tiprankstipranks
Advertisement
Advertisement

Nippon Steel Posts Solid Underlying Earnings but Profit Hit by Restructuring Charges

Story Highlights
  • Nippon Steel’s FY2026 results show strong revenue and business profit, but large restructuring losses, including overseas asset transfers, sharply reduced net profit despite resilient underlying earnings.
  • The company plans a ¥24 annual dividend post-stock split and is targeting at least ¥700 billion in underlying business profit in FY2026, underscoring a drive to restore profitability after a restructuring-heavy year.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Nippon Steel Posts Solid Underlying Earnings but Profit Hit by Restructuring Charges

Meet Samuel – Your Personal Investing Prophet

NIPPON STEEL ( (JP:5401) ) has shared an announcement.

Nippon Steel reported consolidated revenue of ¥10,063.2 billion for the fiscal year ended March 31, 2026, with business profit of ¥514.1 billion and profit attributable to owners of the parent of ¥17.1 billion, as large reorganization losses weighed on the bottom line. Underlying business profit, which strips out inventory valuation and other one-off items such as losses on the transfer of equity interests in AM/NS Calvert and Usiminas, remained solid, supported by cost reductions and contributions from non-steel segments despite weaker spreads and overseas steel performance.

The board will propose a year-end dividend of ¥12 per share, equivalent to an annual ¥24 per share after the October 2025 five-for-one stock split, aligning with a cumulative payout target of about 30% over FY2021–FY2025 while excluding temporary merger-related losses in the U.S. business. Looking ahead to FY2026, before factoring in geopolitical disruptions, the company is targeting underlying business profit of at least ¥700 billion, signaling a focus on earnings recovery and improved profitability following a year dominated by restructuring charges and portfolio realignment.

The most recent analyst rating on (JP:5401) stock is a Sell with a Yen470.00 price target. To see the full list of analyst forecasts on NIPPON STEEL stock, see the JP:5401 Stock Forecast page.

More about NIPPON STEEL

Nippon Steel Corporation is a leading Japanese steelmaker engaged in steelmaking and steel fabrication, as well as engineering and construction, chemicals and materials, and system solutions. The company serves domestic and global steel demand, with operations spanning crude steel production, steel materials shipments, and diversified non-steel segments to stabilize earnings across market cycles.

Average Trading Volume: 31,239,646

Technical Sentiment Signal: Hold

Current Market Cap: Yen2989.5B

See more insights into 5401 stock on TipRanks’ Stock Analysis page.

Disclaimer & DisclosureReport an Issue

Looking for investment ideas? Subscribe to our Smart Investor newsletter for weekly expert stock picks!
Get real-time notifications on news & analysis, curated for your stock watchlist. Download the TipRanks app today! Get the App
1