Nippon Steel has raised its full-year earnings forecast for the fiscal year ending March 2027. The U.S. steel business is expected to make a significant contribution, with business profit projected at approximately ¥230 billion, above the previous forecast.
Nippon Steel has raised its full-year earnings forecast for the fiscal year ending March 2027. It says profits from overseas operations, particularly U.S. steel, will offset sluggish conditions in the Japanese market.
Net income attributable to owners of the parent has been raised from the previous forecast of ¥290 billion to ¥440 billion, business profit from ¥630 billion to ¥720 billion, and revenue from ¥11.2 trillion to ¥11.7 trillion. First-half results were net income of ¥262.9 billion, business profit of ¥307.4 billion, and revenue of ¥5.84 trillion.
The main factor behind the upward revision is the contribution from U.S. steel. The company expects its U.S. steel business to generate at least ¥230 billion in underlying business profit in the current fiscal year. Higher steel prices and the realization of operating synergies are cited as the drivers.
Tight supply and demand in the U.S. market will be key to improving profits. While tariffs are pushing up import costs, large-scale AI data center construction is stimulating steel demand. U.S. hot-rolled steel prices in late October were approximately 50% higher year on year and had already exceeded the previous assumptions.
It has also been noted that the expansion of overseas profits has not fully offset pressure on Nippon Steel's domestic operations. Weak demand and rising costs are weighing on Japan, and profits from domestic operations are expected to remain low. The dividend will remain unchanged at ¥24 per share, including an interim dividend of ¥12.