Management expresses confidence about profits of ¥100bn at US Steel

Research evidence excerpt

Management expresses confidence about profits of ¥100bn at US Steel

Global Markets Research

18 June 2026Nippon Steel

5401.T 5401 JP / EQUITY: JAPAN STEEL, NONFERROUS METALS, WIRE & CABLE

Management expresses confidence about profits Rating Buyof ¥100bn at US Steel

Target price JPY 740Quick Note

Closing price

17 June 2026 JPY 557.5We think management has become increasingly confident about recovery in

earnings at US Steel (Note: Quick Note reports are not a

In an interview published by Kyodo News and other news outlets on 18 June, Nippon vehicle for changes to ratings, target

Steel's vice chairman and executive vice president Takahiro Mori expressed confidence prices, or earnings forecasts)

that US Steel would contribute ¥100bn to Nippon Steel's profits in 27/3. US Steel incurred

underlying losses (business profits ex one-time factors) of ¥5.6bn in 26/3 but is guiding for

profits of at least ¥100bn in 27/3. We forecast underlying profits of ¥95.0bn at US Steel in

27/3. It has been our view that underlying profits at US Steel could be higher than we have

Research Analystsforecast owing to the rise in steel prices in the US, and we have noted this as a potential

upside factor for earnings (see our 18 May 2026 report Japansteel,nonferrousmetals, Japan steel, nonferrous metals,

wire&cable:Resultsreview). We regard Mr Mori’s comment as an indication that Nippon wire & cable

Steel's management team has become more confident about a recovery in earnings at US Yuji Matsumoto - NSC

Steel. yuji.matsumoto@nomura.com

+81 3 6703 1220

We expect Apr–Jun results to show that earnings at US Steel are recovering

Nippon Steel announced in August 2025, immediately after the acquisition of US Steel,

that it expected underlying profits at US Steel to amount to ¥80bn in 26/3, but then