Nippon Steel, a leading steel manufacturing company in Japan, reported a 95% drop in net profit for the fiscal year ending March 31, 2026, totaling 17.2 billion yen.

Although the revenue rose by 15.7% year on year to 10 trillion yen, the company faced significant financial pressure from one-off losses related to its US$14.9 billion U.S. Steel acquisition. Operational disruptions at the Muroran Works plant in Japan also reduced the firm’s profits by 50 billion yen for the year.

Global market conditions worsened as low-priced Chinese exports flooded the industry. Despite these challenges, Representative Director, President, and COO Tadashi Imai remains optimistic about long-term growth in the United States.

The company planned a US$1.9 billion investment in an Arkansas direct reduced iron plant and expects U.S. Steel to become a major profit driver. Nippon Steel foresees a business profit of 700 billion yen for the upcoming year.