Nippon Steel subsidiary Osaka Steel forecasts lower earnings amid slowing construction

Nippon Steel Corporation announced that its subsidiary, Osaka Steel Co., Ltd., forecasts lower non-consolidated financial results for the first half of fiscal year 2025 and for the full fiscal year compared to prior periods. For the first half of fiscal 2025 (April 1, 2025 – September 30, 2025), Osaka Steel’s net sales are projected to decrease by 17.0% to 39,516 million yen, with operating income falling by 89.1% to 196 million yen compared to the first half of fiscal 2024. Net income is expected to decline by 55.1% to 531 million yen.

Full-year non-consolidated financial result forecasts for fiscal 2025 (April 1, 2025 – March 31, 2026) also show a decrease from fiscal 2024 actuals. Net sales are forecast to drop by 13.6% to 79,300 million yen, and operating profit is expected to decrease by 45.1% to 2,550 million yen. Net income is projected to be 2,220 million yen, a 23.6% decrease from the previous fiscal year.

The declines are attributed to soaring material and equipment prices, labor shortages, and a slower-than-expected recovery in the construction industry, which is a primary source of demand for Osaka Steel's products. These factors have led to lower shipment volumes and a deterioration in product market conditions, with no significant recovery in construction demand anticipated for the full year. Nippon Steel stated that the impact of this revision on its consolidated financial results for the fiscal year ending March 31, 2026, is immaterial.