JFE Systems (4832) Q2 2026 earnings summary

Executive summary

• H1 FY2026 net sales fell 2.1% YoY and operating income declined 19.9%, as lower JFE Group workload outweighed growth in other businesses.

• Key Growth Businesses performed steadily, but reduced Steelworks System Refresh Project workload and delayed orders prompted a downward revision to FY2026 guidance.

Financial highlights

• H1 net sales were ¥29,258 million, gross profit ¥6,674 million, and operating income ¥2,667 million; YoY changes were -2.1%, -6.7%, and -19.9%, respectively.

• Ordinary income was ¥2,707 million, down 19.3% YoY; profit attributable to owners of the parent was ¥1,765 million, down 22.9%.

• SG&A rose 4.8% YoY to ¥4,008 million, mainly from R&D, recruitment, and employee-related spending.

• Orders received were ¥28,295 million, down 16.0% YoY; order backlog was ¥25,030 million, down 6.0%.

Outlook and guidance

• Revised FY2026 forecast: net sales ¥58,436 million (-8.7% YoY), operating income ¥5,582 million (-26.4%), ordinary income ¥5,700 million (-25.7%), and parent profit ¥3,900 million (-28.3%).

• Revised sales and operating income forecasts were ¥184 million and ¥718 million below the April outlook, respectively.

• Sales excluding JFE Group business are expected to grow, led by Key Growth Businesses; JFE Group sales face a larger decline from reduced project workload and delayed orders.

• FY2026 SG&A is forecast at ¥8,475 million, up 13.1% YoY, reflecting recruitment, training, and R&D investment.