Nippon Paint (4612) Q2 2025 earnings summary

Executive summary

• Achieved record-high revenue and operating profit, with 2Q revenue at ¥446.7bn and 1H revenue at ¥852.4bn, driven by the AOC acquisition and margin expansion despite FX headwinds and challenging global markets.

• Operating profit increased 36.2% YoY in 2Q to ¥69.7bn and 31.1% YoY in 1H to ¥121.2bn, with profit attributable to owners up 34.4% to ¥87,454m.

• Profitability focus and disciplined cost controls led to margin outperformance in several regions, notably China and Asia.

• Segment performance varied, with Japan and NIPSEA showing profit growth, while DuluxGroup and Americas segments experienced revenue declines.

• AOC was newly consolidated, contributing ¥64,753m in revenue and ¥23,020m in operating profit for the period.

Financial highlights

• 2Q revenue (Tanshin) rose 3.2% YoY to ¥446.7bn; operating profit up 36.2% to ¥69.7bn; OP margin expanded 380bps to 15.6%.

• 1H revenue up 4.3% YoY to ¥852.4bn; operating profit up 31.1% to ¥121.2bn.

• Gross profit for the six months was ¥359,574m, up from ¥329,159m YoY; gross profit margin improved by 1.4 points YoY.

• Basic and diluted EPS for 2Q at ¥15.75, and for 1H at ¥37.23, both up YoY.

• Net debt at ¥471.0bn as of June 30, 2025, down from ¥574.1bn a year earlier.

Outlook and guidance

• Full-year 2025 revenue forecast at ¥1,820,000m (up 11.1% YoY), operating profit at ¥244,000m (up 31.0%), and profit attributable to owners at ¥162,000m.

• Guidance remains unchanged, with segment forecasts revised for local market and FX trends; margins expected to remain above projections through cost discipline.

• No revisions to the previously announced earnings forecast for the fiscal year ending December 31, 2025.