Nippon Steel Posts $1.3 Billion Quarterly Loss Amid U.S. Steel Deal Impact

Nippon Steel (TYO:5401) reported a net loss of 195.83 billion yen ($1.30 billion) for the quarter ended June 30, significantly wider than the 25.7 billion yen loss forecast by LSEG analysts. The result contrasts sharply with the 157.56 billion yen profit logged in the same quarter last year, reflecting the financial strain of its U.S. Steel acquisition.

Operating loss reached 139.56 billion yen, compared to a 236.9 billion yen operating profit a year earlier. Business profit came in at 92.02 billion yen, while revenue declined to 2 trillion yen from 2.19 trillion yen in the prior-year period. Basic earnings per share dropped to negative 187.36 yen from 169.32 yen.

For fiscal 2025, Nippon Steel projects revenue of 10 trillion yen and business profit of 480 billion yen. It forecasts a net loss of 40 billion yen but clarified that excluding one-time charges from the U.S. Steel deal, net profit would be 220 billion yen. Underlying business profit, a key internal metric that removes one-off impacts, is expected to reach 730 billion yen, including 80 billion yen from U.S. Steel operations.

The steelmaker maintained its plan to pay a full-year dividend of 120 yen per share, including an interim 60 yen payout. Additionally, a 5-for-1 stock split is scheduled for October 1 to broaden its investor base.

This performance underscores the challenges faced by Japan’s largest steelmaker amid global market volatility and ongoing integration of U.S. Steel, even as it positions for long-term growth through expanded overseas operations.