Focus: Second Quarter 2025 U.S. Stock Earnings

Nippon Steel on Friday revised its full-year earnings forecast from a previously expected profit of 200 billion yen to a loss of 40 billion yen (approximately $266 million), partly due to costs related to its acquisition of U.S. Steel.

In June this year, Japan's largest steelmaker Nippon Steel completed its $14.9 billion acquisition of U.S. Steel. The deal required 18 months of efforts to obtain U.S. government approval, during which it faced rigorous scrutiny over national security concerns.

Nippon Steel stated that its full-year performance will be impacted by one-time losses related to the U.S. Steel transaction, particularly a 231.5 billion yen loss from transferring its 50% stake in the AM/NS Calvert joint venture to partner ArcelorMittal, along with other factors.

On Friday, Nippon Steel reported a loss of 195.83 billion yen for the three months ended June 30, exceeding analyst expectations.

A survey of analysts by London Stock Exchange Group (LSEG) had projected Nippon Steel's quarterly loss at 25.7 billion yen. In the same period last year, the company reported a quarterly net profit of 157.56 billion yen.

Nippon Steel also decided to conduct a stock split at a ratio of 1-to-5, effective October 1.

Last month, global rating agency Standard & Poor's (S&P) downgraded Nippon Steel's credit rating from "BBB+" to "BBB" with a "negative" outlook, citing increasing financial pressure on the Japanese steelmaker following its acquisition of U.S. Steel.