The Japan Steel Works (5631) Q2 2026 earnings summary

Executive summary

• Net sales for the six months ended September 30, 2025, rose 25.3% year-over-year to ¥135,662 million, with operating profit up 47.1% to ¥12,192 million and profit attributable to owners of parent up 67.9% to ¥10,092 million.

• Orders for plastic production and processing machinery fell short due to delayed investment decisions from U.S. tariff policies, but thermal/nuclear power products and defense equipment exceeded forecasts, keeping overall progress on track.

• Sales grew year-over-year, supported by a strong order backlog, and profits increased due to higher sales and price improvements.

• Comprehensive income increased 88.3% year-over-year to ¥11,910 million for the period.

Financial highlights

• 1H FY2025 net sales rose to ¥135.6B (up ¥27.4B YoY), operating profit reached ¥12.1B (up ¥3.9B YoY), and profit attributable to owners was ¥10.0B (up ¥4.0B YoY).

• EBITDA margin improved to 12.0% from 11.0% YoY.

• EPS increased to ¥137.11 from ¥81.65 YoY; interim dividend per share was ¥44, up ¥6 YoY.

• Gross profit increased from ¥26,406 million to ¥31,897 million year-over-year, while operating profit rose from ¥8,289 million to ¥12,192 million.

• Equity-to-asset ratio improved to 51.2% as of September 30, 2025, from 48.5% at March 31, 2025.

Outlook and guidance

• FY2025 full-year forecasts for orders, sales, and profits remain unchanged from initial guidance: net sales ¥290.0B, operating profit ¥24.5B, EPS ¥251.34, and annual dividend ¥88.

• Full-year forecast for fiscal year ending March 31, 2026: net sales of ¥290,000 million (up 16.7% year-over-year), operating profit of ¥24,500 million (up 7.3%), and profit attributable to owners of parent of ¥18,500 million (up 3.0%).

• Operating profit is expected to increase by ¥1.7B YoY, driven by higher production, sales, and price improvements.

• Annual dividend forecast is ¥88.00 per share.