Nippon Steel lifts profit forecast 32%

Nippon Steel raised its full-year net profit forecast on August 4, saying earnings from U.S. Steel and firmer market conditions in the United States had improved its outlook. The Japanese steelmaker said it now expects net profit of 290 billion yen for the year ending March 31, 2027, up 32% from its previous forecast. The revision came with first-quarter results that showed a return to profit from a year-earlier loss. The company tied the change to stronger contributions from its U.S. business after bringing U.S. Steel into the group. ### How big was the revision? The new forecast of 290 billion yen compares with Nippon Steel's earlier estimate of 220 billion yen, a 70 billion yen increase. Reuters reported the company described the upgrade as driven by stronger earnings at U.S. Steel amid a firmer U.S. steel market. Nippon Steel's investor presentation on August 4 also said U.S. Steel had emerged as the group's primary earnings driver. (money.usnews.com) A separate company filing showed Nippon Steel posted first-quarter net profit of about 75.3 billion yen for April through June, versus a net loss of about 195.8 billion yen a year earlier. Revenue for the quarter rose to roughly 2.82 trillion yen, according to market reports based on the filing. (money.usnews.com) ### What did U.S. Steel contribute to the new outlook? Nippon Steel's August 4 presentation said it raised its outlook for U.S. Steel underlying business profit to 180 billion yen or more, from 100 billion yen or more previously. The same presentation said operating synergies were expected to rise to $0.3 billion per year in fiscal 2026. (newsbreak.com) The company said in the presentation that it expects second-half fiscal 2026 underlying business profit to run at an annualized pace of 900 billion yen or more. It said that would support growth toward a 1 trillion yen scale, with overseas business earnings expanding from fiscal 2027 and beyond. ### What changed in the U.S. market? (nipponsteel.com) Reuters said Nippon Steel attributed the higher forecast to stronger U.S. Steel earnings and a firmer U.S. steel market. The company also referred to gains from U.S. market conditions in reporting carried by other outlets based on the same results announcement. (nipponsteel.com) Nippon Steel's materials did not present the forecast change as a broad recovery across all of its operations. Market coverage citing the filing said domestic conditions remained weak even as the U.S. business strengthened. ### When did U.S. Steel become central to Nippon Steel's earnings? Nippon Steel acquired U.S. Steel in June 2025 and began consolidating it from the July-September quarter of 2025, according to market coverage of the company's results. (money.usnews.com) By August 2026, the company was describing U.S. Steel as the main pillar of earnings in its updated outlook. A local U.S. report published on August 6 said planned investment tied to the acquisition included about $2.5 billion for U.S. (ryoex.com) Steel's Mon Valley Works. That report described U.S. Steel as a growth driver one year after the deal. ### What should investors and industry watchers look for next? (ryoex.com) The year in question ends on March 31, 2027, according to Nippon Steel's financial results page. The company's August 4 filings include its financial results, investor presentation and appendix for fiscal 2026. Those documents will be the next reference point for whether U.S. Steel meets the upgraded 180 billion yen underlying profit outlook and whether group net profit reaches 290 billion yen. (monvalleyindependent.com) (nipponsteel.com)