Nakayama Steel Works delays JV, lowers forecast amid market challenges

Nakayama Steel Works announced on November 6, 2025, a delay in its planned joint venture agreement with Nippon Steel Corporation. The signing, originally scheduled for September 2025, is now anticipated for late November 2025 due to ongoing final confirmation of contract details. Despite this, the establishment date of the joint venture remains unchanged for March 2026.

Concurrently, the company revised its consolidated financial forecasts for the fiscal year ending March 31, 2026, due to recent business trends. Net sales are now projected at 151,000m yen, a decrease of 183m yen year-on-year, with ordinary profit at 4,000m yen and profit attributable to owners of parent at 2,300m yen. This represents a reduction from the previously announced forecast on May 9, 2025, and results in a revised annual dividend of 13 yen per share, down from 24 yen.

The financial adjustments reflect a challenging environment, including decreased sales volume and lower sales prices, leading to a 12,994m yen reduction in steel materials net sales for the first half of 2025 compared to 2024. Additionally, an accident at a substation in late September caused a suspension of electric furnace operations, further impacting profits by an estimated 1,500m yen, with restoration expected in late December.