Nippon Steel (5401) Q1 2026 earnings summary

Executive summary

• Underlying business profit for FY2025 is forecast at ¥650.0 billion, up ¥50.0 billion from the previous forecast, excluding U.S. Steel effects; with U.S. Steel, total underlying BP is expected at ¥730.0 billion, up ¥130.0 billion.

• U.S. Steel's 9-month profit (Jul 2025–Mar 2026) is consolidated, contributing ¥80.0 billion to underlying BP; annualized profit expected to reach ¥150.0 billion from next year, targeting ¥250.0 billion by FY2028.

• Revenue for the quarter ended June 30, 2025, was ¥2,008.7 billion, down 8.3% year-over-year; business profit fell 61.2% to ¥92.0 billion.

• Net loss attributable to owners was ¥195.8 billion, compared to a profit of ¥157.6 billion in the prior year period.

• A 5-for-1 stock split is planned to expand the investor base, effective October 1, 2025.

Financial highlights

• FY2025 revenue (excluding U.S. Steel) is forecast at ¥8,695.5 billion; with U.S. Steel, revenue is expected to exceed ¥10,000.0 billion.

• Consolidated business profit (BP) for FY2025 is projected at ¥480.0 billion, with net profit at ¥220.0 billion, excluding one-off effects.

• EPS for FY2025 is forecast at ¥210 (pre-split), with ROE at 6.9%.

• One-off losses of ¥230.0 billion are expected from the transfer of equity interest in AM/NS Calvert.

• Total assets increased to ¥13,824.5 billion from ¥10,942.5 billion at March 31, 2025.

Outlook and guidance

• Despite a harsh environment, profit improvement measures and cost reductions are expected to secure underlying BP of ¥650.0 billion (excluding U.S. Steel).

• U.S. Steel's annualized business profit is expected to reach ¥150.0 billion from FY2026, with a target of ¥250.0 billion by FY2028 through synergies and CAPEX effects.

• Fiscal year 2026 revenue forecast at ¥10,000 billion, up 2.7% year-over-year.

• Business profit expected to decline 29.7% to ¥480 billion; profit attributable to owners forecast at ¥(40) billion.

• Dividend policy remains at approximately 30% payout ratio, with a year-end dividend of ¥12 per share post-split.