Financial Summary for Q3 Fiscal Year Ending March 2026 [IFRS] (Consolidated)

Performance Overview

In the consolidated cumulative period for Q3 of the fiscal year ending March 2026, revenue increased 10.7% YoY to 7,256.32 billion yen; however, operating income declined 81.1% YoY to 107.05 billion yen, and net income attributable to owners of the parent recorded a loss of 45.00 billion yen. This was mainly due to recording restructuring losses of 249.09 billion yen and increased financial expenses. Basic earnings per share for the quarter were △8.61 yen, marking a significant turnaround from 73.60 yen in the previous year. On the consolidated balance sheet, total assets rose from 10,942.45 billion yen in the previous year to 14,443.09 billion yen, while the equity ratio attributable to owners of the parent decreased to 36.8%.

Overview of Business Combination and Future Outlook

On June 18, 2025, the merger was completed between the U.S. subsidiary and United States Steel Corporation (U.S. Steel), expanding global crude steel production capacity to 82 million tons. The acquisition consideration amounted to approximately 2.0621 trillion yen, and goodwill of 396.03 billion yen has been recorded provisionally. Backed by stable demand in the U.S. market and expectations for premium steel demand, the company will strengthen the provision of products and services leveraging its technological capabilities and promote technology integration aimed at achieving carbon neutrality by 2050. The full-year earnings guidance for the fiscal year ending March 2026 expects increased revenue of 10 trillion yen (up 15.0% YoY), but operating income is expected to decrease to 420 billion yen (down 38.5% YoY), and net income attributable to owners of the parent is forecasted as a loss of 700 billion yen.