# NIPPON STEEL CORPORATION: business model and financials

> Latest period: FY ending Mar 2026, consolidated, IFRS
> Unit: JPY millions
> Sources: 有価証券報告書－第101期(2025/04/01－2026/03/31) (S100YF8E)
> Page: https://vizora.meequs.com/en/company/nippon-steel
> Retrieved: 2026-09-30T21:18:34.207Z

## Company

Nippon Steel, founded in 1950, is a company in Steel listed on TSE Prime. It has 138,453 employees (consolidated).

| Field | Value |
| --- | ---: |
| Legal name | NIPPON STEEL CORPORATION |
| Ticker | 5401 |
| Stock price | View on Yahoo Finance (https://finance.yahoo.co.jp/quote/5401.T) |
| Listing | TSE Prime |
| Head office | 東京都千代田区丸の内二丁目6番1号 |
| Representative (per filing) | 代表取締役社長 兼 COO 今井正 |
| Founded | Apr 1950 |
| Share capital | ¥569.5B |
| Employees (consolidated) | 138,453 |
| Average salary (parent only) | ¥9.1M |
| Fiscal year end | March |
| Website | www.nipponsteel.com (https://www.nipponsteel.com/) |
| Corporate number | 3010001008848 |
| EDINET | E01225 |
| Industries (Vizora) | Steel, Chemicals, IT Services & System Integration, Plant Engineering & Building Services |

> Profile source: annual securities report (S100YF8E, filed 2026-06-23). As of filing

## Five-axis industry profile

Primary industry: Steel (2026-03-31)

| Axis | Industry percentile | Peers |
| --- | ---: | ---: |
| Revenue growth | 95.5 | 33 |
| Profitability | 27.1 | 35 |
| Cash conversion | 79 | 31 |
| Efficiency | 61.4 | 35 |

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 91% of Nippon Steel's sales come from Steel manufacturing, with Engineering and System solution making up much of the rest.
- Out of every ¥100 of sales, about ¥2 is left as operating profit.
- Revenue changed +15.7% from the prior year, operating profit -55.7%.

## Company structure

- Segment revenue mix: Steel manufacturing 91.2%、Engineering 3.6%、System solution 2.9%、Chemicals and materials 2.4%
- Revenue → net income: ¥10063216000000 → ¥44754000000
- Net income → operating cash flow: ¥44754000000 → ¥716939000000（difference ¥672185000000）
- Main uses of operating cash flow: CapEx ¥863176000000 / dividends ¥146480000000 / buybacks ¥29000000
- Change in cash: ¥-211264000000
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 | ¥10.1T |  |
| Operating income | ¥242.9B | Margin 2.4% |
| Net income | ¥17.2B | Margin 0.2% |
| Free cash flow | -¥146.2B |  |
| Largest business | Steel manufacturing | of segment revenue 91.2% |
| Employees (consolidated) | 138,453 |  |
| EPS | ¥3.28 |  |
| Diluted EPS | ¥3.28 |  |
| Book value per share | ¥551.63 |  |
| Equity ratio | 37.7% | Derived from disclosed figures |
| Shares outstanding | 5,373,633,000 |  |
| Treasury shares | 146,023,800 |  |
| Shareholders | 840,267 |  |
| Average salary (parent only) | ¥9.1M | Filing company only |
| Cash ratio | 3.1% | Cash ÷ revenue 4.6% |
| Vs. industry median margin | -1.1 pp | Steel |
| ROE | 0.3% | Derived from disclosed figures |
| ROA | 0.1% | Derived from disclosed figures |

## Notable figures

- FY2026, operating cash flow is 41.8× net income
- FY2026, parent-company salary changed +70% over five years
- FY2026, cash is 3% of total assets

## What changed in 5 years

| Metric | FY ending Mar 2021 | FY ending Mar 2026 | Change |
| --- | ---: | ---: | ---: |
| Revenue | ¥4829272000000 | ¥10063216000000 | +108.4% |
| Operating income | ¥11381000000 | ¥242903000000 | +2034.3% |
| Operating margin | 0.2% | 2.4% | +2.2 pp |
| Employees | 106,226 people | 138,453 people | +30.3% |
| Cash and equivalents | ¥359465000000 | ¥461262000000 | +28.3% |

### 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 |
| --- | ---: |
| 製鉄 → 製鉄 | 86.8% |
| エンジニアリング → エンジニアリング | 3.6% |
| エンジニアリング → 事業再編・廃止 | 2.2% |
| ケミカル＆マテリアル → ケミカル＆マテリアル | 2.4% |
| ケミカル＆マテリアル → 事業再編・廃止 | 1.2% |
| システムソリューション → システムソリューション | 2.9% |
| システムソリューション → 事業再編・廃止 | 1.0% |
| 新設・再編 → 製鉄 | 4.4% |

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 manufacturing | 5 years | +17.0% | ¥9173227000000 | — | 2 |
| Engineering | 5 years | +5.3% | ¥357517000000 | — | 2 |
| System solution | 5 years | +9.2% | ¥292636000000 | — | 2 |
| Chemicals and materials | 5 years | +6.6% | ¥239835000000 | — | 2 |

## Income statement（FY ending Mar 2026, consolidated, IFRS）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Revenue | 10,063,216 | 100.0% | S100YF8E |
| Cost of revenue | 8,618,408 | 85.6% | S100YF8E |
| Gross profit | 1,444,808 | 14.4% | S100YF8E |
| SG&A | 993,968 | 9.9% | S100YF8E |
| Operating income | 242,903 | 2.4% | S100YF8E |
| Pretax income | 172,814 | 1.7% | S100YF8E |
| Income tax | 128,059 | 1.3% | S100YF8E |
| Net income | 44,754 | 0.4% | S100YF8E |
| Net income attributable to owners | 17,158 | 0.2% | S100YF8E |

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

| Part | JPY |
| --- | ---: |
| Cost of revenue | 86 |
| SG&A | 10 |
| Other operating | 2 |
| Operating income | 2 |
| (Ref.) Net income | 0 |

### Margin funnel

Gross margin 14.4% → Operating margin 2.4% → Net margin 0.2%
Derived from reported figures (DERIVED).

## Revenue and profit pattern

Pattern: Revenue up, profit down
Revenue growth: +15.7%; Core profit growth: -55.7%
Growth quality: revenue-led
Operating leverage (core profit growth ÷ revenue growth): -3.54×
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 | 8,695,526 | 10,063,216 | 1,367,690 | +15.7% |
| Gross profit | 1,371,651 | 1,444,808 | 73,157 | +5.3% |
| Operating income | 547,960 | 242,903 | -305,057 | -55.7% |
| Net income attributable to owners | 350,227 | 17,158 | -333,069 | -95.1% |
| Operating cash flow | 978,593 | 716,939 | -261,654 | -26.7% |
| Free cash flow | 380,655 | -146,237 | -526,892 | -138.4% |

## History（JPY mn）

| Period | Revenue | Op. income | Op. margin | Net income | Op. CF | FCF | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| FY ending Mar 2020 | 5,921,525 | -406,119 | -6.9% | -431,513 | 494,330 | 33,775 | S100LM6X |
| FY ending Mar 2021 | 4,829,272 | 11,381 | 0.2% | -32,432 | 403,185 | -56,626 | S100OCKQ |
| FY ending Mar 2022 | 6,808,890 | 840,901 | 12.4% | 637,321 | 615,635 | 148,733 | S100R2FO |
| FY ending Mar 2023 | 7,975,586 | 883,646 | 11.1% | 694,016 | 661,274 | 191,256 | S100TOAW |
| FY ending Mar 2024 | 8,868,097 | 778,662 | 8.8% | 549,372 | 1,010,159 | 543,814 | S100W3AT |
| FY ending Mar 2025 | 8,695,526 | 547,960 | 6.3% | 350,227 | 978,593 | 380,655 | S100YF8E |
| FY ending Mar 2026 | 10,063,216 | 242,903 | 2.4% | 17,158 | 716,939 | -146,237 | S100YF8E |

## People and productivity（FY ending Mar 2026, consolidated, IFRS）

| Metric | Value |
| --- | ---: |
| Revenue per employee (consolidated) | ¥72.7M |
| Operating income per employee (consolidated) | ¥1.8M |
| Net income per employee (consolidated) | ¥123.9K |

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) | 106,528 | 106,068 | 113,639 | 113,845 | 138,453 |
| Average salary (parent company) | ¥5.4M | ¥8.2M | ¥8.3M | ¥9.1M | ¥9.1M |
| Average age (parent company) | 38.5 years | 39.3 years | 39.9 years | 40.5 years | 41.3 years |
| Average tenure (parent company) | 16.5 years | 17.2 years | 17.6 years | 18.2 years | 19.5 years |

Year over year: Employees (consolidated) +21.6% · Revenue (consolidated) +15.7%

## Segments（FY ending Mar 2026, consolidated, IFRS、JPY mn）

| Segment | Revenue | Share | Op. income | Op. margin |
| --- | ---: | ---: | ---: | ---: |
| Steel manufacturing | 9,173,227 | 91.2% | — | — |
| Engineering | 357,517 | 3.6% | — | — |
| Chemicals and materials | 239,835 | 2.4% | — | — |
| System solution | 292,636 | 2.9% | — | — |

### 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 |
| --- | ---: |
| Steel manufacturing | 91.2% |
| Engineering | 3.6% |
| Chemicals and materials | 2.4% |
| System solution | 2.9% |

Segment → industry: Steel manufacturing → Steel / Chemicals and materials → Chemicals / System solution → IT Services & System Integration / Engineering → Plant Engineering & Building Services

## Revenue by geography

No geographic revenue breakdown was disclosed.

## Cash flow（FY ending Mar 2026, consolidated, IFRS）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Operating cash flow | 716,939 | 7.1% | S100YF8E |
| Capital expenditure | 863,176 | 8.6% | S100YF8E |
| Free cash flow | -146,237 | -1.5% | 算出 |
| Investing cash flow | -2,837,181 | -28.2% | S100YF8E |
| Financing cash flow | 1,886,301 | 18.7% | S100YF8E |
| Dividends paid | 146,480 | 1.5% | S100YF8E |
| Share buyback | 29 | 0.0% | S100YF8E |
| Change in cash | -211,264 | -2.1% | S100YF8E |
| Cash and equivalents | 461,262 | 4.6% | S100YF8E |

## 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 | 551,049 | 670,410 | 448,892 | 672,526 | 461,262 | S100TOAW, S100W3AT, S100YF8E |
| Total assets | 8,752,346 | 9,567,099 | 10,714,627 | 10,942,458 | 14,660,583 | S100R2FO, S100TOAW, S100W3AT, S100YF8E |
| Net assets | 3,897,008 | 4,646,417 | 5,355,878 | 5,903,380 | 6,024,560 | S100TOAW, S100W3AT, S100YF8E |
| Share capital | 419,524 | 419,524 | 419,799 | 569,519 | 569,519 | S100R2FO, S100TOAW, S100W3AT, S100YF8E |
| Property, plant and equipment | 3,052,640 | 3,183,638 | 3,380,436 | 3,635,585 | 5,899,583 | S100R2FO, S100TOAW, S100W3AT, S100YF8E |
| Goodwill | 61,741 | 65,062 | 70,207 | 71,639 | 259,746 | S100R2FO, S100TOAW, S100W3AT, S100YF8E |
| Current assets | 3,514,655 | 4,070,518 | 4,560,384 | 4,548,503 | 5,289,570 | S100R2FO, S100TOAW, S100W3AT, S100YF8E |
| Total liabilities | 4,855,337 | 4,920,682 | 5,358,748 | 5,039,077 | 8,636,023 | S100R2FO, S100TOAW, S100W3AT, S100YF8E |
| Equity attributable to owners of parent | 3,466,799 | 4,181,155 | 4,777,727 | 5,383,311 | 5,530,448 | S100R2FO, S100TOAW, S100W3AT, S100YF8E |
| Retained earnings | 2,514,775 | 3,079,144 | 3,525,585 | 3,819,934 | 3,752,153 | S100R2FO, S100TOAW, S100W3AT, S100YF8E |
| Treasury stock | -57,977 | -58,054 | -58,149 | -58,236 | -59,023 | S100R2FO, S100TOAW, S100W3AT, S100YF8E |

### Assets and funding mix

| Assets | Share | Source |
| --- | ---: | ---: |
| Cash | 3% | S100YF8E |
| Property, plant and equipment | 40% | S100YF8E |
| Intangibles and goodwill | 2% | — |
| Other assets | 55% | S100YF8E |

| Funding source | Share | Source |
| --- | ---: | ---: |
| Other liabilities | 59% | S100YF8E |
| Equity | 41% | S100YF8E |

### 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 | 8,752,346 | 9,567,099 | 10,714,627 | 10,942,458 | 14,660,583 |
| Equity | 3,897,008 | 4,646,417 | 5,355,878 | 5,903,380 | 6,024,560 |
| Interest-bearing debt | — | — | — | — | — |
| Cash | 551,049 | 670,410 | 448,892 | 672,526 | 461,262 |

## 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) | 58.6% | S100YF8E |
| Fixed assets ÷ total assets | 40.2% | S100YF8E |
| Goodwill ÷ parent equity | 4.7% | S100YF8E |

Goodwill over 4 years: 61,741 → 259,746 JPY; total investing cash flow: -4,755,709 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) | 3.1% |
| Cash ÷ revenue | 4.6% |
| Net cash (cash − interest-bearing debt) | — |
| Net debt ÷ operating cash flow | — |
| Cash conversion (operating CF ÷ operating income) | 295.2% |
| Cash vs. profit gap | 699,781 JPY mn (of net income 4078.5%) |
| Shareholder returns / net income | 853.9% |
| Shareholder returns / FCF | — |
| Shareholder payments — dividends / net income | 853.7% |
| Shareholder payments — dividends / FCF | — |
| CapEx intensity (capex ÷ revenue) | 8.6% |
| Investing CF relative to operating CF | 395.7% |

## 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 | 9.4% | 0.78× | 7.3% | 2.52× | 18.4% | S100R2FO |
| 2023 | 8.7% | 0.87× | 7.6% | 2.40× | 18.1% | S100TOAW |
| 2024 | 6.2% | 0.87× | 5.4% | 2.26× | 12.3% | S100W3AT |
| 2025 | 4.0% | 0.80× | 3.2% | 2.13× | 6.9% | S100YF8E |
| 2026 | 0.2% | 0.79× | 0.1% | 2.35× | 0.3% | S100YF8E |

## Ownership

| Counterparty | Relation | Ratio | As of |
| --- | ---: | ---: | ---: |
| 日本マスタートラスト信託銀行㈱（信託口） | Major shareholder | 13.9% | 2026-03-31 |
| ㈱日本カストディ銀行（信託口） | Major shareholder | 4.0% | 2026-03-31 |
| THE CHASE MANHATTAN BANK,N.A. LONDONSECS LENDING OMNIBUS ACCOUNT（常任代理人 ㈱みずほ銀行決済営業部） | Major shareholder | 1.9% | 2026-03-31 |
| 日本生命保険(相)（常任代理人 日本マスタートラスト信託銀行㈱） | Major shareholder | 1.8% | 2026-03-31 |
| JP MORGAN CHASE BANK 385642（常任代理人 ㈱みずほ銀行決済営業部） | Major shareholder | 1.8% | 2026-03-31 |
| JP MORGAN CHASE BANK 385781（常任代理人 ㈱みずほ銀行決済営業部） | Major shareholder | 1.4% | 2026-03-31 |
| STATE STREET BANK AND TRUST COMPANY 505001 （常任代理人 ㈱みずほ銀行決済営業部） | Major shareholder | 1.4% | 2026-03-31 |
| 日本製鉄グループ従業員持株会 | Major shareholder | 1.3% | 2026-03-31 |
| 明治安田生命保険(相)（常任代理人 ㈱日本カストディ銀行） | Major shareholder | 1.3% | 2026-03-31 |
| ㈱みずほ銀行（常任代理人 ㈱日本カストディ銀行） | Major shareholder | 1.1% | 2026-03-31 |

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

- Revenue for the FY ending Mar 2026 was ¥10.1T, up +15.7% from ¥8.7T.
- Profits moved the other way: operating income dropped -55.7% to ¥242.9B, and net income attributable to owners dropped -95.1% to ¥17.2B.
- Operating cash flow fell -26.7% to ¥716.9B, which did not cover ¥863.2B of capital spending, so free cash flow was -¥146.2B.

### Drivers

- U.S. Steel became a consolidated subsidiary, which lifted steel segment revenue
- Cheap exports from Chinese overcapacity kept global steel prices weak; thinner margins and weaker raw-material, overseas and group steel businesses cut steel profits, only partly offset by cost savings
- A loss from business restructuring also weighed on bottom-line profit

### Risks

- Chinese overproduction and tariffs or trade measures could push steel supply, demand and prices further down
- The company says it cannot yet estimate how the Middle East situation will affect results, since it can spread across many industries
- If technology transfer or integration after acquisitions falls behind plan, goodwill could be written down

Cited: Annual securities report (101st 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 (101st term) (事業等のリスク)

## Sources

| Document | ID | Published | URL |
| --- | ---: | ---: | ---: |
| 有価証券報告書－第101期(2025/04/01－2026/03/31) | S100YF8E | 2026-06-23 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100YF8E,, |
| 有価証券報告書－第100期(2024/04/01－2025/03/31) | S100W3AT | 2025-06-24 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100W3AT,, |
| 有価証券報告書－第99期(2023/04/01－2024/03/31) | S100TOAW | 2024-06-21 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100TOAW,, |
| 有価証券報告書－第98期(2022/04/01－2023/03/31) | S100R2FO | 2023-06-23 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100R2FO,, |
| 有価証券報告書－第97期(令和3年4月1日－令和4年3月31日) | S100OCKQ | 2022-06-23 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100OCKQ,, |
| 有価証券報告書－第96期(令和2年4月1日－令和3年3月31日) | S100LM6X | 2021-06-23 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100LM6X,, |

## Key alliances (from the filing's material contracts)

| Partner | Type | Description | Source |
| --- | ---: | ---: | ---: |
| POSCO Holdings Inc. | Alliance | 基礎的技術開発・第三国での合弁事業・IT 等の協力に関する戦略的提携 | S100YF8E |
| 神戸製鋼所 | Alliance | 鉄源設備の共同活用に関する協定 | S100YF8E |
| BlueScope Steel Limited | Joint venture | 東南アジア・米国の建材薄板事業の合弁（NS BlueScope Coated Products） | S100YF8E |
| VALLOUREC Oil & Gas France | Alliance | VAM® に係る事業連携の深化 | S100YF8E |
| ArcelorMittal | Joint venture | インドの鉄源一貫製鉄所の運営に関する合弁（ArcelorMittal Nippon Steel India Limited） | S100YF8E |

## 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).