LIXIL Revenue Up While Profit Down in Q2 FYE2027

・Japan business profitability temporarily declined due to rising raw material and other costs while water renovation demand recovered
・LIXIL Water Technology's core earnings grew, as robust sales in Europe and IMEA offset sluggish housing demand in the U.S. and China

Tokyo – LIXIL Corporation (“LIXIL”, TSE Code: 5938), maker of pioneering water and housing products, today announced its second quarter (six-month period) results for the fiscal year ending March 31, 2027.

CEO Comment:
“In the first half of FYE2027, supply disruptions subsided, water renovation demand recovered in Japan, and key international markets particularly in Europe and IMEA maintained robust sales. However, profit recovery remained limited due to persistent cost pressures from commodities and materials, alongside additional cost increases stemming from Middle East tensions. Negative impacts from higher costs, particularly aluminum prices, are expected to continue into the second half. From the third quarter onward, which marks the peak demand season particularly in Japan, we expect the positive effects of price optimization to materialize across all product categories, including our housing business. We remain committed to enhancing profitability and returning to a sustainable growth trajectory.
With heightened volatility both in Japan and internationally, this environment continues to test our adaptability. LIXIL has been building a resilient business foundation guided by the LIXIL Playbook, which sets our fundamental management direction. Our ability to navigate supply concerns through an agile supply chain and appropriately pass on rising costs through disciplined pricing are clear results of these efforts. To capture medium- to long-term demand, we are accelerating the international expansion of differentiated housing products and materials such as PremiAL, our recycled aluminum material. Looking ahead, we will also expand our sales presence in new markets such as North America and the Middle East. By leveraging our broad global portfolio across both water and housing technology solutions, we will continue to drive sustainable growth and generate positive social and environmental impact.” 

- Kinya Seto

Financial Highlights:
Revenue
Consolidated revenue increased 3.6% year-on-year to ¥762.5 billion. In the Japan market, while renovation sales recovered in the water technology business, renovation demand was sluggish in the housing business, resulting in Japan business revenue decreasing by 1% year on year to ¥495.7 billion. Revenue from the international business increased by 12% year-on-year to ¥282.8 billion, supported by strong sales in Europe, India, the Middle East, and Africa (IMEA). Revenue also increased on a local currency basis.

Core Earnings
Core earnings declined by ¥11.4 billion year-on-year to ¥5.5 billion. In the international business, robust sales in Europe and IMEA, alongside price optimization measures and structural reform benefits in the US, supported core earnings. However, performance for the Japan business was affected by higher raw material and commodity prices, as well as lower revenue in the housing business.

Net profit attributable to owners of the parent   
LIXIL recorded a net loss of ¥4.6 billion, a decrease of ¥7.9 billion from the previous year. Although other expenses and finance costs decreased, this was outweighed by the decline in core earnings and the rebound from lower tax expenses in the previous year.

Performance by Business Segment and Region:
Revenue for LIXIL Water Technology's (LWT) Japan business increased by 2.2% year-on-year to ¥157.3 billion. Core earnings increased by 12.3% year-on-year to ¥10.8 billion, as price optimization benefits offset soaring material prices.

LWT’s international business recorded revenue of ¥265.4 billion, an 11.1% increase year-on-year. Europe saw a 2% revenue increase, driven by strong sales in Germany and Eastern Europe. The India, Middle East, and Africa (IMEA) region saw a 14% revenue increase, supported by higher sales volume in India, the Gulf states excluding Saudi Arabia, and Northwest Africa. Asia Pacific recorded a 5% revenue increase due to growth in Vietnam and Indonesia. In the Americas, revenue was flat, supported by retail sales and price optimization benefits despite sluggish housing demand. In China, the continued downturn in the real estate market led to ongoing challenges in project sales, resulting in a 16% revenue decrease. Core earnings of LWT’s international business increased by 10.1% year-on-year to ¥12 billion.

Revenue from LIXIL Housing Technology (LHT) decreased by 2.6% year-on-year to ¥252.3 billion, with renovation sales remaining sluggish. Core earnings decreased by ¥11.2 billion to ¥1.1 billion, impacted by lackluster renovation sales alongside surging prices for raw materials and commodities.

Revenue for the Living business increased by 3% year-on-year to ¥103.3 billion, while core earnings decreased by 37.0% to ¥2.2 billion. While renovation sales performed well, profitability was weighed down by negative foreign exchange effects and higher material costs.

-  END

*Please see all disclosures here.