Kansai Paint (4613) Q1 2026 earnings summary

Executive summary

• Annual dividend forecast raised from 56 yen to 110 yen, doubling shareholder returns.

• 1Q FY2025/FY2026 results in line with plan but showed declines in sales and profits due to higher fixed costs and FX impacts.

• New initiatives under the 18MTP and leadership reshuffles in India and Europe underway.

• No large-scale M&A planned during the 18MTP period.

• Ordinary income and net income fell sharply year-over-year, mainly due to lower FX gains and increased costs.

Financial highlights

• 1Q FY2025/FY2026 net sales: ¥144.7B, down 0.5% YoY; operating income: ¥12.2B, down 19.0% YoY.

• EBITDA: ¥20.2B, down 12.3% YoY; net income: ¥8.5B, down 28.6% YoY.

• EPS: ¥48.13, down 16.2% YoY; adjusted ROE: 14.8%.

• Comprehensive income turned negative at ¥(6,844) million, compared to ¥28,167 million prior year.

• Total assets: ¥744.9B; shareholders' equity ratio: 34.9% at end-1Q FY2025/FY2026.

Outlook and guidance

• FY2025/FY2026 full-year net sales forecast: ¥600B; operating income: ¥54B; EBITDA: ¥86B.

• Net income forecast at ¥36B, down 6% YoY; EPS expected at ¥204.29.

• Dividend payout ratio forecast to rise to 59.6%, prioritizing dividends amid social uncertainty.

• Focus on profitability improvement and risk mitigation for potential downside.

• Dividend forecast revised to ¥110 per share for FY2026.