Nippon Paint Raises Revenue Outlook After Record Second Quarter
Nippon Paint Holdings Co., Ltd. reported record-high second-quarter revenue and operating performance, supported by higher sales volumes, an improved product mix, pricing actions and favorable foreign exchange effects.
Second-quarter revenue reached ¥533.4 billion, up 19.4% year over year, while adjusted operating profit increased 30.4% to ¥94.9 billion. The adjusted operating profit margin rose 150 basis points to 17.8%.
Nippon Paint said revenue growth reflected higher sales volumes, improved product mix and favorable currency movements. Japan, NIPSEA Except China and DuluxGroup Pacific recorded higher revenue and operating profit, supported by volume growth and price revisions.
Raw-material cost increases related to conditions in the Middle East varied by region and business during the quarter. The company said those increases were offset in the second quarter through price pass-through and cost reductions. Nippon Paint expects the impact of higher raw-material costs to become more pronounced during the second half but said it plans to counter those pressures through pricing, cost reductions and other measures.
For the first half, revenue increased 20.1% to ¥1.024 trillion. On a reported basis, operating profit increased 29.8% to ¥152.3 billion. Adjusted operating profit for the six-month period was ¥172.4 billion, up 34.0%, keeping the reported and adjusted measures distinct.
The company raised its full-year 2026 revenue forecast by ¥80 billion, from ¥1.92 trillion to ¥2 trillion, primarily reflecting favorable currency movements. Its reported operating profit forecast remains unchanged at ¥283 billion.
In Japan, second-quarter revenue increased 17.9% to ¥61.6 billion, with growth across automotive, decorative and industrial coatings. Automotive coatings revenue rose 7.9% to ¥10.1 billion, decorative paints increased 26.3% to ¥15.6 billion, and industrial coatings revenue climbed 22.3% to ¥11.9 billion.
Nippon Paint attributed automotive coatings growth in Japan to higher sales, increased automobile production and selling-price revisions, including actions taken in response to higher procurement costs related to the Middle East situation. Decorative paint revenue benefited from demand associated with supply concerns and stronger sales of high-durability architectural and structural products, while industrial coatings benefited from higher volumes.
The results provide coatings manufacturers with a broad view of global coatings demand, pricing and raw-material cost trends across decorative, automotive and industrial markets. Follow PCI’s Financial Reports coverage for additional coatings-industry earnings and financial performance updates.
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