LIXIL Core Earnings Up 23% in FYE2026, Profitability Improved in Both Japan and International Businesses

・Japan renovation sales expanded in water and high-insulation products, offsetting impact of declining demand for new housing
・LIXIL Water Technology's international business saw significant core earnings improvement, with strong revenue growth in Europe and IMEA (India, the Middle East, Africa) despite delayed full-scale recovery in housing demand
・Addressing rising costs and supply risks by expanding our differentiated recycled materials

Tokyo – LIXIL Corporation (“LIXIL”, TSE Code: 5938), maker of pioneering water and housing products, today announced its full-year results for the fiscal year ending March 31, 2026.

CEO Comment:
“In the fiscal year ending March 2026, we achieved year-on-year growth in both revenue and profit despite the business environment remaining more challenging than anticipated. Core earnings exceeded our initial forecast. In Japan, the decline in new housing demand was offset by growth in renovation sales, which has been a continuous area of focus, and resulted in higher profits across all segments. In our international business, we achieved a significant improvement in core earnings, particularly in Europe and IMEA. Our strategic initiatives, including structural reforms and our shift to high-value-added products, are progressing and steadily yielding results.
Based on the LIXIL Playbook, which outlines our management direction, we have been building a business foundation resilient to external changes. To address geopolitical risks such as the current situation in the Middle East, we are enhancing our agility to respond proactively to changes through the optimization of our supply chain. Furthermore, we have been strategically advancing the development and sales expansion of environmentally friendly and circular products that contribute to improved profitability and mitigate some supply chain risks. These include ‘PremiAL’, a low-carbon aluminum made primarily from scrap aluminum, and ‘revia’, which is made primarily from waste plastic. While the future outlook remains uncertain, we will continue our transformation to strengthen our profitability and achieve sustainable growth.”  

- Kinya Seto

Financial Highlights:
Revenue
Consolidated revenue increased by 0.4% year on year to ¥1,510.7 billion. In Japan, we captured renovation demand for water products and saw the positive effects of price optimization, leading to increased sales. For housing products, while renovation sales increased, the decline in new housing starts had a negative impact. Total revenue for the Japan business increased by 0.5% to ¥1,023.4 billion. Revenue from the international business increased by 0.3% year on year to ¥520.9 billion. Despite continued weak demand in the U.S. and China, we achieved growth through increased sales of fittings and faucets in Europe and by capturing demand in growing markets such as the Middle East and India.

Core Earnings
Core earnings increased by 22.9% to ¥38.5 billion. While the Japan business was impacted by decreased new housing demand, this was offset by an increase in renovation sales and price optimization. The international business saw higher core earnings as we continued to shift toward high-value-added products in Europe and the Middle East. The overall core earnings margin improved by 0.5 pp to 2.5%.

EBITDA
EBITDA (core earnings plus depreciation and amortization), which represents the earning power of our core business, increased by ¥7.1 billion to ¥121.6 billion.

Net profit attributable to owners of the parent   
Net profit was ¥8.1 billion. Despite the impact of an increase in other expenses and finance costs, net profit improved by ¥6.1 billion supported by improved core earnings and a decrease in corporate income tax expenses.

Full-Year Forecast for FYE2027   
For FYE2027, LIXIL expects to generate ¥1,600 billion in revenue, ¥45 billion in core earnings, and ¥12 billion in net profit.*
*Please note that the above forecast is based on information currently available to the company and involves risks and uncertainties. Uncertainties such as the heightened geopolitical risks in the Middle East and the subsequent difficulties in procuring materials caused by supply chain disruptions as well as soaring crude oil prices and rising costs of petroleum based raw materials are not incorporated into this forecast because it is currently difficult to reasonably calculate their financial impact.

Year-End Dividend Forecast   
LIXIL maintains its FYE2026 year-end dividend forecast at ¥45 per share. The annual dividend for FYE2027 is expected to remain the same as the previous year at ¥90 per share.

Performance by Business Segment and Region:
LIXIL Water Technology (LWT)'s Japan business revenue increased by 2.1% to ¥318.6 billion, driven by robust renovation sales. Core earnings grew by 16.8% to ¥23.6 billion, supported by the increased revenue and the positive effects of price optimization. The ratio of revenue generated by renovation-related sales increased by 1.8 pp to 57%.

Revenue from LWT's international business remained flat year on year at ¥492.5 billion. However, core earnings saw a significant improvement, increasing by 31.2% to ¥21.8 billion, supported by sales growth in Europe and IMEA, along with an improved product mix. By region, revenue in the Europe region grew by 4%, and core earnings increased by 15%. Sales of faucets and flushing systems were robust, with increased sales volumes in key markets including Germany. The IMEA region saw a 15% increase in revenue, and core earnings grew 4.3 times. In addition to continued revenue growth in India, strong demand continued in the Middle East. In the Asia-Pacific region, revenue was flat. In the Americas, although retail sales recovered, revenue declined by 4% due to a lack of recovery in the renovation market. However, the Americas region turned profitable in core earnings in the single month of March, reflecting the benefits of structural reforms. In China, revenue decreased by 10% due to the continued downturn in the real estate market.

For LIXIL Housing Technology (LHT) revenue decreased marginally by 0.3% to ¥525.7 billion. Core earnings increased by 2.6% to ¥26.7 billion. Although performance was impacted by a slight decrease in sales for new housing and the surge in aluminum prices, renovation sales remained robust, securing an increase in core earnings due to the positive effects of price optimization and other factors. 
Regarding our environmentally friendly products, our  low-carbon aluminum “PremiAL” is seeing a steady increase in adoption. In addition, we are expanding our initiative to build a proprietary ecosystem for recycling aluminum scrap in collaboration with business partners. For our circular plastic waste material “revia”, we are expanding the product lineup.

Revenue for the Living* business, which handles kitchens, vanities, and interior materials, increased by 1.0% to ¥207.6 billion, and core earnings rose by 8.5% to ¥7.8 billion. This growth in both revenue and core earnings was driven by the positive effects of price optimization and strong sales for renovation products.

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*Please note that LIXIL has established the Living business as a new segment starting from FYE2026. Accordingly, historical performance figures for both the LWT and LHT businesses have been restated to reflect this new segment classification.
*Please see disclosures here.