Nippon Paint Sees $2.68 Billion Q1 Revenue Growth With 24.7 Percent Profit Surge

On May 14, Nippon Paint Holdings announced its 2025 Q1 financial results, reporting a 5.6 percent increase in sales to 405.72 billion yen ($2.68 billion), driven by higher volumes and the impact of recent acquisitions, including US-based AOC. Operating profit surged by 24.7 percent to 51.43 billion yen, supported by improved raw material costs and contributions from new business integrations.

The company’s EBITDA rose 21.5 percent to 67.7 billion yen, while pre-tax profit reached 48.19 billion yen, marking a 20.7 percent increase. Net profit attributable to shareholders soared by 25.7 percent to 36.99 billion yen, signaling strong operational efficiency.

Japan’s automotive coatings sector saw a rebound as auto production recovered, boosting regional sales by 4.1 percent to 48.37 billion yen, with operating profit climbing 19.2 percent. In Southeast Asia, sales of general coatings remained stable despite political challenges, with 15.9 percent profit growth. However, DuluxGroup sales dipped 3.5 percent, impacted by weak demand in Europe and the Pacific region.

In China, Nippon Paint earned 127.6 billion yen ($613.5 million) in Q1 revenue, down 1.9 percent year-on-year, due to a weak real estate market. Automotive coatings sales grew by 1.3 percent, while construction coatings fell 2.7 percent amid lower project-based revenues. Despite revenue declines, net profit in China increased by 12.6 percent, thanks to streamlined trade practices and improved material costs.

Looking ahead, Nippon Paint forecasts full-year 2025 revenue of 1.82 trillion yen ($12.3 billion), a growth of 11.1 percent, and expects profit to rise by 30 percent. The company aims to expand its market share by strengthening its sales network, focusing on Tier 3–6 cities in China, and diversifying income streams in infrastructure and government projects.