Nippon Steel's investment rating has been raised to “Buy,” reflecting the growth expected in the United States following its 100% acquisition of U.S. Steel. The company also raised its full-year 2027 earnings forecasts at the same time as announcing its results.
Nippon Steel announced its results on the 4th. Business profit for April–June 2026 rose 58.1% year on year to ¥145.5 billion, driven largely by U.S. Steel's contribution, while net income was ¥75.2 billion. In response, the company raised its full-year business profit forecast from ¥530 billion to ¥630 billion and its net income forecast from ¥220 billion to ¥290 billion. U.S. Steel is expected to contribute ¥180 billion for the full year.
The report explains that Nippon Steel's investment rating was raised to “Buy” based on its low valuation, with a price-to-book ratio of 0.64x, and its high level of technical expertise. The acquisition of U.S. Steel is seen as having got the company's U.S. growth strategy off to a smooth start.