LIXIL Core Earnings Up 60% in H1 FYE2026

- LIXIL Water Technology's international business saw significant core earnings improvement, driven by continued strong performance in Europe and the Middle East

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

CEO Comment:
“In the first half of the fiscal year ending March 2026, core earnings increased year-on-year, despite a marginal decrease in revenue. In our international business, profits improved significantly, driven by sales recovery and enhanced profitability from structural reforms in Europe as well as strong demand in the Middle East and India. While demand remains sluggish in the US, the positive effects of our price optimizations and structural reforms are expected to gradually materialize, starting this fiscal year. We are implementing measures to ensure LIXIL is prepared for a market rebound. In our Japan business, we successfully captured a wide range of renovation demand, particularly for water products and high-insulation windows, despite a challenging business environment showing sluggish demand for new housing.

LIXIL remains focused on creating innovations that positively impact society and the environment, in line with the LIXIL Playbook. Although the current business environment remains uncertain due to factors like monetary and tariff policies, we are steadily executing priority measures from our medium- term roadmap to enable a full recovery in profitability.”  

- Kinya Seto 

Financial Highlights (6-month period):
Revenue
Revenue for the second quarter of FYE2026 declined marginally year-on-year to ¥735.9 billion. In Japan, revenue increased 1% year-on-year to ¥500.6 billion. Renovation sales, including water solutions and high-insulation window products, increased across all segments, offsetting the decline in new housing starts demand. In international markets, revenue decreased by 4% to ¥251.8 billion. When excluding the impact of foreign exchange, revenue decreased by 3%. The decline was primarily due to continued sluggish demand in the U.S. and China, and the impact of lower revenue following the transfer of the U.S. bathing business last fiscal year, despite strong sales in Europe, the Middle East, and India.

Core Earnings
Core earnings increased by 60% to ¥16.9 billion. The Japan business saw higher profit due to price optimization and robust renovation sales. In the international business, sales growth in the highly profitable European and Middle Eastern markets contributed to increased profits. The core earnings margin improved by 0.9 pp to 2.3%.

Net Profit Attributable to Owners of the Parent
Net profit improved by ¥7.3 billion year-on-year to ¥3.4 billion. This was supported by the improvement in core earnings and a decrease in income tax expenses, despite an increase in other expenses and financial costs.

Performance by Business Segment and Region:

LIXIL Water Technology's (LWT) Japan business revenue increased by 4.0% year-on-year to ¥154.0 billion, driven by increased renovation sales of sanitary ware and bathroom products. Core earnings increased by 24.1% to ¥9.6 billion, reflecting the positive effects of both revenue growth and price optimization. The ratio of revenue generated by renovation-related sales increased by 1.7 pp to 57%. 

The revenue of LWT's international business decreased by 4.0% to ¥238.9 billion yen. On a local currency basis, Europe saw a 5% increase in revenue. Sales recovered in most product categories, including faucets, with increased sales volume in key regions such as Germany, the Netherlands and Italy. The India, Middle East, and Africa (IMEA) region saw a 16% revenue increase. The Middle East experienced sales growth across all countries including Saudi Arabia, and India maintained strong sales momentum from the previous year. Asia Pacific saw a 1% increase in revenue driven by sales recovering in Vietnam though revenue decreased in Thailand. Americas recorded a 5% decrease in revenue due to the lack of demand recovery in the renovation market and the lower revenue following the bathing business divestiture in March 2025. In China, the continued downturn in the real estate market resulted in a 7% revenue decrease. Core earnings improved by 74.1% to ¥10.9 billion.

LIXIL Housing Technology (LHT) revenue decreased by 0.8% year-on-year to ¥259.2 billion. While renovation sales were robust, sales for new housing products saw a slight decrease. Core earnings were flat at ¥12.3 billion. 

Revenue for the Living business, including kitchen, vanity and interior building materials businesses, increased by 2.6% year-on-year to ¥100.3 billion, and core earnings rose by 26.4% to ¥3.4 billion. Sales for renovation products progressed well, and kitchen products maintained strong sales for new housing. The impact of rising raw material and component costs was covered by the effects of pricing optimization.

*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.

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*Please see disclosures here.