Kansai Paint (4613) Q2 2026 earnings summary

Executive summary

• Net sales for the six months ended September 30, 2025, were ¥289.2B, down 1.6% year-over-year, reflecting challenging global economic conditions and increased fixed costs.

• Operating profit declined 7.6% year-over-year to ¥24.3B, while ordinary profit rose 10% to ¥28.6B, aided by foreign exchange gains and reduced hyperinflation losses.

• Profit attributable to owners increased 3.2% to ¥16.2B, despite one-time extraordinary losses such as impairment and business withdrawal costs.

• Deliberate downward revision of forecasts to prioritize sustainable long-term growth and address market challenges.

• Accelerated investments in talent and digital transformation, especially in Japan and India.

Financial highlights

• Net sales for 1H FY2025 were ¥289.2B, down 1.6% year-over-year, but up 2.3% excluding FX effects.

• Gross profit was ¥93.2B, nearly flat year-over-year, with a gross margin of 32.2%.

• Ordinary profit rose 10% to ¥28.6B; EBITDA was ¥40.0B, down 3.7% year-over-year.

• Basic earnings per share rose to ¥91.88 from ¥78.68 in the prior year period.

• Sales and EBITDA reached record highs in the revised FY2025 plan.

Outlook and guidance

• FY2025 net sales forecast revised to ¥590.0B (from ¥600.0B); operating profit to ¥51.0B (from ¥54.0B).

• EBITDA forecast at ¥84.5B, with a margin of 14.3%.

• Annual dividend forecast is ¥110 per share, unchanged from the previous forecast, with a payout ratio of 61.9%.

• Basic earnings per share for the full year is forecast at ¥193.04.

• Ordinary profit for the full year is projected at ¥55.0B (up 12.0%).