Earnings Forecast (FY2026 Outlook)
On August 7, 2026, we revised our consolidated full-year earnings forecast for the fiscal year ending December 31, 2026. Although uncertainty surrounding the Middle East situation and other factors is expected to persist, overall business performance is projected to remain broadly in line with our initial forecast announced in February, supported by successful price increases and marketing initiatives. Reflecting mainly foreign exchange impacts, we revised our revenue forecast upward by ¥80.0 billion from the February forecast to ¥2.0 trillion, representing a year-on-year increase of 12.7%.
Operating profit on a reported basis is forecast at ¥283.0 billion, up 10.1% year on year and unchanged from the February forecast, despite the recognition of one-off expenses including M&A-related costs and business transformation costs for DuluxGroup's European operations, supported by favorable foreign exchange impacts. Adjusted operating profit is forecast at ¥316.0 billion, up 13.6% year on year. Although the impact of higher raw material costs is expected to become more pronounced in the second half, we expect to offset this through price pass-through and cost reduction measures, maintaining the full-year margin at around the level initially assumed.
Profit before tax is forecast at ¥265.0 billion, up 5.8% year on year, while profit attributable to owners of parent is forecast at ¥189.0 billion, up 5.1%. EPS on a reported basis was revised slightly downward from the February forecast due to one-off expenses and the impact of the tax rate, and is now forecast at ¥81.5, up 6.3% year on year. Adjusted EPS is forecast at ¥95.7, up 10.0% year on year. The annual dividend forecast remains unchanged at ¥17 per share.
* Forecast announced on August 7, 2026
(Unit: ¥100 million)
| (¥100 million) | FY2022 Actual |
FY2023 Actual |
FY2024 Actual |
FY2025 Actual |
FY2026 Feb. Forecast |
FY2026 Aug. Revised Forecast |
YoY |
|---|---|---|---|---|---|---|---|
| Revenue and Adjusted Metrics | |||||||
| Revenue | 13,090 | 14,426 | 16,387 | 17,742 | 19,200 | 20,000 | +12.7% |
| Adjusted operating profit | 1,408 | 1,815 | 1,996 | 2,749 | Growth rate c.+10% |
3,160 | +13.6% |
| Adjusted EPS (yen) | 45.4 | 57.6 | 60.4 | 86.0 | Growth rate c.+10% |
95.7 | +10.0% |
| Reported Metrics | |||||||
| Operating profit | 1,119 | 1,687 | 1,862 | 2,571 | 2,830 | 2,830 | +10.1% |
| Operating profit margin | 8.5% | 11.7% | 11.4% | 14.5% | 14.7% | 14.2% | -0.3pt |
| Profit before tax | 1,045 | 1,615 | 1,801 | 2,506 | 2,740 | 2,650 | +5.8% |
| Profit attributable to owners of parent | 794 | 1,185 | 1,259 | 1,798 | 1,980 | 1,890 | +5.1% |
| EPS (yen) | 33.8 | 50.4 | 53.6 | 76.7 | 85.3 | 81.5 | +6.3% |
| Shareholder Returns | |||||||
| Annual dividend per share (yen) | 11.0 | 14.0 | 15.0 | 16.0 | 17.0 | 17.0 | +1.0 |
* FY2022 actual represents profit attributable to owners of parent from continuing operations. FY2023-FY2025 actuals and the FY2026 forecast represent profit attributable to owners of parent.
