Nippon Paint (4612) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 revenue of ¥490.3 billion, up 20.8% year-over-year, with adjusted operating profit of ¥76.4 billion and margin at 15.6%, driven by M&A, FX, volume, and product mix improvements.

• Adjusted EPS rose to ¥24.2, a record high for Q1, while reported EPS increased to ¥22.2.

• Growth was broad-based across Japan, NIPSEA, DuluxGroup, and Americas, with AOC contributing significantly.

• Despite global uncertainties and raw material cost increases, proactive cost controls and price pass-through are expected to offset headwinds.

• Comprehensive income reached ¥128,944 million, reversing a prior-year loss.

Financial highlights

• Gross profit increased 24.6% year-over-year to ¥215.0 billion, with gross margin improving to 43.9%.

• Adjusted profit attributable to owners rose 29.2% year-over-year.

• Basic and diluted EPS for Q1 2026 were ¥22.18, up from ¥15.20 in Q1 2025.

• Total assets as of March 31, 2026, were ¥4,140,764 million, with equity attributable to owners at ¥1,902,474 million (45.9% of total assets).

• Net cash provided by operating activities for Q1 2026 was ¥15,454 million.

Outlook and guidance

• Full-year 2026 revenue forecast is ¥1,920,000 million, up 8.2% year-over-year, with operating profit forecast at ¥283,000 million.

• Full-year guidance remains achievable despite raw material cost increases and FX volatility, with cost reduction and price pass-through expected to offset headwinds.

• Margin expected to fluctuate quarter-to-quarter due to raw material cost impacts, especially from Q2 onward.

• Dividend forecast for 2026 is ¥17.00 per share, unchanged from previous guidance.

• Updated outlook to be provided in Q2 as market conditions evolve.