The company stated that these developments directly affected its ongoing fiscal year performance.

The company reported that the losses caused an approximate 40 billion yen decrease in net profit and increased its previously announced loss forecast from 60 billion yen to 70 billion yen.

Nippon Steel also stated that, due to the weak financial performance of United States Steel Corp., the expected earnings contribution from this company has been calculated as zero.

Senior managing director Takahiko Iwai emphasized that steel prices in the United States have increased, but adverse weather conditions disrupted component supply. Regarding the company acquired last year, Iwai stated that uncertainties persist.

The company had reported a net profit of 362 billion yen in the same period of the previous year, while recording a net loss of 45 billion yen from April to December 2025.

Officials stated that a significant portion of the loss resulted from restructuring expenses incurred after terminating a joint venture with a European producer in the United States during the US Steel acquisition process.

Nippon Steel stated that excessive production in China has pushed down global steel prices, negatively affecting revenue.

The company emphasized that weak demand in global markets and operational disruptions may continue to exert pressure on short-term financial performance.