YAMATO KOGYO CO.,LTD.
5444・Prime Market・Iron & Steel
鉄鋼事業（日本）
Section steel manufacturing and sales business operated by Yamato Steel, which serves as the domestic mother plant
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (full year) | ¥52,981 million | ¥59,514 million | ↓ |
| Segment profit (operating profit) (full year) | ¥1,494 million | ¥5,961 million | ↓ |
| Segment assets | ¥70,680 million | ¥69,905 million | ↑ |
| Depreciation | ¥3,083 million | ¥2,568 million | ↑ |
Business Details
The domestic steel segment operated by Yamato Steel Co., Ltd. The company manufactures and sells H-beams, Channels, I-beams, Steel Sheet Piles, Checkered H-beams, Shipbuilding Section Steel, Cast Steel Products, Ship Boiler Products, and Heavy Machinery Machined Products. The Himeji Plant is positioned as the group's mother plant, responsible for deploying technology and know-how to overseas sites. Section steel for construction and civil engineering is the mainstay, giving the business a structure whose performance is heavily influenced by demand trends in the domestic construction market.
Recent Overview
Rising scrap steel prices and electricity costs eroded steel margins, leading to a year-on-year decline in both revenue and profit
In FY2026 (ending March 2026), the Steel Business (Japan) segment recorded net sales of ¥52,981 million, down ¥6,533 million year on year, and segment profit of ¥1,494 million, down ¥4,467 million year on year. Amid continued stagnation in section steel demand due to a shortage of construction capacity and persistently high construction costs in the construction industry, rising scrap steel prices driven by yen depreciation, along with soaring electricity and other costs, further deteriorated steel margins. Although the company implemented advance price increases on some products and pursued integrated manufacturing-and-sales efforts to shorten delivery times, these measures were not sufficient to improve profitability. For the next fiscal year, the company expects a year-on-year decline in profit, further affected by a two-month production halt in May and June accompanying the renewal of rolling equipment.
Key Products
Growth Drivers
- Further strengthening of sales through collaboration with the JFE Steel Group on the H-beam business
- Securing orders through integrated manufacturing-and-sales efforts enabling short delivery times
- Improved cost competitiveness and quality through strategic capital investment such as rolling equipment renewal
- Capturing demand from civil engineering-related public works projects (a gradual recovery expected from the second half onward)
- Continued efforts to improve steel margins by raising selling prices
Risks
- Prolonged stagnation in section steel demand due to construction capacity shortages and persistently high construction costs in the construction industry
- Softening of the domestic section steel market due to increased imports of cheap Chinese materials
- Deterioration in steel margins due to rising scrap steel prices and soaring costs such as electricity and logistics
- Loss of production and sales opportunities due to a two-month production halt (May and June) accompanying rolling equipment renewal
- Delayed demand recovery due to structural labor shortages in the domestic construction market
- Risk of a downturn in construction activity against the backdrop of escalating tensions in the Middle East
Last updated: June 25, 2026