Nippon Steel Raises Forecast on U.S. Steel Growth

Nippon Steel reported a business profit of 145.5 billion yen for the April-June 2026 quarter, returning to profitability after a loss in the same period the previous year. The company increased its full-year earnings guidance by 100 billion yen, citing inventory valuation gains and strong overseas performance.

U.S. Steel served as a primary driver of this growth, providing its first profit contribution to the group with 32.2 billion yen in quarterly earnings. Based on this performance, Nippon Steel raised its expected full-year contribution from U.S. Steel from 100 billion yen to over 180 billion yen.

While overseas assets performed well, the company reduced its domestic underlying profit guidance from 470 billion yen to 380 billion yen. This decline resulted from weakening domestic steel spreads, rising fuel and raw material costs, and disruptions linked to the Middle East. For the fiscal year ending March 31, 2027, Nippon Steel expects total revenue of 11.2 trillion yen.