Yamato Kogyo Co (5444) Q4 2026 earnings summary

Executive summary

• Group-wide sales volume dropped 30.9% year-over-year to 3.76 million tons, mainly due to withdrawal from the Middle East business.

• Despite challenging global steel market conditions, ordinary profit rose 19.9% year-over-year to 65.2 billion yen, driven by strong U.S. performance and extraordinary gains.

• Profit attributable to owners of parent nearly doubled year-over-year to 62.3 billion yen, supported by gains on sale of investment securities and reversal of foreign currency translation adjustments.

• Middle East business exited with a share sale, resulting in a ¥5.8 billion loss and a ¥22.2 billion reversal of foreign currency translation adjustment.

• Japan and ASEAN segments faced declining sales and profits due to high costs and competition from low-priced Chinese steel.

Financial highlights

• Net sales decreased by ¥7,878 million year-over-year to ¥160,389 million.

• Operating profit margin fell 4.0pp year-over-year to 2.8%.

• ROE improved by 5.5pp year-over-year to 11.4%.

• Capital adequacy ratio increased to 85.5%.

• Cash flow from operations was 52.0 billion yen; free cash flow was 52.3 billion yen.

Outlook and guidance

• FY2027/3 net sales forecasted at 1,660 billion yen (+3.5% YoY), ordinary profit at 68.0 billion yen (+4.2% YoY), and profit attributable to owners of parent at 47.0 billion yen (-24.7% YoY).

• U.S. business expected to remain highly profitable; challenging conditions persist outside the U.S., with some recovery in Thailand and Indonesia.

• Steel (Thailand) segment profit expected to increase, while Steel (Japan) profit is forecast to decrease due to operational suspensions and high costs.

• Risks include Middle East tensions, oil prices, logistics disruptions, and continued Chinese steel exports.