Japan-based Nippon Steel Corporation has announced its financial and operational results for the first six months ended September 30 of the financial year 2026-27.
In the given period, the company recorded a net profit of JPY 279.13 billion ($1.76 billion), compared to a net loss of JPY 98.91 billion in the same period of the previous year, while its net sales amounted to JPY 5.84 trillion ($36.89 billion), rising by 26.1 percent from JPY 4.64 trillion in the first half of the previous financial year. In addition, Nippon Steel reported an operating profit of JPY 307.41 billion ($1.94 billion) for the first six months, compared to an operating loss of JPY 2.84 billion recorded in the same period of the financial year 2025-26.
Meanwhile, in the first six months of the given financial year, the company produced 28.55 million mt of crude steel, up by 24.5 percent, while its steel product shipments amounted to 15.25 million mt, decreasing by 1.4 percent, both on a year-on-year basis. It expects its crude steel production to be approximately 29.50 million mt in the second half of the current financial year, bringing its full-year output to approximately 58 million mt. Steel product shipments are forecast to reach approximately 31.50 million mt for the full financial year. It should be noted that US Steel has been included in Nippon Steel's consolidated crude steel production figures since the second quarter of the financial year 2025-26.
Nippon Steel has revised its consolidated financial forecasts for the full financial year ending March 31, 2027. The company now expects sales revenues of JPY 11.7 trillion, up from its previous forecast of JPY 11.2 trillion. In addition, it forecasts business profit of JPY 720 billion, compared to its earlier estimate of JPY 630 billion, while profit attributable to owners of the parent is expected to reach JPY 440 billion, up from JPY 290 billion previously. The company has also raised its underlying business profit forecast to at least JPY 770 billion, including JPY 313.3 billion recorded in the first half and JPY 456.7 billion expected in the second half.
The company emphasized that demand from the artificial intelligence and electric power sectors remains strong globally, while steel demand in Japan continues to be weak, despite emerging signs of recovery in some sectors, including construction. Political and economic uncertainty remains elevated, with the prolonged situation in the Middle East beginning to have tangible impacts on business conditions. According to Nippon Steel, the global steel market continues to face structural oversupply driven by China's excess production capacity, declining domestic demand in China and expanding steelmaking capacity in emerging economies. The company noted that trade measures and the formation of economic blocs are progressing across various countries and regions, resulting in increasingly polarized market conditions depending on trade policies and demand conditions.
For the fiscal year 2026-27, Nippon Steel said that its domestic operations continue to face challenging conditions due to delays in passing higher raw material and fuel costs on to customers, as well as production and shipment disruptions caused by typhoons and heavy rainfall. In the second half, the company plans to implement further sales price increases and recover production and shipment volumes. Meanwhile, US Steel remains a major earnings driver for the group, supported by rising steel market prices and operating synergies. Nippon Steel expects US Steel, including Nippon Steel Slovakia, to generate underlying business profit of at least JPY 230 billion in the fiscal year 2026-27, compared to its previous forecast of JPY 180 billion.
Regarding its investments, Nippon Steel highlighted that its new hot strip mill at Nagoya Works commenced commercial operations in August 2026. In the US, the company has decided to invest nearly $3.0 billion in a new hot strip mill at US Steel's Mon Valley Works, bringing its cumulative strategic investment plans to approximately $6.7 billion. In Europe, Nippon Steel Slovakia has decided to invest nearly €900 million in a new electric arc furnace and air separation unit at the Košice Steelworks, supported by a €350 million grant agreement with the Slovak government. In India, AM/NS India plans to start operations at its cold-rolling and aluminum-plating facilities at Hazira Works in the second half of 2026 and commence construction of the first phase of an integrated steelworks at Rajayyapeta, with an annual crude steel production capacity of seven million mt.
Looking ahead, Nippon Steel stated that it will continue strengthening its domestic operations while expanding its overseas business through its local production-for-local consumption model in the US, Europe, India and Thailand. The company also aims to improve the profitability of its existing operations, including US Steel, while strengthening its ability to respond to trade measures and regional economic blocs. It is targeting underlying business profit of at least JPY 1 trillion from fiscal 2027 onward, supported by further improvements in its domestic and overseas operations.
