Nippon Steel raised its fiscal 2026 profit forecast by 52% Thursday, citing stronger-than-expected earnings from U.S. Steel and higher steel prices in the United States.

Japan's largest steelmaker now expects net profit of 440 billion yen, about $2.8 billion, for the year ending in March 2027. Its previous forecast was 290 billion yen.

The company expects U.S. Steel, including its Slovak subsidiary, to contribute at least 230 billion yen to full-year underlying business profit. That is 50 billion yen above the earlier forecast. Nippon Steel said favorable supply-and-demand conditions and efforts to improve operations supported the increase.

For the six months through September, Nippon Steel recorded net profit of 263 billion yen, compared with a 113 billion yen loss a year earlier. Revenue rose 26% to 5.84 trillion yen, according to the company's results.

Nippon Steel also projected 770 billion yen in underlying business profit for the full year, including 390 billion yen from overseas operations. The company said U.S. Steel would lead group earnings, while stronger raw-material prices were also expected to help.

A one-time gain tied to an Arkansas state tax credit for capital investment contributed to the revised outlook. The company maintained its annual dividend forecast.

The results give an early view of U.S. Steel's contribution since Nippon Steel completed its acquisition of the American producer. Nippon Steel Chief Financial Officer Takahiko Iwai told reporters that U.S. Steel was the main driver of the revision and said improved market conditions and higher operating rates contributed to the earnings gains.

For the U.S. steel industry, the outlook points to the effect of firm domestic prices and continued investment at U.S. Steel facilities. Steel demand and pricing can affect construction, automotive manufacturing, energy projects and other industrial sectors, but the forecast remains subject to changes in demand, trade policy, raw-material costs and plant performance.

Nippon Steel did not base the revision solely on tariffs. The company said the strength of the U.S. economy also supported steel prices.

Sources: - Nippon Steel, fiscal 2026 second-quarter results and forecast materials: https://www.nipponsteel.com/en/ir/library/settlement/pdf/20261105_200.pdf - Reuters: https://www.reuters.com/world/asia-pacific/nippon-steel-raises-fy26-profit-forecast-by-52-robust-us-steel-earnings-2026-11-05/ - Nippon Steel investor relations calendar: https://www.nipponsteel.com/en/ir/calendar/