Japanese steelmaker Tokyo Steel has announced its non-consolidated results for the six months ended September 30, 2026, reporting a 47.7 percent year-on-year decline in net profit to JPY 2.39 billion ($15.22 million), despite a 12.3 percent increase in sales revenues to JPY 150.42 billion ($958.35 million).
Operating results turn negative
The company recorded an operating loss of JPY 3.54 billion ($22.57 million), compared with an operating profit of JPY 6.05 billion ($38.51 million) a year earlier. However, gains from sales of investment securities and non-current assets supported net earnings.
Tokyo Steel stated that its July-September operating performance exceeded expectations as product selling prices increased as anticipated, while scrap purchase costs were lower than projected.
Steel output and exports increase
During the six-month period, steelmaking output rose by 7.1 percent year on year to 1.61 million mt, while rolled steel production increased by 8.9 percent to 1.49 million mt. Steel product sales climbed by 7.9 percent to 1.47 million mt, including exports of 266,000 mt, up by 33.7 percent.
Full-year operating profit expected
For the fiscal year ending March 31, 2027, Tokyo Steel maintained its latest forecasts of sales revenues of JPY 326 billion ($2.08 billion), operating profit of JPY 1 billion ($6.37 million) and net profit of JPY 7 billion ($44.60 million). The company expects price revisions to support a return to operating profitability as they progressively feed through to shipments, alongside further cost reductions.
