Kansai Paint (4613) Q4 2026 earnings summary

Executive summary

• Net sales and EBITDA reached record highs for the fifth consecutive year, with net sales rising 0.2% YoY to ¥589.8B and EBITDA at ¥82.5B, while operating profit declined 4.5% YoY to ¥49.7B and ordinary profit rose 11.4% YoY to ¥54.7B, driven by FX gains and equity method profits.

• Profit attributable to owners of parent declined 17.4% YoY to ¥31.6B due to the absence of prior-year extraordinary gains and the impact of one-time losses, including early retirement payments and business withdrawal costs.

• Africa delivered strong earnings growth, Japan completed core system renewal, and India achieved balanced growth with improved profitability.

• Europe launched the "True Color" structural reform program, incurring additional costs.

Financial highlights

• FY2025 net sales: ¥589.8B (+0.2% YoY); EBITDA: ¥82.5B (+1.6% YoY); operating profit: ¥49.7B (−4.5% YoY); ordinary profit: ¥54.7B (+11.4% YoY); net profit: ¥31.6B (−17.4% YoY).

• Gross profit increased to ¥191.3B from ¥185.7B YoY.

• Comprehensive income was ¥47.3B, down from ¥55.4B the previous year.

• Segment profit margin stable at 9.1%; EBITDA margin improved to 14.0%.

• Additional expenses: ¥2.0B tax dispute provision (Tanzania), ¥1.0B impairment loss (Spiber).

Outlook and guidance

• FY2026 plan: net sales ¥610.0B (+3.4% YoY), operating profit ¥53.0B (+6.6%), EBITDA ¥92.0B (+11.5%), ordinary profit ¥55.0B (+0.5%), net profit ¥27.0B (−14.7% YoY), basic EPS ¥153.37.

• Segment profit expected to rise 5.8% YoY; EBITDA margin to reach 15.1%.

• Extraordinary losses of ¥7.0B planned for "True Color" project in Europe.

• Annual dividend forecast for FY2026 and FY2027 is ¥110/share.