Acquisition costs weigh heavy as Japan’s top steelmaker eyes long-term US growth

Nippon Steel Projects Annual Loss After US Steel Deal; Posts ¥195.8B Q1 Loss

Nippon Steel has forecast a ¥40 billion ($266 million) annual loss for FY2025, reversing its earlier profit projection of ¥200 billion, largely due to one-off charges from its $14.9 billion acquisition of US Steel. The deal, finalised in June after 18 months of regulatory scrutiny, included a ¥231.5 billion loss from transferring its 50% stake in AM/NS Calvert to ArcelorMittal. Despite near-term setbacks, Nippon expects US Steel to contribute ¥80 billion to profits this year and ¥150 billion in FY2026, with potential reaching ¥250 billion post-2028, driven by synergies and high-value product expansion. For Q1 FY2025, the company reported a ¥195.8 billion net loss, significantly wider than expected. A 5-for-1 stock split is scheduled for October 1. S&P recently downgraded Nippon Steel’s credit rating to BBB, citing financial strain. The company plans to integrate US Steel’s strategy into its mid-term roadmap later this year, targeting long-term global competitiveness.