Kobe Steel Reports Mixed Financial Results for 2025

Kobe Steel ( (KBSTF) ) has released its Q2 earnings. Here is a breakdown of the information Kobe Steel presented to its investors.

Kobe Steel, Ltd., a prominent player in the steel and aluminum industry, is listed on the Tokyo and Nagoya Stock Exchanges and is known for its diversified operations in advanced materials, welding, machinery, and electric power. In its latest earnings report for the six months ended September 30, 2025, Kobe Steel reported a decline in net sales by 5.4% to 1,181,447 million yen compared to the same period last year. Despite the drop in sales, the company saw an 11% increase in profit attributable to owners of the parent, reaching 62,830 million yen.

The company’s operating profit decreased by 19.5% to 62,565 million yen, while ordinary profit fell by 18.7% to 57,663 million yen. The comprehensive income also saw a significant decline of 40.9% year-on-year. However, the basic earnings per share improved from 143.35 yen to 159.49 yen, indicating a positive outcome for shareholders. The equity-to-asset ratio improved slightly to 41.6%, reflecting a stable financial position.

Strategically, Kobe Steel’s segments showed mixed results, with the Machinery segment experiencing growth in ordinary profit from 12,303 million yen to 18,637 million yen, while the Steel & Aluminum segment saw a decline. The company also recorded extraordinary income from the sale of investment securities and non-current assets, contributing to the overall profit before income taxes.

Looking ahead, Kobe Steel remains cautiously optimistic, adjusting its full-year forecasts to reflect the current market conditions. The management continues to focus on enhancing operational efficiencies and exploring growth opportunities across its diverse business segments.