Mitsubishi Steel Mfg. Co., Ltd.
5632・Prime Market・Iron & Steel
Business
Mitsubishi Steel Mfg., originating from one of Japan's oldest springs manufacturers founded in 1904, is a comprehensive special steel group that manufactures and sells products domestically and internationally centered on four businesses: Special Steel Products, Springs, Metal Forming Materials, and Machinery & Equipment. With a group structure of 22 companies including 17 subsidiaries and 5 affiliated companies, it supplies materials, parts, and machinery to a wide range of industries including automobiles, construction machinery, defense, and energy. Domestically, it operates manufacturing bases in Muroran, Nagasaki, Chiba, and other locations, while overseas it has developed a global production network spanning Indonesia, Canada, the United States, India, China, Thailand, the Philippines, and other countries. Of its net sales of ¥154,557 million (FY2026 (ending March 2026)), the Springs Business forms the largest segment at ¥76,203 million, and the company has positioned the security and energy fields as new growth pillars.
Business Model
With Special Steel Products as its core business, the company supplies domestic and overseas customers while diversifying earnings by manufacturing and selling value-added products across the Springs, Metal Forming Materials, and Machinery & Equipment businesses. Under capital efficiency management centered on ROIC, the company is proceeding with the restructuring of unprofitable businesses (Springs subsidiaries in Germany and Mexico) and concentrating resources on strategic businesses (precision components, soft magnetic powder, and Protective Equipment) in order to transform its profit structure. Capital expenditure of ¥4,795 million was carried out in FY2026 (ending March 2026), allocated to expanding production capacity in growth areas.
Company Strengths
With PT.MSM INDONESIA and PT.JATIM TAMAN STEEL MFG. in Indonesia, the company has established its position as the only special steel manufacturer in ASEAN. It is expanding sales of high-quality materials and increasing adoption by both Japanese and local customers in the ASEAN and Indian markets, where local procurement is advancing, and achieved higher profits in FY2026 (ending March 2026) through increased volume and improved selling price cost structure.
Precision spring parts (a strategic business) began contributing to earnings from the previous medium-term management plan period following the start of mass production of large-scale projects, and the Springs Business recorded operating profit of ¥3,981 million (up 98.5% year on year) in FY2026 (ending March 2026), a significant increase. In the Machinery & Equipment Business, strong orders for protective equipment and overseas power equipment led to net sales of ¥11,771 million (up 12.6% year on year) and operating profit of ¥890 million (up 25.6% year on year), and the company is expanding its business foundation, including a decision to build a new plant for the first time since 1994.
The company has manufacturing subsidiaries in Canada, the United States, India, China, Thailand, the Philippines, and Indonesia, and has concluded multiple technical assistance agreements (extending to as late as 2029) for Indonesia and India. Research and development functions for each segment are consolidated at the Technology Development Center, and R&D expenses in FY2026 (ending March 2026) totaled ¥1,598 million. An integrated R&D structure spanning from materials to finished products underpins the company's differentiation from competitors.
ENVALITH's Perspective
Performance Trend
In FY2026 (ending March 2026), net sales were ¥154,557 million (down 3.1% year on year) and operating profit was ¥4,788 million (down 27.0% year on year), representing a decline in both revenue and profit. The main causes were a decrease in volume and deterioration in productivity in the Special Steel Products Business due to a blast furnace trouble and fire accident at the Muroran complex. On the other hand, thanks to a significant increase in profit in the Springs Business (operating profit up 98.5% year on year) and a reversal in income tax adjustments (¥-612 million), profit attributable to owners of parent secured an increase to ¥3,055 million (up 29.3% year on year). Looking at the past five fiscal periods, after recording a net loss of ¥969 million in FY2024, net income has been on a recovery trend in FY2025 and FY2026. As external factors, sluggish demand for construction machinery and adjustments in automobile production weighed down sales, while demand related to security and energy remained firm. For FY2027 (ending March 2027), an increase in both revenue and profit (net sales of ¥166,000 million, operating profit of ¥6,400 million) is forecast, mainly due to the recovery of the Special Steel Products Business following the restart of the blast furnace.
Growth Strategy
Expansion of the strategic business revenue ratio and normalization of Special Steel Products business profitability through blast furnace restart
The strategic business, including Precision Springs & Precision Press Products, achieved a significant profit increase in FY2026 (ending March 2026). Capital expenditure of ¥1,618 million was invested to enhance production capacity. Sales to North America and Asia are expanding rapidly, and the company is making steady progress toward its medium-term target of achieving a 50% strategic business revenue ratio by 2030.
The blast furnace, which had been halted due to blast furnace and hot blast stove trouble in September and December 2025, was restarted in April 2026. As stable operation and order normalization require a certain period of time, improvement in the first quarter of FY2027 (ending March 2027) will be limited, but profit recovery is expected from the second quarter onward. An incident-related loss of ¥900 million has already been recorded as an extraordinary loss.
Backed by strong orders for Protective Equipment, Overseas Power Equipment, Forging Machinery, and other products, the Machinery & Equipment Business achieved net sales of ¥11,771 million (up 12.6% year on year) in FY2026 (ending March 2026). While incorporating external factors such as increased government defense budgets and energy policy, the company continues to make concentrated investments (capital expenditure of ¥1,234 million) in growth areas leveraging its own product technology and order base.
The Indonesia overseas business achieved a profit increase in FY2026 (ending March 2026) through higher sales volume and improved selling price and cost structure. Although net sales remained flat year on year due to foreign exchange effects, progress was made in strengthening the profitability structure by lowering the break-even point. The company continues to make phased capacity enhancement investments in anticipation of medium- to long-term growth in steel product demand in Southeast Asia.
In FY2026 (ending March 2026), interest-bearing debt was reduced by ¥7,607 million, from ¥51,012 million to ¥43,405 million. The equity ratio improved to 34.4%, and net assets per share rose to ¥3,219.51. The annual dividend was increased to ¥81 (from ¥64 in the previous fiscal year), and ¥104 is forecast for FY2027 (ending March 2027). Shareholder returns are being strengthened while maintaining a dividend payout ratio of approximately 40%.
Last updated: July 19, 2026