Nippon Steel raises FY26 profit forecast by 52% on robust US Steel earnings

TOKYO, Nov 5 : Japan's biggest steelmaker Nippon Steel on Thursday raised its net profit forecast for fiscal 2026 by 52 per cent to 440 billion yen ($2.8 billion), citing stronger-than-expected earnings from its US Steel business.

• The forecast, for the year ending March 2027, compares with the company's August estimate of 290 billion yen and a net profit of 17 billion yen in fiscal 2025

• Nippon Steel expects US Steel, including its Slovak subsidiary NSSK, to contribute 230 billion yen to full-year underlying business profit, up 50 billion yen from its previous forecast, helped by higher US steel prices

• The company also expects stronger raw material prices to boost earnings in its raw-materials business. A one-off gain of 96 billion yen from an Arkansas state tax credit related to capital expenditure also contributed to the upgrade

• "The main driver behind the upward revision is US Steel," Chief Financial Officer Takahiko Iwai told a press conference, adding that the huge investment to acquire U.S. Steel had proved to be the right decision

• Iwai said half of US Steel's year-on-year earnings improvement was due to market conditions, while the other half came from efforts to improve earnings, such as raising operating rates

• Iwai declined to comment on the impact of the US midterm election on its US operations. He said strong steel prices were not only driven by tariffs but also by the strength of the US economy

• For the April-September first-half, Nippon Steel booked a net profit of 263 billion yen, against a net loss of 113 billion yen a year earlier, despite the impact of the Middle East conflict, typhoons and heavy rains, mainly in Japan

($1 = 157.8400 yen)