Kansai Paint (4613) Q4 2025 earnings summary

Executive summary

• Achieved record highs in sales and operating income for the second consecutive year, driven by new consolidation in Europe and strong sales in India and Africa.

• Net sales rose 4.7% year-over-year to 588.8 billion JPY, with operating income up 0.9% to 52.1 billion JPY, but net income dropped 42.9% to 38.3 billion JPY due to one-off losses and absence of prior-year gains.

• Ordinary income declined 14.9% year-over-year, impacted by currency exchange losses, hyperinflation, and impairment losses in Turkey and on affiliates.

• Comprehensive income fell 34.9% year-over-year to 55.4 billion JPY.

• Plans to increase annual dividend from 40 JPY to 50 JPY, reflecting higher income and EPS.

Financial highlights

• FY2024 net sales rose 4.7% year-over-year to 588.8 billion JPY; operating income up 0.9% to 52.1 billion JPY.

• Ordinary income fell 14.9% to 49.1 billion JPY; net income dropped 42.9% to 38.3 billion JPY due to one-off items.

• EBITDA decreased 1.2% to 81.2 billion JPY; EBITDA margin declined by 0.8pt to 13.8%.

• Adjusted EPS (excluding one-off) increased to 165.61 JPY from 150.44 JPY year-over-year.

• Gross profit increased to 185.7 billion JPY, but operating margin slipped to 8.8%.

Outlook and guidance

• FY2025 guidance targets record-high net sales of 600.0 billion JPY (+1.9%) and operating income of 54.0 billion JPY (+3.7%).

• Ordinary income expected to rise 18.1% to 58.0 billion JPY; EBITDA forecasted at 86.0 billion JPY (+5.9%).

• Net income projected to decrease 6.0% to 36.0 billion JPY; EPS forecasted at 204.29 JPY.

• Dividend forecast for FY2026 is 56.00 JPY per share.

• Focus on profitability, structural reforms in Japan and Europe, and continued investment in human resources and production.