JFE Systems revises down full-year forecast amid steel sector weakness

JFE Systems announced a downward revision to its full-year consolidated earnings forecast for the fiscal year ending March 31, 2026. The company now anticipates net sales of JPY 58,436 million, operating profit of JPY 5,582 million, ordinary profit of JPY 5,700 million, and profit attributable to owners of the parent of JPY 3,900 million. This represents a decrease in net sales of JPY 184 million, operating profit of JPY 718 million, ordinary profit of JPY 700 million, and profit attributable to owners of the parent of JPY 360 million compared to the previous forecast.

The revision is primarily attributed to a reduction in workload from the Steelworks System Refresh Project and delays in securing new orders within the steel business. While other key growth businesses, including digital manufacturing, ERP solutions, and IT infrastructure, continue to perform steadily, these gains were insufficient to offset the steel sector's impact. The company also noted increased R&D expenses and personnel costs as contributing factors to the reduced operating profit.

Despite the revised earnings forecast, JFE Systems intends to maintain its annual dividend forecast at JPY 68 per share for the fiscal year ending March 2026, with an interim dividend of JPY 28 and a year-end dividend of JPY 40. The company remains committed to its mid-term management plan, which targets a 50% dividend payout ratio, and continues to prioritize active shareholder returns.