---
title: "Nippon Steel expects to return to profitability in the current fiscal year without the need to cut production capacity"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/276364219.md"
description: "Nippon Steel stated that the demand for US Steel is growing, and there is no need to cut production capacity, expecting to return to profitability in the fiscal year 2026. Chief Financial Officer Takahiko Iwai pointed out that capital expenditures are yielding results, and US Steel's operations continue to improve, with about 100 employees going to the US to share technology. The new facilities will support performance next year, with the Big River 2 plant nearing full capacity operation, expected to contribute to profits in the next fiscal year. The challenge facing US Steel is that insufficient investment has led to high variable costs. After completing investments over the next four years, it will increase the proportion of high-margin value-added products, improving quality and cost competitiveness"
datetime: "2026-02-19T17:19:08.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/276364219.md)
  - [en](https://longbridge.com/en/news/276364219.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/276364219.md)
---

# Nippon Steel expects to return to profitability in the current fiscal year without the need to cut production capacity

Nippon Steel stated on Thursday that demand for US Steel (X.US) is growing, and there is no need to emulate Japan's significant production cuts from earlier years, nor is there a need to reduce US Steel's production capacity. It is expected that with the rebound in steel prices and technology transfer, it will start contributing profits in the fiscal year 2026, reversing the zero contribution situation of this fiscal year.

Chief Financial Officer Takahiko Iwai mentioned that as capital expenditures take effect, US Steel's operations continue to improve. Nippon Steel has dispatched about 100 employees to the US to share best practices and advanced technologies. He stated that the new facilities will become a performance boost next year, with the Big River 2 plant currently operating near full capacity, and it is expected to contribute throughout the next fiscal year.

Nippon Steel believes that US Steel's biggest challenge is the high variable costs resulting from years of insufficient investment. After completing the planned investments over the next four years, the proportion of high-margin value-added products will increase, significantly improving quality and cost competitiveness

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