The Japan Steel Works (5631) Q4 2025 earnings summary

Executive summary

• Net sales rose 10.6% year-over-year to ¥274.8 billion, with operating profit up 10.9% to ¥25.3 billion and profit attributable to owners of parent at ¥19.2 billion, driven by strong performance in steel forgings, plates, and industrial machinery.

• Comprehensive income surged 21.4% year-over-year to ¥26,053 million.

• Orders received remained stable year-over-year, supported by a robust order backlog and price improvements.

• FY2026 forecasts anticipate growth in orders, sales, and profits, supported by demand in both main business segments.

• Progress on the medium-term management plan JGP2028 is on track, with no major revisions to core strategies despite changes in the market environment.

Financial highlights

• FY2025 net sales rose to ¥274.8 billion, up ¥26.3 billion year-over-year.

• Operating profit increased to ¥25.3 billion, up ¥2.5 billion year-over-year.

• Profit attributable to owners of parent reached ¥19.2 billion, up ¥1.3 billion year-over-year.

• EBITDA improved to ¥34.3 billion, with a margin of 12.5%.

• Gross profit improved to ¥64,259 million from ¥60,993 million year-over-year.

• Ordinary profit reached ¥26,051 million, up 10.9% year-over-year.

• Basic earnings per share increased to ¥261.38 from ¥244.03 year-over-year.

• Net assets rose to ¥213,831 million, and total assets to ¥429,983 million as of March 31, 2026.

• Cash and cash equivalents at year-end were ¥77,387 million, up from ¥75,150 million.

• Dividend per share for FY2025 was ¥92, with a payout ratio of 35.2%.

Outlook and guidance

• FY2026 forecasts: orders received ¥340.0 billion, net sales ¥310.0 billion, operating profit ¥27.0 billion.

• For the fiscal year ending March 31, 2027, net sales are forecast to rise 12.8% to ¥310,000 million.

• Operating profit is projected at ¥27,000 million (up 6.7%), with profit attributable to owners of parent at ¥19,000 million (down 1.2%).

• Both Industrial Machinery Products and Material and Engineering segments are expected to see year-over-year growth in orders, sales, and profits.

• Dividend per share for FY2026 is forecast at ¥92, maintaining a payout ratio above 35%.

• Basic earnings per share forecast at ¥258.11.