Japan-based Nippon Steel Corporation has announced its financial and operational results for the first quarter ended June 30 of the financial year 2026-27.
In the given quarter, the company recorded a net profit of JPY 84.29 billion ($0.53 billion), compared to a net loss of JPY 190.72 billion in the same period of the previous year, while its net sales amounted to JPY 2.82 trillion ($17.87 billion), rising by 40.4 percent from net sales of JPY 2.01 trillion in the first quarter of the previous financial year. In addition, Nippon Steel reported an operating profit of JPY 145.51 billion ($922.30 million) for the first quarter, compared to an operating loss of JPY 139.56 billion recorded in the same quarter of the financial year 2025-26.
Meanwhile, in the first three months of the given financial year, the company produced 14.26 million mt of crude steel, up by 50.7 percent, while its steel product shipments amounted to 7.53 million mt, decreasing by 1.4 percent, both on year-on-year basis. It expects its crude steel production to be approximately 28.50 million mt and 29.50 million mt, respectively, in the first half and second half of the current financial year.
Nippon Steel expects sales revenues of JPY 5.6 trillion for the first half and JPY 11.2 trillion for the full financial year. In addition, the company forecasts business profit of JPY 260 billion for the first half and JPY 630 billion for the full financial year, while profit attributable to owners of the parent is expected to reach JPY 120 billion and JPY 290 billion, respectively.
The company stated that, while demand from the artificial intelligence and power sectors remains strong, underlying demand from the manufacturing and construction industries in Japan and overseas continues to be weak. Political and economic uncertainty remains elevated, with concerns that the situation in the Middle East could further slow global economic activity.
According to Nippon Steel, the global steel market is expected to remain under pressure from the continued oversupply of low-priced steel products resulting from China's excess production capacity, as well as expanding steelmaking capacity in emerging economies. These factors are expected to sustain the imbalance between supply and demand, while trade measures and the formation of economic blocs are likely to accelerate. Depending on their impact, market disparities among regions are expected to widen further, with market conditions improving moderately in regions including North America and Europe, while recovery in other markets remains limited. Against this backdrop, the company stated that it has concentrated investments in regions such as North America and Europe, which are considered less exposed to developments in China and are expected to offer stronger growth prospects.
For fiscal 2026, Nippon Steel said that changes in the external environment, including the impact of the Middle East situation, have begun to affect its business, particularly in Japan, through higher raw material and fuel costs and lower steel exports to the Middle East. Nevertheless, supported primarily by US Steel, the group's main earnings contributor, the company aims to achieve underlying business profit of at least JPY 700 billion, consisting of JPY 250 billion in the first half and JPY 450 billion in the second half of the fiscal year.
Looking ahead, Nippon Steel stated that it will continue strengthening its domestic operations while expanding its overseas business by enhancing its local production-for-local consumption model in the US, Europe, India, and ASEAN, particularly Thailand. The company said it also intends to improve the profitability of its existing operations, including US Steel, enabling it to better respond to trade measures and the formation of regional economic blocs while further enhancing its competitiveness and profitability in the global steel market.
