Why did Nippon Steel widen its FY2026 loss guidance?

Management cited the Muroran blast furnace outage and weak steel prices as the main drivers. Repairs, logistics, and lost output pressured margins. The guidance also excludes any impact from the US Steel acquisition. A successful restart and better pricing are needed to stabilize profits.

When will the Muroran blast furnace restart?

Management targets a restart by the end of March. This timing is important for restoring shipments and lowering unit costs. Investors should track updates on repair progress, ramp-up speed, and how quickly product mix returns to higher-margin grades after operations resume.

How does the US Steel acquisition factor into guidance?

The FY2026 outlook excludes any contribution from the US Steel acquisition. Funding, timing, and regulatory steps for that transaction are separate from current guidance. Investors should evaluate leverage, interest costs, and synergy potential once the company provides updated financing and integration plans.

Is the dividend sustainable after the guidance cut?

The company paid a ¥76 TTM dividend, implying a high trailing yield near 11%. Sustainability depends on cash flow after Muroran restarts, pricing improvements, and funding decisions around mid-year. Dividend policy may adjust if management prioritizes repairs, capex, or debt service.

Global Market Insights

5401.T Stock Today: February 06 – FY Loss Widens on Muroran Blast

ByHuzaifa Zahoor February 6, 2026February 6, 2026

Nippon Steel earnings are back in focus after the company widened its FY2026 net loss guidance to ¥70 billion, citing the Muroran blast furnace outage and softer steel prices. Shares of 5401.T traded at ¥662.6, down 2.13% today. Management aims to restart the furnace by end-March, while excluding any impact from the US Steel acquisition. Investors in Japan will watch cash flow, margins, and funding plans closely as a June bridge-loan deadline approaches and the next earnings date nears.