Daido Steel boosts profit forecast and interim dividend on strong first half

Daido Steel Co. reported consolidated net sales of JPY284,499 million for the first half of the fiscal year ending March 2026, a slight increase of 0.4% year-on-year. Operating profit rose by 1.1% to JPY18,464 million, with profit attributable to owners of the parent increasing by 6.5% to JPY12,937 million. Results surpassed previous forecasts due to higher demand for open-die forgings and heavy rare earth-free magnets, a weaker yen, and cost reduction efforts.

In response to these favorable trends, Daido Steel revised its full-year consolidated financial outlook for fiscal year 2026. The company now forecasts full-year operating profit of JPY33,000 million and profit attributable to owners of the parent of JPY23,500 million.

Concurrently, Daido Steel revised its shareholder return policy to include a minimum DOE (Dividend on Equity) of 2.5%, in addition to a consolidated dividend payout ratio of 30% or more. This change resulted in an increased interim dividend of JPY22 per share, up JPY6 from the prior forecast of JPY16, and a revised full-year dividend forecast of JPY49 per share.