Nippon Steel (5401) Q2 2027 earnings summary

Executive summary

• H1 FY2027 revenue was ¥5,844,153 million, up 26.1% YoY; business profit rose 35.1% to ¥307,413 million, and parent-attributable profit was ¥262,997 million versus a year-earlier loss.

• FY2027 underlying business profit is forecast at ¥770.0bn or more; overseas businesses, led by U.S. Steel, are expected to drive growth while domestic operations face cost pass-through delays and weather impacts.

• H2 underlying business profit forecast of ¥456.7bn implies an annualized run rate of ¥900.0bn or more, supporting the FY2030 target of ¥1.0tn or more.

Financial highlights

• H1 gross profit was ¥835,302 million versus ¥652,458 million; operating profit was ¥307,413 million versus an operating loss of ¥2,835 million.

• H1 profit before income taxes was ¥247,009 million versus a loss of ¥30,104 million; net profit was ¥279,129 million versus a loss of ¥98,910 million.

• FY2027 sales forecast is ¥11,700.0bn, up ¥500.0bn from the prior forecast; Business Profit forecast is ¥720.0bn, up ¥90.0bn.

• Parent-attributable profit forecast is ¥440.0bn, up ¥150.0bn from the prior forecast; includes a one-time ¥96.1bn tax-credit benefit.

• H1 FY2026 included a ¥230,369 million reorganization loss; no such line item appears in H1 FY2027 results.

Outlook and guidance

• FY2027 underlying business profit forecast: domestic ¥380.0bn and overseas ¥390.0bn; U.S. Steel, including NSSK, is expected to contribute ¥230.0bn or more.

• H2 underlying business profit forecast of ¥456.7bn, up ¥143.0bn from H1, reflects domestic production recovery, cost pass-through and overseas contributions.

• U.S. Steel FY2027 underlying business profit is forecast at ¥230.0bn or more, ¥50.0bn above the prior forecast; its FY2030 target is ¥300.0bn or more.

• FY2030 underlying business profit target is ¥1.0tn or more, including at least ¥500.0bn each from domestic and overseas businesses.

• FY2027 annual dividend of ¥24 per share planned; policy targets a ~30% payout ratio and sets a ¥24 minimum dividend.