# KYOEI STEEL LTD.: business model and financials

> Latest period: FY ending Mar 2026, consolidated, J-GAAP
> Unit: JPY millions
> Sources: 有価証券報告書－第82期(2025/04/01－2026/03/31) (S100YGQP)
> Page: https://vizora.meequs.com/en/company/kyoei-steel
> Retrieved: 2026-09-30T19:14:48.170Z

## Company

Kyoei Steel, founded in 1947, is a company in Steel listed on TSE Prime. It has 4,068 employees (consolidated).

| Field | Value |
| --- | ---: |
| Legal name | KYOEI STEEL LTD. |
| Ticker | 5440 |
| Stock price | View on Yahoo Finance (https://finance.yahoo.co.jp/quote/5440.T) |
| Listing | TSE Prime |
| Head office | 大阪市北区堂島浜一丁目4番16号 |
| Representative (per filing) | 代表取締役社長 坂本 尚吾 |
| Founded | Aug 1947 |
| Share capital | ¥18.5B |
| Employees (consolidated) | 4,068 |
| Average salary (parent only) | ¥7.4M |
| Fiscal year end | March |
| Website | www.kyoeisteel.co.jp (https://www.kyoeisteel.co.jp/) |
| Corporate number | 5120001062898 |
| EDINET | E01266 |
| Industries (Vizora) | Steel, Waste Management & Recycling |

> Profile source: annual securities report (S100YGQP, filed 2026-06-23). As of filing

## Five-axis industry profile

Primary industry: Steel (2026-03-31)

| Axis | Industry percentile | Peers |
| --- | ---: | ---: |
| Revenue growth | 68.2 | 33 |
| Profitability | 67.1 | 35 |
| Cash conversion | 43.5 | 31 |
| Efficiency | 72.9 | 35 |
| Financial strength | 83.3 | 3 |

Each axis is shown independently. Missing values are labeled unavailable; no combined score is calculated. Industry rank is not an investment recommendation.

## Key points (generated from figures)

- About 57% of Kyoei Steel's sales come from STEEL(OVERSEAS), with STEEL and MATERIAL RECYCLING making up much of the rest.
- Out of every ¥100 of sales, about ¥6 is left as operating profit.
- Revenue changed -2.4% from the prior year, operating profit +10.7%.

## Company structure

- Segment revenue mix: STEEL(OVERSEAS) 56.8%、STEEL 39.8%、MATERIAL RECYCLING 1.9%、Other 1.5%
- Revenue → net income: ¥315106000000 → ¥11062000000
- Net income → operating cash flow: ¥11062000000 → ¥24730000000（difference ¥13668000000）
- Main uses of operating cash flow: CapEx ¥18396000000 / dividends ¥3911000000 / buybacks —
- Change in cash: ¥8306000000
Segment shares use total reported segment revenue, which may include inter-segment sales. The cash bridge is operating cash flow minus net income and combines non-cash items and working-capital effects.

## Key figures at a glance

| Metric | Value | Note |
| --- | ---: | ---: |
| Revenue | ¥315.1B |  |
| Operating income | ¥17B | Margin 5.4% |
| Net income | ¥9.86B | Margin 3.1% |
| Free cash flow | ¥6.33B |  |
| Largest business | STEEL(OVERSEAS) | of segment revenue 56.8% |
| Employees (consolidated) | 4,068 |  |
| EPS | ¥178 |  |
| Book value per share | ¥3861.63 |  |
| Equity ratio | 56.7% |  |
| Shares outstanding | 44,898,730 |  |
| Treasury shares | 1,439,800 |  |
| Shareholders | 28,550 |  |
| Average salary (parent only) | ¥7.4M | Filing company only |
| Cash ratio | 12.4% | Net cash -¥33.3B · Cash ÷ revenue 14.7% |
| Vs. industry median margin | +1.9 pp | Steel |
| ROE | 5.4% | Derived from disclosed figures |
| ROA | 2.7% | Derived from disclosed figures |

## Notable figures

- FY2026, operating cash flow is 2.5× net income
- FY2026, one segment accounts for 61% of positive segment profit
- FY2026, segment profit share differs by -23 points

## What changed in 5 years

| Metric | FY ending Mar 2021 | FY ending Mar 2026 | Change |
| --- | ---: | ---: | ---: |
| Revenue | ¥226371000000 | ¥315106000000 | +39.2% |
| Operating income | ¥12656000000 | ¥16967000000 | +34.1% |
| Operating margin | 5.6% | 5.4% | -0.2 pp |
| Employees | 3,985 people | 4,068 people | +2.1% |
| Cash and equivalents | ¥25351000000 | ¥46359000000 | +82.9% |

### Change in segment revenue mix

Span: FY ending Mar 2021 → FY ending Mar 2026. Stable segment keys are connected; unmatched shares are marked as new or reorganized. Shares use total segment revenue.

| Flow | Revenue share |
| --- | ---: |
| 国内鉄鋼事業 → 国内鉄鋼事業 | 39.8% |
| 国内鉄鋼事業 → 事業再編・廃止 | 9.3% |
| 海外鉄鋼事業 → 海外鉄鋼事業 | 46.4% |
| 環境リサイクル事業 → 環境リサイクル事業 | 1.9% |
| 環境リサイクル事業 → 事業再編・廃止 | 1.1% |
| その他 → その他 | 1.5% |
| その他 → 事業再編・廃止 | 0.1% |
| 新設・再編 → 海外鉄鋼事業 | 10.4% |

Segment revenue source references: 8 (derived)

## Business growth × margin

X-axis: segment revenue CAGR. Y-axis: latest operating margin. Bubble size: latest revenue. CAGR requires at least two comparable years.

| Segment | CAGR span | Revenue CAGR | Latest revenue | Operating margin | Source refs |
| --- | ---: | ---: | ---: | ---: | ---: |
| STEEL(OVERSEAS) | 5 years | +11.3% | ¥178988000000 | 3.4% | 2 |
| STEEL | 5 years | +2.5% | ¥125527000000 | 9.0% | 2 |
| MATERIAL RECYCLING | 5 years | -2.4% | ¥5945000000 | 9.2% | 2 |
| Other | 5 years | +5.6% | ¥4646000000 | 9.1% | 2 |

## Income statement（FY ending Mar 2026, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Revenue | 315,106 | 100.0% | S100YGQP |
| Cost of revenue | 275,131 | 87.3% | S100YGQP |
| Gross profit | 39,975 | 12.7% | S100YGQP |
| SG&A | 23,008 | 7.3% | S100YGQP |
| Operating income | 16,967 | 5.4% | S100YGQP |
| Ordinary income | 16,211 | 5.1% | S100YGQP |
| Pretax income | 15,145 | 4.8% | S100YGQP |
| Income tax | 4,083 | 1.3% | S100YGQP |
| Net income | 11,062 | 3.5% | S100YGQP |
| Net income attributable to owners | 9,864 | 3.1% | S100YGQP |

## Per ¥100 of revenue（FY ending Mar 2026）

| Part | JPY |
| --- | ---: |
| Cost of revenue | 87 |
| SG&A | 7 |
| Operating income | 6 |
| (Ref.) Net income | 3 |

### Margin funnel

Gross margin 12.7% → Operating margin 5.4% → Net margin 3.1%
Derived from reported figures (DERIVED).

## Revenue and profit pattern

Pattern: Revenue down, profit up
Revenue growth: -2.4%; Core profit growth: +10.7%
Operating leverage (core profit growth ÷ revenue growth): -4.45×
Calculated from comparable annual consolidated filings.

## Year over year（FY ending Mar 2025 → FY ending Mar 2026、JPY mn）

| Metric | Prior | Current | Change | % change |
| --- | ---: | ---: | ---: | ---: |
| Revenue | 322,849 | 315,106 | -7,743 | -2.4% |
| Gross profit | 38,327 | 39,975 | 1,648 | +4.3% |
| Operating income | 15,332 | 16,967 | 1,635 | +10.7% |
| Net income attributable to owners | 10,791 | 9,864 | -927 | -8.6% |
| Operating cash flow | 39,408 | 24,730 | -14,678 | -37.2% |
| Free cash flow | 25,582 | 6,334 | -19,248 | -75.2% |

## History（JPY mn）

| Period | Revenue | Op. income | Op. margin | Net income | Op. CF | FCF | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| FY ending Mar 2020 | 239,343 | 19,404 | 8.1% | 7,978 | 33,246 | 25,349 | S100NAS6 |
| FY ending Mar 2021 | 226,371 | 12,656 | 5.6% | 8,788 | 15,191 | 5,106 | S100OFNT |
| FY ending Mar 2022 | 292,719 | 8,819 | 3.0% | 6,322 | -13,697 | -25,573 | S100RWTG |
| FY ending Mar 2023 | 355,715 | 14,819 | 4.2% | 13,108 | 19,259 | 12,135 | S100TSUG |
| FY ending Mar 2024 | 320,982 | 21,055 | 6.6% | 13,826 | 24,290 | 13,460 | S100W2DI |
| FY ending Mar 2025 | 322,849 | 15,332 | 4.7% | 10,791 | 39,408 | 25,582 | S100YGQP |
| FY ending Mar 2026 | 315,106 | 16,967 | 5.4% | 9,864 | 24,730 | 6,334 | S100YGQP |

## People and productivity（FY ending Mar 2026, consolidated, J-GAAP）

| Metric | Value |
| --- | ---: |
| Revenue per employee (consolidated) | ¥77.5M |
| Operating income per employee (consolidated) | ¥4.2M |
| Net income per employee (consolidated) | ¥2.4M |

Employees, revenue and profit are consolidated. Average annual salary is a separate parent-company figure. Calculated from disclosed figures (DERIVED).

| History | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Employees (consolidated) | 4,021 | 3,972 | 3,938 | 3,903 | 4,068 |
| Average salary (parent company) | ¥6.4M | ¥7.1M | ¥7.6M | ¥7.7M | ¥7.4M |
| Average age (parent company) | 39.8 years | 40.2 years | 40.3 years | 40.8 years | 41.3 years |
| Average tenure (parent company) | 15.8 years | 16.2 years | 15.9 years | 16.3 years | 16.9 years |

Year over year: Employees (consolidated) +4.2% · Revenue (consolidated) -2.4%

## Segments（FY ending Mar 2026, consolidated, J-GAAP、JPY mn）

| Segment | Revenue | Share | Op. income | Op. margin |
| --- | ---: | ---: | ---: | ---: |
| STEEL | 125,527 | 39.8% | 11,258 | 9.0% |
| STEEL(OVERSEAS) | 178,988 | 56.8% | 6,143 | 3.4% |
| MATERIAL RECYCLING | 5,945 | 1.9% | 546 | 9.2% |
| Other | 4,646 | 1.5% | 425 | 9.1% |

### segmentMix — Revenue and profit mix

Calculated from disclosed figures (DERIVED). Shares use total segment revenue and total positive segment profit respectively. Difference = profit share − revenue share (pt). Inter-segment sales may prevent reconciliation to company revenue.

| Segment | Revenue share | Profit share | Difference (pt) | Margin |
| --- | ---: | ---: | ---: | ---: |
| STEEL | 39.8% | 61.3% | 21.4 | 9.0% |
| STEEL(OVERSEAS) | 56.8% | 33.4% | -23.4 | 3.4% |
| MATERIAL RECYCLING | 1.9% | 3.0% | 1.1 | 9.2% |
| Other | 1.5% | 2.3% | 0.8 | 9.1% |

Segment → industry: STEEL(OVERSEAS) → Steel / STEEL → Steel / MATERIAL RECYCLING → Waste Management & Recycling

## Revenue by geography

No geographic revenue breakdown was disclosed.

## Cash flow（FY ending Mar 2026, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Operating cash flow | 24,730 | 7.8% | S100YGQP |
| Capital expenditure | 18,396 | 5.8% | S100YGQP |
| Free cash flow | 6,334 | 2.0% | 算出 |
| Investing cash flow | -15,433 | -4.9% | S100YGQP |
| Financing cash flow | -1,303 | -0.4% | S100YGQP |
| Dividends paid | 3,911 | 1.2% | S100YGQP |
| Change in cash | 8,306 | 2.6% | S100YGQP |
| Cash and equivalents | 46,359 | 14.7% | S100YGQP |

## Balance sheet

Figures are as of each fiscal year end. Derived values are marked as such in the source column. Lease liabilities are excluded from interest-bearing debt.

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Cash and equivalents | 27,210 | 32,421 | 26,094 | 38,052 | 46,359 | S100TSUG, S100W2DI, S100YGQP |
| Total assets | 314,203 | 337,713 | 354,217 | 352,828 | 373,127 | S100RWTG, S100TSUG, S100W2DI, S100YGQP |
| Net assets | 175,689 | 190,174 | 201,430 | 209,157 | 218,808 | S100TSUG, S100W2DI, S100YGQP |
| Share capital | 18,516 | 18,516 | 18,516 | 18,516 | 18,516 | S100RWTG, S100TSUG, S100W2DI, S100YGQP |
| Property, plant and equipment | 99,201 | 102,194 | 101,448 | 109,738 | 117,426 | S100RWTG, S100TSUG, S100W2DI, S100YGQP |
| Intangible assets excluding goodwill | 4,167 | 3,993 | 3,773 | 3,081 | 2,838 | S100RWTG, S100TSUG, S100W2DI, S100YGQP |
| Goodwill | 856 | 829 | 797 | 702 | 613 | S100RWTG, S100TSUG, S100W2DI, S100YGQP |
| Investment securities | 11,155 | 14,065 | 18,060 | 17,526 | 17,644 | S100RWTG, S100TSUG, S100W2DI, S100YGQP |
| Current assets | 194,020 | 210,591 | 220,891 | 211,297 | 221,057 | S100RWTG, S100TSUG, S100W2DI, S100YGQP |
| Current liabilities | 92,793 | 99,635 | 107,925 | 103,259 | 102,677 | S100RWTG, S100TSUG, S100W2DI, S100YGQP |
| Trade payables | 18,692 | 16,370 | 22,279 | 21,374 | 23,877 | S100RWTG, S100TSUG, S100W2DI, S100YGQP |
| Short-term borrowings | 54,393 | 58,342 | 55,351 | 50,369 | 40,955 | S100RWTG, S100TSUG, S100W2DI, S100YGQP |
| Long-term borrowings | 25,277 | 26,960 | 22,612 | 18,053 | 28,670 | S100RWTG, S100TSUG, S100W2DI, S100YGQP |
| Bonds | 10,000 | 10,000 | 10,000 | 10,000 | 10,000 | S100RWTG, S100TSUG, S100W2DI, S100YGQP |
| Interest-bearing debt | 89,670 | 95,302 | 87,963 | 78,422 | 79,625 | 算出 |
| Total liabilities | 138,515 | 147,539 | 152,787 | 143,671 | 154,319 | S100RWTG, S100TSUG, S100W2DI, S100YGQP |
| Non-controlling interests | 12,734 | 10,487 | 6,790 | 6,169 | 7,147 | S100RWTG, S100TSUG, S100W2DI, S100YGQP |
| Equity attributable to owners of parent | 152,059 | 162,030 | 172,300 | 178,479 | 184,378 | S100RWTG, S100TSUG, S100W2DI, S100YGQP |
| Retained earnings | 114,130 | 125,499 | 135,848 | 142,043 | 147,968 | S100RWTG, S100TSUG, S100W2DI, S100YGQP |
| Treasury stock | -1,700 | -1,700 | -1,700 | -1,700 | -1,700 | S100RWTG, S100TSUG, S100W2DI, S100YGQP |

### Assets and funding mix

| Assets | Share | Source |
| --- | ---: | ---: |
| Cash | 12% | S100YGQP |
| Property, plant and equipment | 32% | S100YGQP |
| Intangibles and goodwill | 1% | S100YGQP |
| Investment securities | 5% | S100YGQP |
| Other assets | 50% | S100YGQP |

| Funding source | Share | Source |
| --- | ---: | ---: |
| Trade payables | 6% | S100YGQP |
| Interest-bearing debt | 21% | 算出 |
| Other liabilities | 14% | S100YGQP |
| Equity | 59% | S100YGQP |

### Balance sheet history

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Total assets | 314,203 | 337,713 | 354,217 | 352,828 | 373,127 |
| Equity | 175,689 | 190,174 | 201,430 | 209,157 | 218,808 |
| Interest-bearing debt | 89,670 | 95,302 | 87,963 | 78,422 | 79,625 |
| Cash | 27,210 | 32,421 | 26,094 | 38,052 | 46,359 |

## Asset intensity and goodwill

Ratios are derived from reported values. Goodwill is used only when separately reported, never inferred from combined intangible assets.

| Metric | Value | Sources |
| --- | ---: | ---: |
| Asset intensity (fixed assets ÷ revenue) | 37.3% | S100YGQP |
| Fixed assets ÷ total assets | 31.5% | S100YGQP |
| Goodwill ÷ parent equity | 0.3% | S100YGQP |

Goodwill over 4 years: 856 → 613 JPY; total investing cash flow: -41,568 JPY. This does not imply causation.

### Cash quality

Net cash = cash − interest-bearing debt. Net debt ratio = (interest-bearing debt − cash) ÷ positive operating cash flow. Omit when debt components are incomplete; other ratios are derived from reported figures.

| Metric | Value |
| --- | ---: |
| Cash ratio (cash ÷ total assets) | 12.4% |
| Cash ÷ revenue | 14.7% |
| Net cash (cash − interest-bearing debt) | -¥33.3B |
| Net debt ÷ operating cash flow | 1.35× |
| Cash conversion (operating CF ÷ operating income) | 145.8% |
| Cash vs. profit gap | 14,866 JPY mn (of net income 150.7%) |
| Shareholder returns / net income | — |
| Shareholder returns / FCF | — |
| Shareholder payments — dividends / net income | 39.6% |
| Shareholder payments — dividends / FCF | 61.7% |
| CapEx intensity (capex ÷ revenue) | 5.8% |
| Investing CF relative to operating CF | 62.4% |

## ROA and ROE

ROE is decomposed into net margin × asset turnover × financial leverage. Leverage can raise ROE, so the ratio alone does not assess a company's condition. Ending balances are used without a prior year; total equity approximates parent equity when unavailable.

| Period | Net margin | Asset turnover | ROA | Financial leverage | ROE | Sources |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| 2022 | 2.2% | 0.93× | 2.0% | 2.07× | 4.2% | S100RWTG |
| 2023 | 3.7% | 1.09× | 4.0% | 2.08× | 8.3% | S100TSUG |
| 2024 | 4.3% | 0.93× | 4.0% | 2.07× | 8.3% | S100W2DI |
| 2025 | 3.3% | 0.91× | 3.1% | 2.02× | 6.2% | S100YGQP |
| 2026 | 3.1% | 0.87× | 2.7% | 2.00× | 5.4% | S100YGQP |

## Ownership

| Counterparty | Relation | Ratio | As of |
| --- | ---: | ---: | ---: |
| 日本製鉄株式会社 | Major shareholder | 26.7% | 2026-03-31 |
| 高島 秀一郎 | Major shareholder | 10.0% | 2026-03-31 |
| 日本マスタートラスト信託銀行株式会社（信託口） | Major shareholder | 6.2% | 2026-03-31 |
| 高島 成光 | Major shareholder | 5.1% | 2026-03-31 |
| 三井物産株式会社 （常任代理人 株式会社日本カストディ銀行） | Major shareholder | 3.4% | 2026-03-31 |
| 合同製鐵株式会社 | Major shareholder | 3.1% | 2026-03-31 |
| 株式会社日本カストディ銀行（三井住友信託銀行再信託分・エア・ウォーター株式会社退職給付信託口） | Major shareholder | 3.0% | 2026-03-31 |
| 株式会社日本カストディ銀行（三井住友信託銀行再信託分・エア・ウォーター防災株式会社退職給付信託口） | Major shareholder | 1.6% | 2026-03-31 |
| 株式会社日本カストディ銀行（信託口） | Major shareholder | 1.6% | 2026-03-31 |
| エア・ウォーター株式会社 | Major shareholder | 1.6% | 2026-03-31 |

## AI commentary（text by AI; the tables above are authoritative、claude-code）

- Revenue for the FY ending Mar 2026 was ¥315.1B, down -2.4% from ¥322.8B a year earlier.
- Profit moved the other way: operating income rose +10.7% from ¥15.3B to ¥17B, and gross profit grew +4.3% to ¥40B.
- Net income attributable to owners fell -8.6% to ¥9.86B.
- Cash generation dropped sharply, with operating cash flow at ¥24.7B (-37.2%) and free cash flow at ¥6.33B (-75.2%).

### Drivers

- The overseas steel business swung from an operating loss to a profit. In Vietnam, government infrastructure spending kept steel demand strong, and higher shipments plus cost cuts put every plant in the black.
- In North America, the US plant struggled with aging equipment and lost money for the full year, but turned profitable in the second half as operations steadied and prices rose. The Canadian plant sold more of its higher-margin thin rebar.
- Domestic steel saw lower sales and profit. Construction delays cut shipments, and a late-year jump in scrap prices narrowed the gap between product prices and raw material costs.

### Risks

- Scrap, electrodes, ferroalloys and energy could become more expensive or harder to source, for example because of tension in the Middle East.
- Japan has many competing electric-furnace mills and too much capacity, and the company expects demand for construction steel to keep shrinking.
- The company sees progress on its new steelmaking plant and rolling-mill overhaul at the US site as one factor that will shape future results.

Cited: Annual securities report (82nd term) (経営者による財政状態、経営成績及びキャッシュ・フローの状況の分析); Annual securities report (82nd term) (事業等のリスク)

## Sources

| Document | ID | Published | URL |
| --- | ---: | ---: | ---: |
| 有価証券報告書－第82期(2025/04/01－2026/03/31) | S100YGQP | 2026-06-23 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100YGQP,, |
| 有価証券報告書－第81期(2024/04/01－2025/03/31) | S100W2DI | 2025-06-24 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100W2DI,, |
| 有価証券報告書－第80期(2023/04/01－2024/03/31) | S100TSUG | 2024-06-26 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100TSUG,, |
| 訂正有価証券報告書－第79期(2022/04/01－2023/03/31) | S100RWTG | 2023-09-29 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100RWTG,, |
| 有価証券報告書－第78期(令和3年4月1日－令和4年3月31日) | S100OFNT | 2022-06-27 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100OFNT,, |
| 訂正有価証券報告書－第77期(令和2年4月1日－令和3年3月31日) | S100NAS6 | 2022-01-31 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100NAS6,, |

## Definitions

- Amounts are in millions of JPY (rounded). The period is stated in each table heading
- Operating margin = operating income ÷ revenue. Net income is attributable to owners of the parent when disclosed
- Free cash flow (FCF) = operating cash flow − capital expenditure
- ¥100 model = breakdown per ¥100 of revenue (rounded so parts sum to 100)
- Segment revenues include inter-segment sales and may not sum to consolidated revenue
- Source IDs are EDINET document IDs (docID). "算出" (derived) means computed from other disclosed values
- All figures are extracted mechanically from filings. AI-written text never generates figures
- Source: company filings submitted to EDINET (Financial Services Agency of Japan). Figures were extracted, edited and processed, and charts and text were created, by Vizora — not by the FSA (used under the Public Data License v1.0).