3Q performance summary
Despite growth in the strategic business of precision spring components and strong orders in the machinery business, net sales were down YoY. Contributing factors included lower sales volumes associated with lower demand in the steel bars business in Japan, blast furnace issues at the Muroran Works and lower selling prices traceable to falling raw material prices.
Operating income declined YoY. Contributing factors included lower demand in the steel bars business in Japan and lower productivity associated with lower sales volumes due to blast furnace issues at the Muroran Works. However, positive performance in strategic and other businesses contributed to earnings.
Net income were flat YoY, due mainly to lower non-operating expenses and the resolution of the previous period's extraordinary losses on our withdrawal from the German springs business and loss on litigation at the North American subsidiary.
(JPY100M)
FY2024 3Q results | FY2025 3Q results | YoY change | |
Net sales | 1,196 | 1,165 |
31 |
Operating income | 50 | 29 |
21 |
Ordinary income | 41 | 23 |
18 |
Net income attributable to owners of parent company | 10 | 10 | 0 |
Factors contributing to changes in net sales and operating income
Net sales
Including △31 in volume under contract
Including removal of the German springs business from consolidation.
(JPY100M)
Other
FY2025 3Q
results
FY2024 3Q
results
Selling prices
Sales volumes
Foreign exchange gains/losses
Operating income
Sales
volumes
Selling
prices
Raw
material prices (market-related)
Raw
material prices
(non-market-related) *
Production
costs and fixed costs
FY2024 3Q
results
FY2025 3Q
results
Inventory valuation, etc.
(JPY100M)
* Hot metal costs of blast furnaces jointly operated with Nippon Steel Corporation due to causes not including raw materials market prices (including exchange-rate fluctuations) but including operating ratios at the Muroran Works overall and effects of blast furnace issues
Results by segment
Income fell sharply in the steel bars business in Japan. The Springs Business and The overseas steel bars, however, showed YoY income growth. Formed & Fabricated Products, and Machinery businesses all trended favorably.
(JPY100M)
FY2024 3Q results | FY2025 3Q results | YoY change | ||
Special Steel Bars | Net sales | 616 | 501 |
115 |
Operating income | 31 | 8 |
39 | |
Springs | Net sales | 502 | 570 | 68 |
Operating income | 12 | 27 | 15 | |
Formed & Fabricated Products | Net sales | 69 | 70 | 1 |
Operating income | 3 | 4 | 1 | |
Machinery | Net sales | 65 | 80 | 15 |
Operating income | 3 | 5 | 2 | |
Other | Net sales | 28 | 28 | 0 |
Operating income | 1 | 1 | 0 | |
Consolidation adjustments | Net sales |
83 | 84 | |
Operating income | 0 | 0 | 0 | |
Total | Net sales | 1,196 | 1,165 |
31 |
Operating income | 50 | 29 |
21 | |
Special Steel Bars
Net sales (decreased)
[Domestic] (decreased):
Lower demand and a decline in sales caused by blast furnace issues at the Muroran Works
Lower selling prices traceable to falling raw material prices
[Overseas (Indonesia)] (increased):
Increase in sales due to sales price improvement
Operating loss (decreased)
[Domestic] (operating loss):
Lower overall productivity at the Muroran Works caused by a decline in sales volumes
Lower operating rates caused by blast furnace issues
[Overseas (Indonesia)] (increased):
Sales price and production cost improvements
Springs business
business (JPY100M) | |||
FY2024 3Q | FY2025 3Q | YoY | |
Net sales | 616 | 501 |
115 |
Operating income | 31 | 8 |
39 |
Domestic steel bar sales volume (cumulative) *Company | |
FY2024 3Q | 254 Kt |
FY2025 3Q | 210 Kt |
Results by segment (Special Steel Bars, Springs)
Net sales (increased)
Sales volumes were up in precision spring components and in the springs business in Japan
Operating income (increased)
Higher sales volumes in precision spring components and other businesses
(JPY100M) | |||
FY2024 3Q | FY2025 3Q | YoY | |
Net sales | 502 | 570 | 68 |
Operating income | 12 | 27 | 15 |
Formed & Fabricated Products business
Machinery business
Net sales (flat)
Higher sales of special alloy powders and precision castings
Sales volumes other products decreased
Operating income (increased)
Improved sales price and production costs in precision castings.
A time lag arose in reflecting in selling prices the rising costs of alloy raw materials for special alloy powders.
Net sales (increased)
Higher sales of defense equipment, overseas power machinery, forging machinery, and other products, backed by strong orders received in fields such as security and energy
Operating income (increased)
Higher sales and improved production costs on various products
Results by segment (Formed & Fabricated Products, Machinery)
(JPY100M) | |||
FY2024 3Q | FY2025 3Q | YoY | |
Net sales | 69 | 70 | 1 |
Operating income | 3 | 4 | 1 |
(JPY100M) | |||
FY2024 3Q | FY2025 3Q | YoY | |
Net sales | 65 | 80 | 15 |
Operating income | 3 | 5 | 2 |
Impact of non-operating income/loss and extraordinary income/loss
Non-operating income/loss improved due to lower interest payments as debts decreased.
Extraordinary income/loss improved significantly for various reasons, including the resolution of the previous period's extraordinary losses on our withdrawal from the German springs business and loss on litigation at the North American subsidiary.
Exchange rate | (JPY100M) | ||||||
Mar. 31, 2024 | JPY151 | Mar. 31, 2025 | JPY150 | FY2024 3Q results | FY2025 3Q results | YoY change | |
Dec. 31, 2024 | JPY158 | Dec. 31, 2025 | JPY157 | ||||
Operating income | 50 | 29 |
21 | ||||
Non-operating income/loss |
9 |
6 | 3 | ||||
Translation (exchange profit and loss) | 1 | 1 | 0 | ||||
Interest paid |
11 |
9 | 2 | ||||
Ordinary income | 41 | 23 |
18 | ||||
Extraordinary income/loss |
16 | 1 | 17 | ||||
Insurance income | 2 |
2 | |||||
Gain on sales of investment securities | 1 | 1 | |||||
Loss on business liquidation* |
11 | 0 | 11 | ||||
Loss on litigation* |
7 | 7 | |||||
Net income before income taxes and other adjustments | 25 | 24 |
1 | ||||
Tax expenses |
13 |
10 | 3 | ||||
Net income attributable to non-controlling interests |
2 |
4 |
2 | ||||
Net income attributable to owners of parent company | 10 | 10 | 0 | ||||
Summary of full-year forecasts of results
Forecasts of consolidated financial results for the fiscal year ending March 2026 remain unchanged from the forecasts announced previously on November 6, 2025.
On the other hand, on December 1st, 2025, a fire accident occurred at the blast furnace ancillary facilities at Muroran Works. a certain degree of impact on the steel bars business in Japan is expected.
The financial impact of this incident is currently under close examination. If significant impacts are anticipated, we will provide prompt notice.
Also, the dividend for the fiscal year ending March 2026 remains also unchanged at the minimum level (80 yen per share).
FY2024 results | YoY change | ||||
1H Result | 2H Forecast | Full-year | |||
Net sales | 1,596 | 799 | 791 | 1,590 |
6 |
Operating income | 66 | 21 | 23 | 44 |
22 |
Ordinary income | 49 | 14 | 16 | 30 |
19 |
Net income attributable to owners of parent company | 24 | 7 | 18 | 25 | 1 |
Dividends (JPY/share) | 64.0 | 40.0 | 40.0 | 80.0 | 16.0 |
About the fire accident at Muroran Works
About the accident
MSM operates a blast furnace owned by Hokkai Iron & Coke Corp. in the North Nippon Works Muroran Area of Nippon Steel Corporation in cooperation with Nippon Steel Corporation.
About Hokkai Iron & Coke Corp.
Ownership stakes: Nippon Steel Corp. 80%, Our company 20% Operations are entrusted to Nippon Steel Corp.
Mitsubishi Steel Muroran Inc.(MSR), the domestic production base for the Group's Special Steel Bars business, produces special steel products mainly from hot metal from the blast furnace supplied by Hokkai Iron & Coke Corp.
On December 1, 2025, equipment damage and fire occurred at the hot-blast stove, an ancillary facility of Hokkai Iron & Coke Corp.'s blast furnace, halting its operation.
Blast furnace hot-metal supply suspension impacts MSR's production volume.
The current situation and Outlook
At MSR, although the supply of hot metal from the blast furnace is currently halted, we continue the production of special steel and supply to our customers by utilizing the capacity for sourcing raw materials in the Muroran area and various networks to procure alternative resources.
Regarding the recovery status of Hokkai Iron & Coke Corp, the supplier of hot metal from the blast furnace, we are continuing to work with Nippon Steel Corp., the main operator, to investigate the cause and proceed with recovery work, while also organizing the handling of these additional costs, and are aiming to resume operations by the end of March this year.
Performance except Steel bars business in Japan is generally progressing according to plan or at levels above expectations. It is anticipated that with the resolution of the blast furnace issue in the next fiscal year, there will be an improvement in results.
Note on forward-looking statements
These materials are meant solely to provide investors with information and are not to be interpreted as solicitations. The forecasts provided in these materials are based on targets and projections and do not constitute promises or guarantees of future performance. Please refer to this information with the understanding that the Company's future performance may differ from this business outlook. While these earnings materials were prepared based on data believed to be reliable, we cannot guarantee their accuracy or reliability. The Company assumes no liability for these materials, regardless of the purpose for which they are used by investors. We encourage all investors to make their final investment decisions based on their own judgment.