Nippon Steel still sees FY net loss 70.00B yen
TL;DR
Nippon Steel maintains its full-year net loss forecast of 70 billion yen for FY ending March 2026, driven by integration costs from the U.S. Steel acquisition and restructuring in Brazil. The company reported a net loss of 45 billion yen for the nine months to December 2025, contrasting with a profit in the prior year.
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Nippon Steel still sees FY net loss 70.00B yen
Nippon Steel Maintains FY Net Loss Forecast of 70 Billion Yen Amid Integration Challenges
Tokyo-based Nippon Steel (5401.T) has reaffirmed its full-year net loss projection of 70 billion yen ($446.12 million) for the fiscal year ending March 2026, citing ongoing integration costs related to its $15 billion acquisition of U.S. Steel and operational adjustments following its exit from steel assets in Brazil according to Reuters. The company initially forecast a narrower loss of 60 billion yen but revised the estimate upward to reflect mounting pressures from these strategic initiatives.
For the nine-month period ending December 2025, Nippon Steel reported a net loss of 45 billion yen, a stark contrast to the 362.1 billion yen profit recorded during the same period in the prior fiscal year according to Reuters. The decline underscores the financial strain of integrating U.S. Steel, which closed in June 2025, as well as restructuring efforts in international markets. The company has not provided additional details on specific cost drivers but has emphasized that the Brazil asset divestment remains a key factor.
The revised forecast aligns with broader challenges in the global steel industry, including fluctuating demand and input costs. Nippon Steel’s outlook also reflects currency exchange impacts, with the recent exchange rate of $1 = 156.91 yen according to Reuters.
Despite the losses, the company has not adjusted its long-term strategic goals, indicating confidence in realizing synergies from the U.S. Steel acquisition. Analysts note that the integration timeline and market conditions will be critical in determining whether the firm meets its forecast or requires further revisions in upcoming reports.
Investors are advised to monitor Nippon Steel’s quarterly updates for insights into cost management progress and operational efficiency gains as it navigates these transitional challenges.
Reporting by Katya Golubkova for Reuters (Feb. 5, 2026).
