Nippon Steel (5401) Q1 2027 earnings summary

Executive summary

• Q1 FY2026 earnings were impacted by the Middle East situation and higher raw material costs, resulting in underlying business profit of ¥108.4bn and profit attributable to owners of the parent of ¥75.2bn.

• Revenue rose 40.4% year-over-year to ¥2,821,196 million for the quarter ended June 30, 2026, with business profit up 58.1% to ¥145,511 million and net profit attributable to owners at ¥75,299 million, reversing a loss in the prior year.

• Despite external headwinds, full-year underlying business profit is projected to exceed ¥700bn, with U.S. Steel as the primary earnings driver.

• Strategic investments in North America and Europe are expected to support growth and reduce exposure to China-related risks.

• Total comprehensive income reached ¥179,878 million, a significant turnaround from a loss of ¥281,044 million in the same quarter last year.

Financial highlights

• FY2026 sales forecast at ¥11,200bn, up ¥200bn from previous guidance.

• Underlying business profit for FY2026 projected at ¥700bn or more, up ¥200bn from prior forecast.

• Profit attributable to owners of the parent forecast at ¥290bn, up ¥70bn from previous forecast, aided by inventory valuation gains and yen depreciation.

• EPS forecast at 55, up 13 from previous guidance.

• Gross profit increased to ¥388,904 million from ¥298,723 million year-over-year.

Outlook and guidance

• Full-year revenue forecast for fiscal year ending March 31, 2027, is ¥11,200,000 million, up 11.3% year-over-year.

• Business profit is projected at ¥630,000 million, up 22.5%, and profit attributable to owners at ¥290,000 million.

• H2 FY2026 underlying business profit annualized at ¥900bn or more, setting a foundation for ¥1 trillion scale in future years.

• U.S. Steel expected to deliver underlying business profit of ¥180bn or more, up ¥80bn from previous forecast.

• Basic earnings per share forecasted at ¥55.00 for the full year.