Nippon Paint (4612) Q1 2026 earnings summary

Executive summary

• Q1 FY2026 revenue reached ¥490.3 billion, up 20.8% year-over-year, with record adjusted operating profit of ¥76.4 billion and margin of 15.6%, driven by M&A, FX, and volume growth.

• Adjusted EPS rose to ¥24.2, with reported EPS at ¥22.2; comprehensive income reached ¥128,944 million, reversing a prior-year loss.

• Growth was broad-based across Japan, NIPSEA, DuluxGroup, and Americas, with both organic (21.6%) and inorganic (16.3%) contributions.

• The company responded swiftly to market uncertainties, prioritizing supply reliability and customer trust amid Middle East tensions.

• Raw material cost increases from geopolitical tensions are expected to be offset by pricing and cost controls.

Financial highlights

• Gross profit increased 24.6% year-over-year to ¥215.0 billion, with gross margin improving 130bps to 43.9%.

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

• Historical 1Q CAGR (FY2018–FY2026): Revenue 16.0%, gross profit 17.7%, adjusted operating profit 17.6%, adjusted EPS 17.5%.

• 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 total equity at ¥1,922,409 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 and profit attributable to owners at ¥198,000 million.

• Full-year guidance remains achievable despite raw material cost increases and FX volatility; updated outlook to be provided in Q2.

• 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.

• Cost reduction and price pass-through measures are expected to largely offset raw material cost increases.