Nakayama Steel Works slashes earnings and dividend forecasts on demand, accident impact

Nakayama Steel Works has revised its consolidated earnings forecast for the fiscal year ending March 31, 2026. The company now expects net sales of JPY151,000 million, down from JPY157,500 million. Operating profit is also expected to fall sharply to JPY4,200 million from JPY7,300 million, while ordinary profit is revised to JPY4,000 million from JPY7,000 million. Net income attributable to owners of the parent is now forecast at JPY2,300 million, a considerable decrease from the previous JPY4,200 million, leading to an expected earnings per share of JPY42.42.

The company attributes these revisions to a projected decline in domestic steel demand, increased inflow of imported materials, and the impact of a power substation accident on its steelmaking operations. The accident, which occurred on September 26, 2025, led to a shutdown of the steelmaking plant.

Consequently, the year-end dividend forecast has also been adjusted. Nakayama Steel Works now expects a year-end dividend of JPY5.00 per share, reduced from the previously projected JPY16.00, resulting in a total annual dividend of JPY13.00 per share, down from JPY24.00. This adjustment aligns with the company's dividend policy, which prioritizes financial stability and future business development, while considering the revised earnings forecast.