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The Japan Steel Works (5631) investor relations material

The Japan Steel Works Q2 2026 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2026 earnings summary10 Nov, 2025

Executive summary

  • Net sales for the six months ended September 30, 2025, rose 25.3% year-over-year to ¥135,662 million, with operating profit up 47.1% to ¥12,192 million and profit attributable to owners of parent up 67.9% to ¥10,092 million.

  • Orders for plastic production and processing machinery fell short due to delayed investment decisions from U.S. tariff policies, but thermal/nuclear power products and defense equipment exceeded forecasts, keeping overall progress on track.

  • Sales grew year-over-year, supported by a strong order backlog, and profits increased due to higher sales and price improvements.

  • Comprehensive income increased 88.3% year-over-year to ¥11,910 million for the period.

Financial highlights

  • 1H FY2025 net sales rose to ¥135.6B (up ¥27.4B YoY), operating profit reached ¥12.1B (up ¥3.9B YoY), and profit attributable to owners was ¥10.0B (up ¥4.0B YoY).

  • EBITDA margin improved to 12.0% from 11.0% YoY.

  • EPS increased to ¥137.11 from ¥81.65 YoY; interim dividend per share was ¥44, up ¥6 YoY.

  • Gross profit increased from ¥26,406 million to ¥31,897 million year-over-year, while operating profit rose from ¥8,289 million to ¥12,192 million.

  • Equity-to-asset ratio improved to 51.2% as of September 30, 2025, from 48.5% at March 31, 2025.

Outlook and guidance

  • FY2025 full-year forecasts for orders, sales, and profits remain unchanged from initial guidance: net sales ¥290.0B, operating profit ¥24.5B, EPS ¥251.34, and annual dividend ¥88.

  • Full-year forecast for fiscal year ending March 31, 2026: net sales of ¥290,000 million (up 16.7% year-over-year), operating profit of ¥24,500 million (up 7.3%), and profit attributable to owners of parent of ¥18,500 million (up 3.0%).

  • Operating profit is expected to increase by ¥1.7B YoY, driven by higher production, sales, and price improvements.

  • Annual dividend forecast is ¥88.00 per share.

SG&A efficiency drivers for operating profit growth?
Reason for significant long-term debt increase?
Why is the FY26 forecast growth so conservative?
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Frequently asked questions

The Japan Steel Works Ltd. is a Japanese company specializing in the production of steel and machinery for industrial applications. Its offerings include steel castings and forgings, plastic molding machines, and equipment for energy-related industries, including nuclear power. The company serves a diverse range of sectors, such as automotive, aerospace, construction, and energy, providing advanced materials and manufacturing solutions. The company is headquartered in Tokyo, Japan, and its shares are listed on the Tokyo Stock Exchange.

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