Nippon Paint (4612) Q3 2025 earnings summary

Executive summary

• Achieved record-high Q3 revenue and operating profit, with revenue up 19% year-over-year and adjusted operating profit and EPS both growing over 40%, driven by M&A contributions, improved price/mix, and the AOC acquisition.

• Adjusted profit figures and historical trends since 2018 are now disclosed for better peer comparison and transparency.

• Both organic and inorganic growth contributed to profit, with organic profit rebounding after a temporary decline in 2021 and AOC recognized as a new reportable segment.

• NIPSEA China grew operating profit despite revenue decline, while NIPSEA Except China and AOC delivered robust growth.

• Consolidated 9M revenue rose 7.8% to ¥1,318,378 million, with operating profit up 36.4% to ¥190,579 million.

Financial highlights

• Q3 revenue increased by 19% year-over-year on a non-GAAP basis, reaching ¥465.9 billion, with margin improvement of about 3 percentage points.

• Adjusted operating profit surged 42.5% to ¥72.8 billion; adjusted EPS up 41.0% to ¥21.3.

• 9M FY2025 revenue grew 7.8% to ¥1,318.4 billion; 9M adjusted operating profit up 32.6% to ¥201.0 billion.

• Gross profit margin improved by 200bps to 41.9%; adjusted operating profit margin up 300bps to 15.6%.

• AOC contributed ¥111,654 million in revenue and ¥39,693 million in operating profit since March 2025.

Outlook and guidance

• FY2025 full-year revenue is expected to reach a new record high, with operating profit guidance of JPY 244 billion likely to be achieved.

• Full-year 2025 revenue forecast: ¥1,820,000 million, up 11.1% year-over-year; operating profit forecast: ¥244,000 million, up 31.0%.

• Q4 demand is slowing in many regions, but organic growth remains positive; a stronger JPY is anticipated.

• If the current weak yen persists, there could be upside potential, but full-year revenue may fall slightly short of JPY 1.8 billion guidance.

• No revisions to previously announced guidance.