Japan’s JFE Holdings, the nation’s second-largest steelmaker, has announced a significant 74% year-on-year decline in net profit for the quarter ending June 30, 2025. The company posted a net profit of ¥7.1 billion (approximately US $48 million), falling well short of analyst expectations of ¥16.1 billion.
The sharp drop in profitability was driven by several factors, including a decrease in crude steel production to 5.28 million tonnes from 5.48 million tonnes during the same period last year. Additionally, JFE faced weakened export margins and adverse effects from foreign exchange fluctuations, which further pressured earnings.
Despite the disappointing quarterly results, JFE Holdings maintained its full-year profit forecast of ÂĄ75 billion, signaling confidence in a recovery in the latter half of the fiscal year.
In a strategic move, the company also confirmed a ¥120 billion (approximately US $900 million) joint investment with India’s JSW Steel. This partnership aims to expand production of cold-rolled grain-oriented electrical steel (CRGO) at two manufacturing sites in India. One facility’s output capacity is set to increase substantially from 50,000 to 350,000 tonnes annually, with full-scale operations expected by 2027.
This expansion is designed to capitalize on the growing demand for energy-efficient steel products, particularly in sectors such as transformers, data centers, and renewable energy infrastructure, aligning with global trends toward sustainability and energy transition.
