JFE Systems (4832) Q4 2026 earnings summary

Executive summary

• FY2026 net sales fell 10.3% to ¥57,411 million and operating income fell 16.4% to ¥6,346 million as JFE Group workload declined after the Steelworks System Refresh; external-customer growth businesses advanced.

• Expense reviews and productivity improvements restored profit to the level before the Q2 downward revision; FY2027 guidance calls for revenue and ordinary income growth.

Financial highlights

• Gross profit was ¥14,424 million, down 4.4%; SG&A rose 7.8% to ¥8,078 million, reflecting sales activity, hiring, training, reskilling and internal IT investment.

• Ordinary income declined 15.8% to ¥6,454 million; net income attributable to owners of parent fell 21.6% to ¥4,266 million, mainly due to valuation losses on investment securities.

• Orders received decreased 18.6% to ¥54,589 million; backlog fell 10.9% to ¥23,064 million as of March 31, 2026.

• Comprehensive income was ¥4,620 million, down from ¥5,862 million.

Outlook and guidance

• FY2027 forecasts: net sales ¥60,000 million (+4.5%), operating income ¥6,600 million (+4.0%), ordinary income ¥6,800 million (+5.4%) and parent-attributable profit ¥4,380 million (+2.7%).

• FY2027 EPS is forecast at ¥139.45 on a post-split basis; SG&A is forecast to rise 10.9% to ¥8,960 million for sales initiatives, hiring, training and internal IT systems.

• External-customer businesses, mainly key growth businesses, are expected to drive growth despite lower JFE Group sales after the refresh project completion.

• FY2027 annual dividend is forecast at ¥70 per share, with a 50% payout ratio target under the mid-term plan.