Japan-based Nippon Steel Corporation has announced its financial and operational results for the financial year 2025-26 ended March 31.
In the given financial year, the company recorded a net profit of JPY 44.75 billion ($283.52 million), compared to a net profit of JPY 382.97 billion in the previous financial year, while its net sales amounted to JPY 10.06 trillion ($63.74 billion), rising by 15.7 percent compared to net sales of JPY 8.70 trillion in the previous financial year. In addition, Nippon Steel’s operating profit decreased by 55.7 percent year on year to JPY 242.90 billion ($1.54 billion).
Meanwhile, in the financial year 2025-26, the company produced 50.48 million mt of crude steel, up by 27.5 percent, while its steel product shipments amounted to 31.16 million mt, falling by 1.5 percent, both year on year.
Nippon Steel forecasts that it will produce approximately 57.50 million mt of crude steel in the financial year 2026-27 and expects its steel product shipments to be approximately 31.50 million mt in the given financial year.
According to the statement, global demand in the manufacturing and construction sectors remains weak both in Japan and overseas, with the exception of certain industries such as artificial intelligence, electric power, and defense. Under these conditions, the global steel business environment continues to face significant pressure. China’s economic slowdown has widened the supply-demand imbalance in the steel sector, leading to excess production capacity. As a result, exports of low-priced Chinese steel products have increased, negatively affecting global steel markets. Nippon Steel also warned that trade protection measures introduced in various countries could increase the risk of low-priced steel imports flowing into the Japanese market. It emphasized the growing importance of strengthening the examination and implementation of trade defense measures in Japan.
Commenting on geopolitical developments, the company stated that the impact of the Middle East situation now extends beyond energy supply disruptions traditionally associated with past oil crises. Due to globally integrated supply chains, the effects are spreading across international markets and industries. The Middle East has become an increasingly important export destination for Asian economies, including Japan, as the region’s economic scale has expanded significantly. As a result, the ongoing conflict is expected to affect demand across a wide range of industries globally. In addition, the impact of the Middle East crisis on its financial performance cannot currently be comprehensively or reasonably assessed.
However, regarding impacts that have already emerged and can be reasonably estimated, Nippon Steel expects a negative impact of approximately ¥50 billion in the first quarter due to rising raw material and fuel costs, as well as reduced direct steel exports to the Middle East. It added that since there is currently no clear outlook for a resolution to the conflict, and because steel demand and cost pressures are unlikely to normalize immediately even after the situation stabilizes, the impact on fiscal year 2026 earnings from the second quarter onward cannot yet be reasonably quantified and therefore has not been included in its forecasts.