Nippon Paint Holdings reported record revenue for the second quarter of FY2026, with adjusted operating profit also rising sharply. Following strong first-half performance, the company raised its full-year forecast and simultaneously announced plans to reorganize its business and repurchase the automotive coatings business.
Nippon Paint Holdings reported revenue of ¥533.4 billion and adjusted operating profit of ¥94.9 billion for the second quarter of FY2026, record highs and increases of approximately 19.4% and 30.4%, respectively, from the same period a year earlier. Greater selling, general and administrative expense efficiency, a lower raw-materials ratio and the positive impact of yen depreciation on foreign exchange drove growth in revenue and profit.
By segment, Japan, NIPSEA excluding China, Europe and the Americas posted solid growth. NIPSEA China maintained a profit margin of approximately 15%, despite strong revenue growth in local-currency terms. Some parts of the China business struggled, but overall profit was maintained.
The full-year outlook was revised upward to revenue of ¥2 trillion, adjusted operating profit of ¥316.0 billion and adjusted EPS of ¥95.7. The foreign-exchange assumptions were also revised to ¥156.8 per dollar and ¥23.1 per yuan.
At the same time as announcing its results, the company announced plans to repurchase Wuthelam Group’s European automotive coatings business for approximately €47 million. Closing is scheduled for October 2026, and the acquisition will fully restore direct ownership by the Nippon Paint Group. The reorganization into the new structure is also scheduled to take effect in January 2027.