Worth reading
81Important
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
62
¥100 million (increase from actual operating profit of ¥4.8 billion in fiscal 2025 to the fiscal 2028 target of ¥11.0 billion)Wording
Avoiding a definitive answer
How definitive the wording is.Items stated in the management plan
FormulatedNet Sales+0.1%
基準 2,025Target2,028hundred million
Operating profit+0.1%
基準 2,025Target2,028hundred million
Operating profit margin+3.0pt
基準 2,025Target2,028%
Net income for the current fiscal year+0.1%
基準 2,025Target2,028hundred million
ROE+3.0pt
基準 2,025Target2,028%
ROIC+3.0pt
基準 2,025Target2,028%
Each line is the climb from the baseline the document states to the target it sets. The slope is scaled against the largest climb in this document. For metrics expressed as percentages, differences are shown in percentage points (pt).The increase shown by the dotted line is calculated from the two reported figures because the company did not provide the amount of growth.
What happened to the previous planNet Sales 1,850 / Operating profit 110 / Profit for the period 50 / ROE 8% or higher / ROIC 6.5% / Operating profit margin 6.0% / Interest-Bearing Debt 516 / Net debt-to-equity ratio 0.6 / Equity ratio 35% / PBR 1.0 / Payout ratio 30% → Net Sales 1,546 / Operating profit 48 / Profit for the period 31 / ROE 6.7% / ROIC 3.5% / Operating profit margin 3.1% / Interest-Bearing Debt 434 / Net debt-to-equity ratio 0.5 / Equity ratio 34% / PBR 0.5 / Payout ratio 40%（Net Sales △16.4% / Operating profit △56.4% / Profit for the period △38.0% / ROE Not disclosed / ROIC △46.2% / Operating profit margin △48.3% / Interest-Bearing Debt △15.9% / Net debt-to-equity ratio △12.5% / Equity ratio △2.9% / PBR △50.0% / Payout ratio +33.3%）
Total investment plan¥18.4 billion (the total of the amounts shown for growth investments of ¥6.4 billion, rationalization investments and other investments of ¥5.0 billion, and aging-equipment renewal and environmental measures investments of ¥7.0 billion. The materials do not explicitly state a total amount.)
Investment amount by sectorField Growth Investment / Amount ¥6.4 billion, Field Rationalization investments and other investments / Amount ¥5 billion, Field Aging-equipment renewal and environmental measures investments / Amount ¥7 billion, Field DX and M&A / Amount ¥2.2 billion
Statements about the use of capital
Payout ratio / DOE policyDuring the period covered by the 2026 Medium-Term Management Plan, the Company will shift to stable dividends based on a DOE of 3.5%. Previously, for fiscal 2025, the Company set a consolidated payout ratio of 40% as a guideline and maintained an annual dividend per share of at least ¥80.The payout ratio is the proportion of profit paid out as dividends, while DOE is the ratio of dividends to net assets.
Treasury share acquisition policyThe Company will make flexible decisions based on investment opportunities, capital levels, share price levels, and its financial condition.
Self-assessment of PBR and share pricePBR was 0.5x in fiscal 2025, remaining below 1x. The Company aims for a PBR of at least 1x in fiscal 2028.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Core business restructuring scenario
02Strategic business monetization scenario
03Manufacturing DX / development and design DX
04Direction of strategic alliances and M&A
05Sharing the purpose and giving concrete form to organizational execution capabilities
06Human Capital Strategy
Plan assumptionsThe market environment for the core businesses is assumed to remain flat., Market expansion is expected during the 2026 Medium-Term Management Plan period for strategic businesses excluding offshore wind-related businesses., The impact of the situation in the Middle East is not incorporated into this plan.
Segment targetSegment Steel products / Net Sales ¥88 billion / Operating profit margin 4.5% / Operating profit ¥4 billion, Segment Springs / Net Sales ¥73.1 billion / Operating profit margin 6.6% / Operating profit ¥4.8 billion, Segment Advanced Materials / Net Sales ¥12.7 billion / Operating profit margin 8.7% / Operating profit ¥1.1 billion, Segment Equipment / Net Sales ¥14.0 billion / Operating profit margin 7.9% / Operating profit ¥1.1 billion, Segment Consolidation eliminations and other / Net Sales -¥9.8 billion / Operating profit margin Not disclosed / Operating profit Not disclosed
Risks identified by the company
The possibility that the impact of the blast furnace problems at the Muroran Complex will persist through the first half of fiscal 2026
Declining demand for the domestic steel products business and a flat market environment
The impact of the situation in the Middle East (not incorporated into this plan)
Slower progress toward electric vehicles
The possibility that future business performance will differ from current forecasts
Reason for revision or withdrawal
The financial targets for operating profit, ROE, ROIC, and other metrics under the previous medium-term management plan were not achieved, due to factors including sluggishness in the domestic steel products business affected by blast furnace problems at the Muroran Complex. Under the next medium-term management plan, the Company will make a fresh effort to transform the quality of earnings and improve execution effectiveness by building on the foundation established under the previous plan.
| Item | Details |
|---|---|
| Plan name | 2026 Medium-Term Management Plan |
| Plan period | Fiscal 2026 through fiscal 2028 |
| Progress against the plan | Formulated |
| Sales Target | Fiscal 2025 actual 1,546 → Fiscal 2028 medium-term plan 1,780（+15.1%） |
| Operating profit target | Fiscal 2025 actual 48 → Fiscal 2028 medium-term plan 110（+129.2%） |
| Operating profit margin target | Fiscal 2025 actual 3.1 → Fiscal 2028 medium-term plan 6.2（+100.0%） |
| Net income target | Fiscal 2025 actual 31 → Fiscal 2028 medium-term plan 65（+109.7%） |
| ROE target | Fiscal 2025 actual 6.7 → Fiscal 2028 target: at least 10%（+49.3% or more） |
| ROIC target | Fiscal 2025 actual 3.5 → Fiscal 2028 target: at least 6.5%（+85.7% or more） |
| Payout ratio / DOE policy | During the period covered by the 2026 Medium-Term Management Plan, the Company will shift to stable dividends based on a DOE of 3.5%. Previously, for fiscal 2025, the Company set a consolidated payout ratio of 40% as a guideline and maintained an annual dividend per share of at least ¥80. |
| Treasury share acquisition policy | The Company will make flexible decisions based on investment opportunities, capital levels, share price levels, and its financial condition. |
| Self-assessment of PBR and share price | PBR was 0.5x in fiscal 2025, remaining below 1x. The Company aims for a PBR of at least 1x in fiscal 2028. |
| Total investment plan | ¥18.4 billion (the total of the amounts shown for growth investments of ¥6.4 billion, rationalization investments and other investments of ¥5.0 billion, and aging-equipment renewal and environmental measures investments of ¥7.0 billion. The materials do not explicitly state a total amount.) |
| Investment amount by sector | Field Growth Investment / Amount ¥6.4 billion, Field Rationalization investments and other investments / Amount ¥5 billion, Field Aging-equipment renewal and environmental measures investments / Amount ¥7 billion, Field DX and M&A / Amount ¥2.2 billion |
| Segment target | Segment Steel products / Net Sales ¥88 billion / Operating profit margin 4.5% / Operating profit ¥4 billion, Segment Springs / Net Sales ¥73.1 billion / Operating profit margin 6.6% / Operating profit ¥4.8 billion, Segment Advanced Materials / Net Sales ¥12.7 billion / Operating profit margin 8.7% / Operating profit ¥1.1 billion, Segment Equipment / Net Sales ¥14.0 billion / Operating profit margin 7.9% / Operating profit ¥1.1 billion, Segment Consolidation eliminations and other / Net Sales -¥9.8 billion / Operating profit margin Not disclosed / Operating profit Not disclosed |
| Plan assumptions | The market environment for the core businesses is assumed to remain flat., Market expansion is expected during the 2026 Medium-Term Management Plan period for strategic businesses excluding offshore wind-related businesses., The impact of the situation in the Middle East is not incorporated into this plan. |
| Key initiatives | Core business restructuring scenario, Strategic business monetization scenario, Manufacturing DX / development and design DX, Direction of strategic alliances and M&A, Sharing the purpose and giving concrete form to organizational execution capabilities, Human Capital Strategy |
| Results under the previous plan | Net Sales 1,850 / Operating profit 110 / Profit for the period 50 / ROE 8% or higher / ROIC 6.5% / Operating profit margin 6.0% / Interest-Bearing Debt 516 / Net debt-to-equity ratio 0.6 / Equity ratio 35% / PBR 1.0 / Payout ratio 30% → Net Sales 1,546 / Operating profit 48 / Profit for the period 31 / ROE 6.7% / ROIC 3.5% / Operating profit margin 3.1% / Interest-Bearing Debt 434 / Net debt-to-equity ratio 0.5 / Equity ratio 34% / PBR 0.5 / Payout ratio 40%（Net Sales △16.4% / Operating profit △56.4% / Profit for the period △38.0% / ROE Not disclosed / ROIC △46.2% / Operating profit margin △48.3% / Interest-Bearing Debt △15.9% / Net debt-to-equity ratio △12.5% / Equity ratio △2.9% / PBR △50.0% / Payout ratio +33.3%） |
| Reason for revision or withdrawal | The financial targets for operating profit, ROE, ROIC, and other metrics under the previous medium-term management plan were not achieved, due to factors including sluggishness in the domestic steel products business affected by blast furnace problems at the Muroran Complex. Under the next medium-term management plan, the Company will make a fresh effort to transform the quality of earnings and improve execution effectiveness by building on the foundation established under the previous plan. |
| Risks identified | The possibility that the impact of the blast furnace problems at the Muroran Complex will persist through the first half of fiscal 2026, Declining demand for the domestic steel products business and a flat market environment, The impact of the situation in the Middle East (not incorporated into this plan), Slower progress toward electric vehicles, The possibility that future business performance will differ from current forecasts |
| Publication date | 13 May 2026 |
Items this document does not state (4)
Cost of capitalNon-financial targetsSize of the Target MarketDate of board resolution
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 3-year period is positioned as a period for increasing the feasibility of achieving the Company's desired future state in 2030. The Company will rebuild the earnings power and cash-generation capacity of its core businesses, concentrate management resources on strategic businesses, improve capital efficiency, and strengthen human capital and organizational execution capabilities. This plan also takes into account the failure to achieve the financial targets under the previous medium-term management plan, due in part to blast furnace problems at the Muroran Complex and sluggishness in the domestic steel products business.
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