JFE Holdings, Inc.
5411・Prime Market・Iron & Steel
Business
JFE Holdings is a pure holding company overseeing three operating companies: JFE Steel Corporation (an integrated steelmaker), JFE Engineering Corporation (infrastructure and environmental engineering), and JFE Shoji Corporation (a trading company handling steel products, nonferrous metals, etc.). The company was established in 2002 through the business integration of NKK Corporation and Kawasaki Steel Corporation. Centered on its Steel Business, the group operates an Engineering Business in the energy, environment, and infrastructure fields, as well as a Trading Business leveraging a global supply chain, broadly supporting industrial and social infrastructure both domestically and internationally. Consolidated revenue for FY2025 was ¥4,539,270 million.
Business Model
In the Steel Business, the company manufactures and sells high-value-added products such as electrical steel sheets, high-tensile steel sheets for automobiles, and thick plates for offshore wind power, aiming to improve profit per ton of product. The Trading Business handles steel processing and sales through a global supply chain in cooperation with JFE Steel, while the Engineering Business builds up a stable order backlog through integrated services ranging from EPC (engineering, procurement, and construction) to O&M (operation and maintenance). Synergies among these three businesses form the earnings base.
Company Strengths
JFE Steel Corporation achieved TMCP development of thick steel plates up to 130mm in thickness for offshore wind power (with performance evaluation completed by the Ministry of Economy, Trade and Industry), and developed parts integration technology for 1470MPa-class ultra-high tensile strength steel plates, among other achievements. In FY2025, the company received multiple awards including the Minister of Economy, Trade and Industry Award (Monodzukuri Nippon Grand Award, Energy Conservation Grand Prize), the Minister of Education, Culture, Sports, Science and Technology Award, and the Okochi Memorial Technology Prize, with its high level of technological capability objectively evaluated by third-party organizations.
JFE Engineering Corporation's FY2025 order intake was ¥836,182 million (+44.3% YoY), and its order backlog was ¥1,223,567 million (+23.0% YoY), both marking record highs. Expanding orders in the three fields of Waste to Resource, Carbon Neutrality, and core infrastructure are enhancing the visibility of future earnings, while operation-type businesses such as PPP/PFI are forming a stable earnings base.
Based on the strategic comprehensive alliance with JSW Steel, the joint venture for the integrated steelworks in Odisha State, India was completed in March 2026 (crude steel production capacity of 4.5 million tons, with plans to expand to a scale of 15 million tons in the future). The company holds numerous joint venture and technology licensing agreements with California Steel Industries in the U.S. (a joint venture with Nucor), as well as in Thailand, Vietnam, China, the UAE, and elsewhere, building a global manufacturing and sales network that would be difficult for other companies to replicate in a short period of time.
ENVALITH's Perspective
Performance Trend
Revenue peaked at ¥5,268,794 million in FY2023 and has declined for three consecutive periods, reaching ¥4,539,270 million in FY2026 (ending March 2026) (down 6.6% year-on-year). Operating profit fell sharply from ¥400,192 million in FY2022 to ¥112,203 million in FY2026 (ending March 2026). Profit attributable to owners of the parent came to ¥70,165 million (down 23.6% from ¥91,867 million in the previous period). External factors—including the slowdown in the Chinese economy, U.S. trade policy, and sluggish overseas steel market conditions—continued, and steel demand remained weak both domestically and overseas. On the other hand, the Engineering Business achieved higher revenue and profit, with revenue of ¥599,773 million (up 5.3% year-on-year) and segment profit of ¥23,972 million. Consolidated crude steel production in FY2026 (ending March 2026) was 22.55 million tons, down from the previous period. Business profit was maintained at roughly the same level as the previous period at ¥135,385 million, but due to one-time factors such as a decrease in gains from land sales, profit before tax declined sharply to ¥87,417 million (down 39.4% from ¥144,315 million in the previous period).
Growth Strategy
Rebuilding the earnings base through a shift to high-value-added products, streamlining domestic production, and expanding into overseas growth markets such as India
Promoting the expansion of the sales ratio of high-value-added products such as electrical steel sheets and heavy plates for wind power, along with raising steel product sales prices. The FY2027 (ending March 2027) target for Steel segment profit is over ¥100,000 million (a significant improvement from the FY2026 (ending March 2026) actual result of ¥38,022 million). The plan also factors in one-time items such as cost reductions and inventory valuation differences.
The investment in and joint venture (JJSL) with BPSL, a subsidiary of JSW Steel, was completed in March 2026. The investment structure consists of JFE Steel at 50% and JSW at 50%, with the Company's investment amount at approximately ¥270.0 billion. The second tranche (25% investment, approximately ¥135.0 billion) is planned for around June 2026. BPSL's current crude steel production capacity is 4.5 million tons, with plans to expand to a scale of 10 million tons by 2030.
Optimizing domestic crude steel production capacity to approximately 21 million tons in FY2027, with plans to bring an innovative electric arc furnace into operation in FY2028. In FY2026 (ending March 2026), removal costs related to GX facility construction of ¥5,464 million were recorded, as structural transformation continues to be promoted. The aim is to develop carbon neutrality technologies and capture demand for green steel.
Expanding orders across three fields: Waste to Resource, Carbon Neutrality, and Core Infrastructure. FY2025 order intake reached a record high of ¥836,100 million (up 44.3% year on year), with an order backlog of ¥1,223,500 million. The FY2027 (ending March 2027) segment profit outlook is ¥25,000 million (roughly the same level as the FY2026 (ending March 2026) actual result of ¥23,972 million).
In addition to earnings contribution from Studco, a North American company acquired in May 2024, promoting the capture of steel demand in growth markets such as India and North America. For FY2027 (ending March 2027), earnings improvement is expected from a recovery in the Americas business toward the second half of the fiscal year and rising domestic steel unit prices, with the segment profit target set at ¥45,000 million (an increase from the FY2026 (ending March 2026) actual result of ¥40,202 million).
Last updated: July 19, 2026