Nippon Steel (5401) Q3 2025 earnings summary

Executive summary

• Q3 FY2024 underlying business profit was ¥236.5bn and consolidated business profit was ¥190.3bn, with full-year forecasts maintained despite a harsh global steel environment.

• Net profit for FY2024 is forecast at ¥310.0bn, with a dividend of ¥160 per share, unchanged from previous guidance.

• Revenue for Q3 FY2024 was ¥6,552.4bn, down 1.3% year-over-year; business profit fell 18.2% to ¥566.1bn; profit attributable to owners dropped 17.9% to ¥362.0bn.

• Strategic focus includes deepening overseas business, raw material procurement, and progressing the U.S. Steel (USS) transaction.

• Sanyo Special Steel to become a wholly owned subsidiary; significant progress in decarbonization technology.

Financial highlights

• FY2024 revenue forecast is ¥8,600.0bn, down ¥268.0bn year-over-year.

• Underlying business profit forecast at ¥780.0bn, consolidated business profit at ¥670.0bn, both lower year-over-year.

• Net profit forecast at ¥310.0bn, EPS at ¥311, and ROE at 8.9%.

• Interest-bearing debt stood at ¥2,790.6bn; D/E ratio improved to 0.41 from 0.52 year-over-year.

• Expected approx. ¥230.0bn loss on reorganization from USS transaction and AM/NS Calvert equity transfer.

Outlook and guidance

• FY2024 full-year forecasts for business profit, net profit, and dividend are maintained despite a challenging market.

• Plan to announce FY2025 earnings forecast at the time of FY2024 results.

• No recovery expected in domestic or overseas steel demand or margins in the near term.