Chugoku Marine Paints (4617) Q3 2026 earnings summary

Executive summary

• Net sales rose 6.1% year-over-year for Q1–Q3 FY2025 to ¥101,930 million, driven by strong marine coatings sales and optimized pricing reflecting manufacturing costs.

• Operating profit increased 11.0% year-over-year to ¥12,922 million, with improved profitability from higher sales of high-value-added products and price revisions.

• Ordinary profit rose 10.4% year-over-year to ¥13,262 million.

• Profit attributable to owners of parent declined 17.7% year-over-year to ¥8,799 million, mainly due to the absence of a prior-year gain on sale of non-current assets.

• Comprehensive income dropped 19.7% year-over-year to ¥11,021 million.

Financial highlights

• Net sales: ¥101,930 million (+6.1% YoY); Operating profit: ¥12,922 million (+11.0% YoY); Ordinary profit: ¥13,262 million (+10.4% YoY).

• Gross margin improved by 1.3pp to 33.8% year-over-year; gross profit increased to ¥34,410 million.

• SG&A expenses increased 9.6% year-over-year to ¥21,488 million, mainly from higher personnel and transportation costs.

• Depreciation and R&D expenses rose 9.3% and 3.5% year-over-year, respectively.

• Basic earnings per share for the nine months was ¥177.41, down from ¥215.66 in the prior year.

Outlook and guidance

• Full-year FY2025 sales forecast revised upward to ¥137,000 million (+4.5% YoY); operating profit forecast raised to ¥17,500 million (+13.8% YoY); ordinary profit forecast at ¥17,700 million (+7.4% YoY); profit attributable to owners of parent forecast at ¥11,500 million (−16.2% YoY).

• Basic earnings per share for the full year is projected at ¥231.86.

• Annual dividend forecast increased to ¥111 per share, including a special dividend of ¥14, with a payout ratio of 47.9%.

• Sales growth expected in marine coatings, especially in Japan, South Korea, and Europe; industrial coatings forecast lowered due to Southeast Asia weakness.