Fiscal 2026 Second Quarter Earnings Investors’ Meeting

Earnings Highlights and Outlook

JFE Group reported first-half results for fiscal 2026 with net sales of 2,400.4 billion yen, operating profit of 76.7 billion yen, and profit attributable to owners of parent of 53.7 billion yen, all showing improvement versus previously announced figures. The impacts of the heavy rain and typhoon in Chiba remain, but recovery is expected in the second half through passing on price increases and cost management. Full-year net sales are forecast at 4,900.0 billion yen, operating profit at 195.0 billion yen, and profit attributable to owners of parent at 130.0 billion yen. The dividend policy foresees an annual dividend with a floor of 80 yen, maintaining stable shareholder returns.

Financial Soundness and Key Measures

Debt/EBITDA is expected to be 4.5x and D/E around 66%, and the company plans to proceed with asset disposals and review investment plans to ensure financial soundness. In light of the first-half deterioration due to the Chiba heavy rain and typhoon, JFE will pursue asset reduction and optimization of fundraising to achieve its fiscal 2027 financial targets. In line with the 8th medium-term plan, the company will promote streamlining domestic production, increasing the ratio of high value-added products, expanding overseas businesses, and the adoption of GX steel.