Nippon Paint (4612) Q3 2026 earnings summary

Executive summary

• Q3 revenue reached a record ¥523.7bn, up 12.4% YoY; adjusted operating profit also hit a record ¥84.2bn, up 15.3% organically, with no contribution from new M&A.

• 9M revenue rose 17.4% to ¥1,547.3bn and adjusted operating profit increased 27.2% to ¥256.6bn.

• Growth reflected pricing, product mix, adjacency businesses, favorable FX and improved raw-material cost contribution.

Financial highlights

• Q3 gross profit rose 13.1% to ¥219.8bn; gross margin increased 30 bps to 42.0%.

• Q3 adjusted EPS rose 19.9% to ¥25.7; reported EPS increased 38.8% to ¥27.0, partly reflecting deferred-tax-liability reversal.

• 9M operating profit rose 23.9% to ¥229,288m and profit attributable to owners of parent increased 28.9% to ¥167,691m.

• 9M operating cash flow increased to ¥166,695m from ¥73,361m; investing cash outflow was ¥80,941m versus ¥300,578m, including prior-period acquisition payment.

Outlook and guidance

• FY2026 adjusted guidance unchanged: revenue ¥2tn, adjusted operating profit ¥316bn, margin 15.8% and adjusted EPS ¥95.7; full-year results are expected to meet guidance.

• FY2026 reported-basis forecast unchanged: revenue ¥2tn, operating profit ¥283bn, profit before tax ¥265bn and parent-attributable profit ¥189bn.

• Q4 adjusted operating profit is forecast to decline 5%–10% YoY; adjusted EPS is expected to fall ~20%, below ¥24.5, amid lower margins, higher RMCC ratios, interest expense and tax rate.

• Japan, NIPSEA Except China and DGL Pacific are expected to exceed segment profit guidance; NIPSEA China and DGL Europe are expected to fall short.

• FY reported results include ~¥12bn of M&A-related and DGL Europe transformation expenses.