LIXIL Profits Up in Q1 FYE2026 Driven by Water Business

- Improved profitability in Japan driven by capture of renovation demand, particularly for water products
- LIXIL Water Technology's (LWT’s) international core earnings significantly improved following strong performance in Europe and the Middle East, despite continued sluggish demand in the U.S.

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

CEO Comment:
“In the first quarter of FYE2026, we have increased profits year-on-year, despite a decrease in revenue. In our Japan business, higher profits were driven by our long-standing focus on capturing renovation demand, which has progressed steadily especially for water products. In our housing business, although core earnings achieved our plan partly due to better-than-anticipated sales for new housing, we will further strengthen sales promotion measures to expand sales of renovation products. In our international water business, the strong performance in Europe and the Middle East, including shifting to a more favorable product mix, enabled us to significantly improve core earnings.

Uncertainty remains in the U.S. housing market, and we need to remain vigilant about the outlook in the overall business environment. However, large-scale structural reforms are largely complete, and we are steadily building the business foundation for growth. We will continue to deploy strategies aimed at returning to a full-fledged growth trajectory and accelerate the development of differentiated innovations that create positive social and environmental impact to ensure sustainable growth.”  

- Kinya Seto 

Financial Highlights: 
Revenue
Consolidated revenue for the first quarter of FYE2026 decreased by 1% year-on-year to ¥364.7 billion. In Japan we expanded renovations sales for water products, and sales for new housing declined less than expected, resulting in Japan business revenue increasing by 3% year-on-year to ¥251.0 billion. Revenue from the international business decreased by 8% to ¥121.7 billion, and a 4% decline on a local currency basis.

Core Earnings
Core earnings for the first quarter increased by ¥8.4 billion year-on-year to ¥9.0 billion. This was driven by improved profitability in the water business across most key markets, both in Japan and internationally, offsetting the impact of sluggish demand in the U.S. The core earnings margin improved by 2.3 pp to 2.5%.

Net Profit Attributable to Owners of the Parent
For the first quarter, LIXIL recorded a net loss of ¥0.9 billion, an improvement of ¥4.9 billion from the same period in the previous year, supported by increased core earnings despite the impact of increased other expenses and financial costs.

Performance by Business Segment and Region:
Revenue for LIXIL Water Technology's (LWT) Japan business increased by 6.5% year-on-year to ¥77.6 billion, due to strong renovation sales and a surge in demand resulting from amendment to the Building Standards Act. Core earnings increased by 34.5% to ¥5.2 billion, driven by increased revenue and price optimization efforts. We captured renovation demand particularly in bathrooms and toilets, with the ratio of revenue generated by renovation-related sales increasing by 2.3 pp to 57%.

LWT’s international business recorded revenues of ¥115.6 billion, a 8.7% decrease year-on-year. On a local currency basis, Europe experienced continued sales improvement, with a 4% revenue increase. The India, Middle East, and Africa (IMEA) region saw a 16% revenue increase, driven by stable sales growth in India and revenue increases across all markets of the Middle East. Asia Pacific recorded a 5% revenue increase, including a recovery in retail sales in Vietnam. Americas saw a 7% revenue decrease. Demand in the renovation market has yet to recover due to the limited impact of interest rate cuts, and revenue decline was also attributed to ERP system transition. In China, the continued downturn in the real estate market resulted in an 11% revenue decrease. Core earnings improved by ¥5.1 billion to ¥5.4 billion, primarily due to revenue growth in Europe and the Middle East, along with operational improvements.

Revenue from LIXIL Housing Technology (LHT) was almost flat year-on-year at ¥128.2 billion. Renovation sales fell short of the plan, but sales for new housing declined less than expected. Core earnings increased by 31.9% to ¥6.1 billion, driven by price optimization and cost reductions, and were also impacted by inventory valuation gains.

Revenue for the Living business increased by 4.7% year-on-year to ¥51.3 billion, and core earnings rose by 56.7% to ¥2.2 billion. Profitability improved due to strong renovation sales, and kitchen products also maintained strong sales for new housing.

*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.