AICHI STEEL CORPORATION
5482・Prime Market・Iron & Steel
Hagane (Steel) Company
The core segment of Aichi Steel responsible for manufacturing and sales of Special Steel (Hot Rolled Products)
| Period | Current | Previous | Change |
|---|---|---|---|
| Revenue from external customers | ¥105,567 million | ¥106,768 million | ↓ |
| Segment total revenue (including internal) | ¥146,363 million | ¥147,407 million | ↓ |
| Segment profit (operating income) | ¥8,160 million | ¥5,352 million | ↑ |
| Share of consolidated revenue | 34.7% | 35.7% | ↓ |
| Sales volume (non-consolidated) | 693 thousand tons | 674 thousand tons | ↑ |
Business Details
Manufactures and sells Special Steel (Hot Rolled Products), while Aichi Ceratech Co., Ltd. and Omi Mining Co., Ltd. produce Steelmaking Materials, and Aichi Logistics Co., Ltd. handles Steel Products Transportation & Storage Services. Major customers are Toyota Group-related companies such as Toyota Motor Corporation and Toyota Tsusho Corporation. Its strength lies in resource-recycling manufacturing using electric furnaces, supplying special steel mainly for automotive use as well as for industrial and construction machinery. This core segment accounts for approximately 35% of consolidated revenue.
Recent Overview
Revenue declined due to price drops despite higher sales volume; profit improved significantly due to cost reduction
In FY2026 (ending March 2026), sales volume of special steel increased to 693 thousand tons (+19 thousand tons, +2.9% year-on-year), but revenue from external customers decreased to ¥105,567 million (down ¥1,201 million, -1.1% year-on-year) due to lower selling prices. On the other hand, lower prices for purchased materials such as iron scrap and factory cost reduction efforts were effective, resulting in a significant increase in segment profit to ¥8,160 million (up ¥2,808 million, +52.5% year-on-year).
Key Products
Growth Drivers
- Cost reduction effect from lower prices of purchased materials such as iron scrap and purchased billets
- Improved profitability through factory cost reduction activities (thorough implementation of TPS, etc.)
- Increase in special steel sales volume (693 thousand tons in FY2026 (ending March 2026), +2.9% year-on-year)
- Achieving overwhelming quality, cost, and delivery through the construction of a next-generation steelmaking process (medium-term management plan)
- Capturing new demand through the expansion of resource-recycling manufacturing into the Global South (India) market
- Continued volume expansion expected, with projected sales volume of 716 thousand tons in FY2027 (ending March 2027) (+3.2% year-on-year)
Risks
- Risk of declining selling prices for special steel (price declines continued to weigh on revenue in FY2026 (ending March 2026) as well)
- Risk of demand fluctuations in the automotive industry, the main customer base (impact of BEV shift and US tariff policy)
- Risk of rising prices for raw materials such as iron scrap (fluctuations in purchased material prices directly affect profit)
- Delayed recovery in demand for industrial and construction machinery due to sluggish Chinese economy
- Risk of production adjustments by automakers due to additional tariffs imposed by the Trump administration
Last updated: June 29, 2026