Latest Results
Overview of Operating Results for the Six Months Ended June 30, 2026
(January 1, 2026 – June 30, 2026)During the six months ended June 30, 2026, consolidated revenue increased year on year, mainly reflecting the contribution from LSF11 A5 TopCo LLC (AOC), including AOC, LLC, a global specialty formulator, and its affiliated companies, following their acquisition in March 2025, together with higher sales volumes and the positive impact of foreign exchange movements. As a result, consolidated revenue amounted to ¥1,023,683 million, an increase of 20.1% from the same period of the previous fiscal year. Consolidated operating profit increased 29.8% year on year to ¥152,315 million. Profit before tax totaled ¥144,254 million, up 28.6% year on year, while profit attributable to owners of parent increased 24.4% year on year to ¥105,150 million.
Revenue from automotive coatings increased compared with the same period of the previous fiscal year, supported by higher automobile production volumes and the penetration of selling price revisions. Revenue from industrial coatings also increased year on year despite weak market conditions, reflecting the penetration of selling price revisions. Revenue from decorative paints likewise increased compared with the same period of the previous year, driven by demand arising from tight raw material supply and expanded sales of high-durability products for architectural and structural applications.
As a result, revenue in the segment amounted to ¥114,063 million, an increase of 13.3% from the same period of the previous fiscal year, while segment operating profit increased 45.3% year on year to ¥14,399 million.
Revenue from automotive coatings in the NIPSEA segment increased compared with the same period of the previous year, as strong sales to Chinese OEMs more than offset lower automobile production in China and Thailand. Revenue from decorative paints also increased year on year, driven by sales volume growth in key markets, including Malaysia, Singapore, Indonesia, and Türkiye.
As a result, revenue in the segment increased to ¥504,172 million, an increase of 15.0% year on year from the same period of the previous fiscal year, while segment operating profit increased 25.1% year on year to ¥86,511 million.
Revenue from decorative paints increased compared with the same period of the previous fiscal year, despite largely flat market conditions both in the Pacific and European markets, driven by an improved product mix in the Pacific region and growth in the Central European business. Revenue from the adjacencies business also increased year on year, reflecting contributions from small-scale acquisitions despite continued soft market conditions in the Pacific region and Europe.
As a result, revenue in the segment amounted to ¥232,359 million, an increase of 23.2% year on year. Segment operating profit decreased 10.2% year on year to ¥16,489 million, due to an increase in SG&A ratio.
*DuluxGroup Limited is an Australian company that holds the rights to the Dulux® trademark exclusively in Australia, New Zealand, Papua New Guinea, Samoa and Fiji. DuluxGroup Limited is not affiliated with, nor connected to, the owners of the Dulux® trademark in other regions and does not sell Dulux® products outside these designated markets.
Revenue from automotive coatings increased compared with the previous fiscal year, despite lower automobile production, supported by market share expansion through new account acquisitions. Revenue from decorative paints also increased year on year, as successful pricing initiatives and the positive impact of foreign exchange movements more than offset weaker demand resulting from uncertainty in the U.S. economy and continued softness in the housing market.
As a result, revenue in the segment amounted to ¥65,479 million, an increase of 9.1% from the same period of the previous fiscal year, while segment operating profit increased 8.1% year on year to ¥4,224 million.
Since March 2025, the operating results of AOC have been included in the Group’s consolidated results. Revenue from the adjacencies business increased, despite continued challenging macroeconomic environment, driven primarily by higher sales volumes and successful pricing initiatives.
As a result, revenue in the segment amounted to ¥107,608 million, an increase of 66.2% from the same period of the previous fiscal year, while segment operating profit increased 77.8% year on year to ¥34,072 million.
Revenue Composition
- Revenue by Segment
-
Unit: %11.1% 49.3% 22.7% 6.4% 10.5%Composition 100%
- ■Japan: 114,063 (11.1%)
- ■NIPSEA: 504,172 (49.3%)
- ■DuluxGroup: 232,359 (22.7%)
- ■Americas: 65,479 (6.4%)
- ■AOC: 107,608 (10.5%)
- Revenue by Business
-
Unit: %11.1% 56.2% 5.8% 1.0% 5.6% 20.2%Composition 100%
- ■Automotive coatings: 113,999 (11.1%)
- ■Decorative paints: 575,527 (56.2%)
- ■Industrial coatings: 59,105 (5.8%)
- ■Fine chemicals: 10,297 (1.0%)
- ■Other paints: 57,595 (5.6%)
- ■Adjacencies business: 207,156 (20.2%)
《Revenue》
(Unit: ¥ million)
| 1Q | 2Q (Cumulative) | 3Q (Cumulative) | Full Year | |
|---|---|---|---|---|
| FY2022 | 285,096 | 622,049 | 979,916 | 1,309,021 |
| FY2023 | 330,213 | 692,925 | 1,085,878 | 1,442,574 |
| FY2024 | 384,319 | 817,143 | 1,222,747 | 1,638,720 |
| FY2025 | 405,724 | 852,428 | 1,318,378 | 1,774,231 |
| FY2026 | 490,278 | 1,023,683 | – | – |
* Hyperinflation accounting has been applied to the Turkish subsidiary since Q2 FY2022. Figures from FY2022 onward reflect this application.
《Operating Profit》
2Q Cumulative (January–June)
Against the backdrop of higher revenue driven by AOC contributions, higher sales volumes, and favorable FX movements, consolidated operating profit increased 29.8% year on year to ¥152,315 million.
2Q (April–June)
Adjusted operating profit increased sharply by 30.4% year on year, driven by higher revenue and an improved RMCC ratio, while the adjusted OP margin improved by 150 bps to 17.8%. The impact of Middle East-related cost increases varied by region and business but was offset in 2Q by price pass-through and cost reductions.
(Unit: ¥ million)
| 1Q | 2Q (Cumulative) | 3Q (Cumulative) | Full Year | |
|---|---|---|---|---|
| FY2022 | 21,898 | 42,104 | 81,831 | 111,882 |
| FY2023 | 34,909 | 83,738 | 131,625 | 168,745 |
| FY2024 | 41,245 | 92,461 | 139,705 | 186,206 |
| FY2025 | 49,733 | 117,317 | 190,579 | 257,104 |
| FY2026 | 70,948 | 152,315 | – | – |
* Hyperinflation accounting has been applied to the Turkish subsidiary since Q2 FY2022. Figures from FY2022 onward reflect this application.
* Retrospective adjustments were made for FY2022 following the finalization of PPA for Cromology and JUB.
* Retrospective adjustments were made for FY2024 following the finalization of PPA for Alina, NPI, and BNPA.
* As the provisional accounting treatment for the business combination was finalized at the end of the fiscal year ended December 31, 2025, the relevant amounts for the second quarter of the fiscal year ended December 31, 2025 reflect the finalization of such provisional accounting treatment.
《Profit Attributable to Owners of Parent》
2Q Cumulative (January–June)
Supported by higher operating profit on higher revenue driven by AOC contributions, higher sales volumes, and favorable FX movements, profit attributable to owners of parent increased 24.4% year on year to ¥105,150 million.
2Q (April–June)
Higher revenue contributed to an increase in profit, with profit attributable to owners of parent for 2Q reaching ¥53,626 million, up 9.9% year on year. EPS was 23.1 yen, up 11.2% year on year, while adjusted EPS was 29.4 yen, up 31.7% year on year.
(Unit: ¥ million)
| 1Q | 2Q (Cumulative) | 3Q (Cumulative) | Full Year | |
|---|---|---|---|---|
| FY2022 | 13,225 | 26,971 | 54,695 | 79,418 |
| FY2023 | 25,340 | 60,898 | 93,444 | 118,476 |
| FY2024 | 29,428 | 65,049 | 96,902 | 125,890 |
| FY2025 | 35,698 | 84,502 | 134,336 | 179,800 |
| FY2026 | 51,524 | 105,150 | – | – |
* Hyperinflation accounting has been applied to the Turkish subsidiary since Q2 FY2022. Figures from FY2022 onward reflect this application.
* Retrospective adjustments were made for FY2022 following the finalization of PPA for Cromology and JUB.
* Retrospective adjustments were made for FY2024 following the finalization of PPA for Alina, NPI, and BNPA.
* As the provisional accounting treatment for the business combination was finalized at the end of the fiscal year ended December 31, 2025, the relevant amounts for the second quarter of the fiscal year ended December 31, 2025 reflect the finalization of such provisional accounting treatment.
2Q Cumulative (January–June)
During the six months ended June 30, 2026, consolidated revenue increased year on year, mainly reflecting the contribution from LSF11 A5 TopCo LLC (AOC), including AOC, LLC, a global specialty formulator, and its affiliated companies, following their acquisition in March 2025, together with higher sales volumes and the positive impact of foreign exchange movements. As a result, consolidated revenue amounted to ¥1,023,683 million, an increase of 20.1% from the same period of the previous fiscal year.
2Q (April–June)
Revenue increased by 19.4% year on year, driven by sales volume growth, an improved product/mix, and favorable FX movements. Higher revenue in Japan and NIPSEA Except China was supported by volume growth and price revisions, while automotive revenue increased in NIPSEA China, the Americas, and other regions, outpacing market growth in each region.