Nippon Steel Solutions Co., Ltd. (2327) Financial Summary for the Fiscal Year Ending March 2026

Overview of Results

For the fiscal year ending March 2026, consolidated results delivered increased revenue and earnings with revenue of JPY 381,340 million (YoY +12.7%), operating income of JPY 44,242 million (+14.9%), and net income attributable to owners of parent of JPY 30,832 million (+14.0%). This performance was driven primarily by increased sales in the industrial and steel sectors as well as distribution, along with the new consolidation of Infocom Corporation. The rise in operating income absorbed increases in selling, general, and administrative expenses and benefited from an improved gross margin. Basic earnings per share amounted to JPY 168.50, rising compared to the previous year.

Financial Position and Cash Flow Status

Total assets slightly declined to JPY 417,584 million (YoY △0.9%) while total equity increased to JPY 288,808 million (YoY +7.0%), raising the equity ratio attributable to owners of parent to 66.9%. Cash flow from operating activities was negative JPY 3,409 million, a decrease from the previous year; cash flow from investing activities was negative JPY 59,380 million, and cash flow from financing activities was negative JPY 21,620 million. The cash and cash equivalents balance at fiscal year-end was JPY 108,798 million.

Dividend Status

The annual dividend for the fiscal year ending March 2026 was JPY 85.00 (YoY +JPY 11), representing a consolidated payout ratio of 50.4%. The year-end dividend was increased to JPY 45.00. The dividend forecast for the fiscal year ending March 2027 is an annual total of JPY 87.00, expected to maintain the consolidated payout ratio at 50.4%.

Outlook and Growth Strategy

The consolidated earnings forecast for the fiscal year ending March 2027 projects revenue of JPY 417,000 million (YoY +9.4%), operating income of JPY 47,500 million (+7.4%), and net income attributable to owners of parent of JPY 31,600 million (+2.5%). Despite an uncertain business environment, growth is targeted amid strong demand for digital transformation (DX). External growth strategies actively pursue M&A and capital business alliances, including the acquisition of Infocom Corporation.