Tokyo Steel has moved its full-year operating forecast from a ¥4bn loss to a ¥1bn profit. In a revision to guidance dated October 16, 2026, the steelmaker also lifted its net income forecast to ¥7.0bn from ¥1.0bn. All figures are non-consolidated forecasts for the year ending March 2027, not reported results.
What moved operating profit
The company gives two reasons for the better operating line in the April-September period. Product shipment prices rose as it had assumed, and the purchase price of iron scrap, its main raw material, came in below its assumption. The notice gives no figure for either effect.
For the interim period, the operating loss forecast narrows to ¥3.5bn from ¥4.0bn, while sales are forecast at ¥150.4bn, down from ¥155.0bn. The company still expects an interim loss at the operating and ordinary levels. Last year's interim operating profit was ¥6.045bn.
For the full year, the company says the price revisions it has carried out will feed into shipment prices in turn, and on that basis it expects operating profit to turn positive. Sales are now forecast at ¥326.0bn, up from ¥315.0bn. Ordinary profit is forecast at ¥2.0bn, against a prior forecast loss of ¥2.5bn. With an interim operating loss forecast, the second half has to carry the full-year profit.
| Item | July forecast | Revised forecast | Prior year |
|---|---|---|---|
| Sales | ¥315.0bn | ¥326.0bn | ¥268.095bn |
| Operating profit | ¥4.0bn loss | ¥1.0bn profit | ¥7.23bn profit |
| Ordinary profit | ¥2.5bn loss | ¥2.0bn profit | ¥8.632bn profit |
| Net income | ¥1.0bn | ¥7.0bn | ¥11.557bn |
| Net income per share | ¥9.81 | ¥69.28 | ¥112.56 |
Net income rests on asset sales
The net income lift comes from a different source. The company says its asset sales have progressed, which improves interim net income against plan. The interim net income forecast rises to ¥2.25bn from ¥1.0bn, or ¥22.09 per share from ¥9.81. The notice names no assets and gives no sale proceeds or gains.
The full-year net income forecast of ¥7.0bn, or ¥69.28 per share, is below last year's ¥11.557bn. The notice gives no separate explanation for the full-year net figure beyond the interim asset sales and the operating improvement. A profit of ¥1.0bn at the operating level is thin against a ¥7.0bn net result, so the two lines should not be read as one improvement.
Management's stance and the caveat
Tokyo Steel says it will keep prioritising profitability. It also plans to build a setup that responds quickly and flexibly to domestic and overseas product supply and demand and to raw material conditions, and to cut the amount of raw materials used in production.
The company warns that the forecasts rest on information available on the release date and carry uncertainty. It says actual results could vary significantly with iron scrap prices and steel market conditions. Scrap prices that helped the interim period are one of the two variables that could move the full-year numbers.