JFE Holdings (5411) Q4 2025 earnings summary

Executive summary

• FY2024 profit attributable to owners was ¥91.8bn, down 53.5% year-on-year, impacted by manufacturing issues, weak demand, and increased low-priced exports from China.

• FY2025 profit forecast is ¥75.0bn, down 18.4% year-on-year, with annual dividends expected at ¥80 per share.

• Revenue for FY2024 was ¥4,859.6bn, down 6.1% year-on-year.

• Structural reforms and a focus on high-value-added products partially offset negative impacts, but all major segments saw profit declines.

• Exceptional items, including land sales, contributed ¥29.7bn to profit before tax.

Financial highlights

• Business profit for FY2024 was ¥135.3bn, down 54.6% year-on-year but up ¥20.3bn from previous forecast.

• EBITDA for FY2024 was ¥392.9bn, with a Debt/EBITDA ratio of 4.5x, above the target of ~3x.

• Interest-bearing debt decreased by ¥63.8bn to ¥1,766.4bn.

• Basic EPS for FY2024 was ¥144, down from ¥323.33 year-on-year.

• Free cash inflow was ¥95.7bn, with operating cash flow at ¥378.9bn and investing outflow at ¥283.1bn.

Outlook and guidance

• FY2025 business profit forecast is ¥140.0bn, up 3.4% year-on-year; segment profit forecast is ¥110.0bn.

• Revenue expected at ¥4,750.0bn, down 2.3% from FY2024.

• Steel segment income is expected to rise to ¥40.0bn despite lower production, driven by high-value-added products and operational rationalization.

• Dividend for FY2025 expected at ¥80 per share, payout ratio around 30%.

• Crude steel production forecasted at approx. 21.00Mt, down 0.95Mt year-on-year.