,200 100 million
Operating profit¥54 100 million
Adjusted operating profit¥50 100 million
Year on year against the same period last year
Revenue200
Operating profit-1
Adjusted operating profit-6
Functional and magnetic materials
Revenue¥1,212 100 million
Operating profit¥121 100 million
Adjusted operating profit¥99 100 million
Year on year against the same period last year
Revenue244
Operating profit58
Adjusted operating profit42
Automotive parts and industrial machinery parts
Revenue¥617 100 million
Operating profit¥59 100 million
Adjusted operating profit¥57 100 million
Year on year against the same period last year
Revenue25
Operating profit23
Adjusted operating profit14
Engineering
Revenue¥123 100 million
Operating profit¥4 100 million
Adjusted operating profit¥4 100 million
Year on year against the same period last year
Revenue-19
Operating profit-9
Adjusted operating profit-8
Distribution and services
Revenue¥155 100 million
Operating profit¥23 100 million
Adjusted operating profit¥22 100 million
Year on year against the same period last year
Revenue12
Operating profit5
Adjusted operating profit5
Financial targets
ROE
Actual results7.5 %
Debt-to-equity ratio
Actual results0.46 times
Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
Slide gap
Steel scrap and other¥-22 100 million
Energy¥-18 100 million
Total¥-40 100 million
Market Size / Share
Regional share of Japanese automakers' vehicle sales
Japan93% (fiscal 2026 estimate)
ASEAN69% (fiscal 2026 estimate)
North America38% (fiscal 2026 estimate)
China27% (fiscal 2026 estimate)
Europe11% (fiscal 2026 estimate)
Capital expenditures
¥559 100 million fiscal 2026 plan
Annual Dividend
¥56 per share
Interim28
End of period28
Payout ratio
36.1 %
Excluding one-off impacts38.7
Unit%
PolicyConsolidated payout ratio of 30% or more, with a DOE floor of 2.5%
Acquisition of treasury shares
Share buybacks under consideration (authorization and period: Not disclosed)
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredSecond quarter of the fiscal year ending March 2027 (first half of fiscal 2026)
Net Sales¥3,307 100 million (YoY +16.2%)
Operating profit¥261 100 million (YoY +41.1%)
Ordinary income¥273 100 million (YoY +38.6%)
Net income¥183 100 million (YoY +41.9%)
Operating profit margin7.9 %
Results for the three months of the current quarterRevenue 1Q ¥1,635 100 million / 2Q ¥1,672 100 million / Operating profit 1Q ¥131 100 million / 2Q ¥130 100 million / Adjusted operating profit 1Q ¥115 100 million / 2Q ¥117 100 million / Pretax profit 1Q ¥143 100 million / 2Q ¥130 100 million / Profit for the period attributable to owners of the parent 1Q ¥91 100 million / 2Q ¥92 100 million
Full-year earnings forecastSteel product sales volume 1,063 thousand tonnes/year / Revenue ¥6,800 100 million / Operating profit ¥460 100 million / Adjusted operating profit ¥450 100 million / Pretax profit ¥470 100 million / Profit for the period attributable to owners of the parent ¥310 100 million / Annual Dividend ¥56 per share
Segment resultsSpecialty steel materials Revenue ¥1,200 100 million / Operating profit ¥54 100 million / Adjusted operating profit ¥50 100 million / Year on year against the same period last year Revenue 200 / Operating profit -1 / Adjusted operating profit -6 / Functional and magnetic materials Revenue ¥1,212 100 million / Operating profit ¥121 100 million / Adjusted operating profit ¥99 100 million / Year on year against the same period last year Revenue 244 / Operating profit 58 / Adjusted operating profit 42 / Automotive parts and industrial machinery parts Revenue ¥617 100 million / Operating profit ¥59 100 million / Adjusted operating profit ¥57 100 million / Year on year against the same period last year Revenue 25 / Operating profit 23 / Adjusted operating profit 14 / Engineering Revenue ¥123 100 million / Operating profit ¥4 100 million / Adjusted operating profit ¥4 100 million / Year on year against the same period last year Revenue -19 / Operating profit -9 / Adjusted operating profit -8 / Distribution and services Revenue ¥155 100 million / Operating profit ¥23 100 million / Adjusted operating profit ¥22 100 million / Year on year against the same period last year Revenue 12 / Operating profit 5 / Adjusted operating profit 5
Breakdown of Factors Affecting the ChangeYear-on-year change Volume changes ¥48 100 million / Price changes ¥-82 100 million / Market prices for raw materials and fuels ¥-7 100 million / Other changes in details ¥29 100 million / Variable costs ¥-19 100 million / Fixed Costs ¥-7 100 million / Newly consolidated ¥71 100 million / Difference from 15 May forecast Volume changes ¥18 100 million / Price changes ¥-59 100 million / Market prices for raw materials and fuels ¥16 100 million / Other changes in details ¥-1 100 million / Variable costs ¥15 100 million / Fixed Costs ¥4 100 million / Newly consolidated ¥0 100 million
Key KPIsIndicator name Steel Product Sales Volume (Non-consolidated) / Value 531 thousand tonnes / Year on year against the same period last year 27 thousand tonnes, Indicator name Assumed production volume of Japanese automakers / Value 23.8 million units/year / Year on year against the same period last year Not disclosed, Indicator name ROE / Value 7.5 % / Year on year against the same period last year Not disclosed, Indicator name Debt-to-equity ratio / Value 0.46 times / Year on year against the same period last year Not disclosed
Unit price and quantity metricsSteel product sales volume First-half results 531 thousand tonnes / Year-on-year change 27 thousand tonnes / Revenue from Open-Die Forgings First half of FY26 ¥43 100 million/month / Year on year against the same period last year Not disclosed
Assumptions Underlying the Business OutlookAutomotive Production 23.8 million units (Japanese automakers' vehicle production volume in fiscal 2026) / Steel product sales volume 1,063 million units (Japanese automakers' vehicle production volume in fiscal 2026) / Unit 2 thousand tonnes/year / Foreign Exchange 155 million units (Japanese automakers' vehicle production volume in fiscal 2026) / Unit 3 Yen/dollar / Ferrous scrap benchmark price 51 million units (Japanese automakers' vehicle production volume in fiscal 2026) / Unit 4 ¥ thousand/tonne (second half of fiscal 2026) / Dubai crude oil 95 million units (Japanese automakers' vehicle production volume in fiscal 2026) / Unit 5 dollars/B (second half of fiscal 2026) / Stainless steel volume for semiconductor manufacturing equipment 50% increase versus the first half
Risk amount incorporated into the outlookSlide gap Steel scrap and other ¥-22 100 million / Energy ¥-18 100 million / Total ¥-40 100 million
Financial targetsROE Actual results 7.5 % / Debt-to-equity ratio Actual results 0.46 times
Annual Dividend¥56 per share
Payout ratio36.1 %
Acquisition of treasury sharesShare buybacks under consideration (authorization and period: Not disclosed)
Capital expenditures¥559 100 million (fiscal 2026 plan)
Market Size / ShareRegional share of Japanese automakers' vehicle sales Japan 93% (fiscal 2026 estimate) / ASEAN 69% (fiscal 2026 estimate) / North America 38% (fiscal 2026 estimate) / China 27% (fiscal 2026 estimate) / Europe 11% (fiscal 2026 estimate)
New initiativesStrategic investments, including high-alloy process reform, DX initiatives to improve labor productivity, Strengthening activities to create synergies with 日本高周波鋼業, Launch of collaboration among the development, manufacturing and sales teams of 東北特殊鋼
Items this document does not state (9)
Gross Profit MarginSelling, general and administrative expensesProgress against full-year forecastSelf-assessment against the planNumber of stores and locationsNumber of employeesMedium-term management plan targetsOrders 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.

Demand for and sales of high-function products, including stainless steel for semiconductor manufacturing equipment and open-die forgings, increased, while the newly consolidated results of 日本高周波鋼業 and 東北特殊鋼 contributed to profit. The company explained that although higher energy costs had a negative impact from the sliding-price gap, these profit-increasing factors outweighed it.

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.
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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.
Briefing on Financial Results for the Second Quarter of the Fiscal Year Ending March 2027 | Daido Steel Co.,Ltd. (5471) timely disclosure | Komori