Earnings quality
Compare earnings and operating cash flow for earnings quality.
Nippon Steel Corporation
Ticker 5401 · 🇯🇵 Japan · Consolidated IFRS · amounts in yen
Filed 2026-06-23 · Period end 2026-03-31
Takeaway
Dig deeperThe numbers send mixed signals — dig into cash flow and leverage before drawing a conclusion.
equity ratio is 37.7%.
Mixed signals — use cash flow and the balance sheet before treating the year as clean.
ActionDig deeper
OP margin—
Equity ratio37.7%
Last price—
Trailing P/E—
Look at next
- Compare operating cash flow to reported profit across the last two years.
- Open English IR for management commentary on outlook and capital allocation.
- Overlay peers on Compare before judging relative momentum.
About the company
日本製鉄株式会社 is a Japanese listed company. Its reportable segments include Chemicals And Materials, Engineering, Steel Manufacturing, System Solution.
- Chemicals And Materials
- Engineering
- Steel Manufacturing
- System Solution
- Total Of
Segments Chemicals And Materials · Engineering · Steel Manufacturing · System Solution · Total Of
Compare trends
No phone/email found in this filing · Filing date 2026-06-23
Financial statements
Income statement
| Account | FY2025 (ended Mar 31, 2025) | FY2026 (ended Mar 31, 2026) |
|---|---|---|
| Revenue | — | — |
| Cost of sales* | — | — |
| Gross profit | ¥1.4T | ¥1.4T |
| Operating profit (loss) | ¥548.0B | ¥242.9B |
| Finance income | ¥20.8B | ¥31.1B |
| Finance costs | ¥44.4B | ¥101.2B |
| Income tax expense | ¥141.4B | ¥128.1B |
| Profit (loss) | ¥383.0B | ¥44.8B |
| Profit (loss) attributable to owners | ¥350.2B | ¥17.2B |
| Basic EPS (¥) | 70.18 | 3.28 |
Balance sheet
| Account | FY2025 (ended Mar 31, 2025) | FY2026 (ended Mar 31, 2026) |
|---|---|---|
| Cash and cash equivalents | ¥672.5B | ¥461.3B |
| Current assets | ¥4.5T | ¥5.3T |
| Non-current assets | ¥6.4T | ¥9.4T |
| Total assets | ¥10.9T | ¥14.7T |
| Short-term borrowings | — | — |
| Current liabilities | ¥2.3T | ¥3.0T |
| Non-current liabilities* | ¥2.7T | ¥5.7T |
| Total liabilities | ¥5.0T | ¥8.6T |
| Equity attributable to owners | ¥5.4T | ¥5.5T |
| Total equity | ¥5.9T | ¥6.0T |
Cash flow statement
| Account | FY2025 (ended Mar 31, 2025) | FY2026 (ended Mar 31, 2026) |
|---|---|---|
| Cash flows from operating activities | ¥978.6B | ¥716.9B |
| Cash flows from investing activities | -¥462.4B | -¥2.8T |
| Cash flows from financing activities | -¥313.3B | ¥1.9T |
| Net increase (decrease) in cash | ¥223.6B | -¥211.3B |
| Cash at end of period | ¥672.5B | ¥461.3B |
Five-year trends
Key metrics
| Metric | Trend | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|
| Revenue | ¥6.8T | ¥8.0T | ¥8.9T | ¥8.7T | ¥10.1T | |
| Operating profit | — | — | — | ¥548.0B | ¥242.9B | |
| Profit to owners | ¥637.3B | ¥694.0B | ¥549.4B | ¥350.2B | ¥17.2B | |
| Total assets | ¥8.8T | ¥9.6T | ¥10.7T | ¥10.9T | ¥14.7T | |
| Cash & equivalents | ¥551.0B | ¥670.4B | ¥448.9B | ¥672.5B | ¥461.3B | |
| Owners’ equity | ¥3.5T | ¥4.2T | ¥4.8T | ¥5.4T | ¥5.5T |
How we read these numbers
From the notes
| Item | Amount | Note |
|---|---|---|
| Affiliates stock valuation loss | -¥46.3B | Parent-company special loss (特別損失) |
| Parent special losses (total) | -¥135.7B | Sum of 特別損失 on the parent-company statement |
Mixed
The numbers send mixed signals — dig into cash flow and leverage before drawing a conclusion.
On the income statement, revenue moved from — to — (—), so the top line did not break. Gross profit only slipped from ¥1.4T to ¥1.4T, while operating profit swung from ¥548.0B to ¥242.9B — the damage is concentrated below gross profit.
The notes flag material one-offs this year, including Affiliates stock valuation loss ¥46.3B, Parent special losses (total) ¥135.7B. Treat these as discrete charges when reading the earnings move.
The parent-company income statement also shows material special losses (valuation, spin-off, and affiliate support items).
Operating cash flow was ¥716.9B (prior ¥978.6B), with cash on the balance sheet at ¥461.3B versus ¥672.5B.
The balance sheet got heavier on leverage. Total liabilities rose to ¥8.6T while owners’ equity fell to ¥5.5T. ROE moved from 6.9% to 0.3%, and the equity ratio from 49.2% to 37.7%. Employee count is 138,453 vs 113,845 a year earlier.
Liquidity & leverage
Short-term borrowing levels look more stable year over year.
Capital buffer
Owners’ equity ratio fell from 49.2% to 37.7%; the balance sheet absorbed a heavy loss year.
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Source: EDINET S100YF8E
(日本製鉄株式会社), period end 2026-03-31.