INTERVIEW: Nippon Steel Expects U.S. Steel’s Profit Contribution from FY 2026

Tokyo, Feb. 21 (Jiji Press)–Nippon Steel Corp. now expects United States Steel Corp. to begin contributing to its profits in the first half of fiscal 2026, Nippon Steel Chief Financial Officer Takahiko Iwai has suggested. “In the next fiscal year, we’ll be able to add” profits from U.S. Steel, which the Japanese company acquired last June, Iwai said in a recent interview. “We’re most looking forward (to strengthening U.S. Steel’s profitability) for the coming fiscal year,” he added. For the current fiscal year ending next month, Nippon Steel initially projected an 80-billion-yen boost from the acquisition of U.S. Steel. However, it revised the forecast to zero due to the sluggish U.S. steel market. Iwai noted that the U.S. market has “improved considerably” thanks to strong demand from automakers and a decline in imports stemming from tariffs imposed by U.S. President Donald Trump’s administration. He also said that efforts including to improve productivity at U.S. Steel’s Arkansas plant are progressing with the help of around 100 engineers dispatched by Nippon Steel. Regarding China’s massive steel exports, which have dampened the global market, Iwai said it will be difficult for the country to further increase exports, due to anti-dumping measures imposed by other countries. “The Asian market could also bottom out,” he added. Meanwhile, Nippon Steel sees no need to further cut its domestic production capacity before fiscal 2030, the CFO stressed. “We’ll review our organization and work to establish our competitive advantage,” he said. END [Copyright The Jiji Press, Ltd.]