LIXIL Corporation (“LIXIL”, TSE Code: 5938), maker of pioneering water and housing products, announced its full-year results for the fiscal year ending March 31, 2026, reporting strong growth in core earnings and improved profitability across both domestic and international operations.
CEO Commentary
“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 Performance Overview
Consolidated revenue increased by 0.4% year on year to ¥1,510.7 billion, In Japan, renovation demand and pricing optimization supported growth despite weak new housing starts.
Japan business revenue rose 0.5% to ¥1,023.4 billion. International revenue increased 0.3% to ¥520.9 billion, driven by Europe, the Middle East, and India despite weakness in the U.S. and China.
Core Earnings
Core earnings increased by 22.9% to ¥38.5 billion, Growth in renovation sales and pricing optimization in Japan offset housing market declines, while international earnings improved due to a shift toward higher-value products. Core earnings margin improved to 2.5%.
EBITDA
EBITDA rose by ¥7.1 billion to ¥121.6 billion, reflecting stronger core business profitability.
Net Profit
Net profit attributable to owners of the parent reached ¥8.1 billion, improving by ¥6.1 billion, supported by stronger core earnings and lower tax expenses.
Outlook and Dividends
LIXIL expects FY2027 revenue of ¥1,600 billion, core earnings of ¥45 billion, and net profit of ¥12 billion, The company maintained its year-end dividend forecast at ¥45 per share and expects total annual dividends of ¥90 per share for FY2027.
Business Segment Performance
Japan revenue increased 2.1% to ¥318.6 billion, with core earnings up 16.8% to ¥23.6 billion. International revenue remained flat at ¥492.5 billion, while core earnings rose 31.2% to ¥21.8 billion, driven by Europe and IMEA growth.
Europe revenue rose 4%, while IMEA revenue increased 15% with core earnings growing 4.3 times, supported by GROHE performance and strong demand in India and the Middle East. Americas revenue declined 4%, while China fell 10%.
Revenue declined slightly by 0.3% to ¥525.7 billion, while core earnings rose 2.6% to ¥26.7 billion, supported by renovation demand and pricing optimization.
Revenue increased 1.0% to ¥207.6 billion, while core earnings rose 8.5% to ¥7.8 billion, driven by renovation demand and pricing improvements.
Sustainability and Circular Products
LIXIL continues expanding its low-carbon aluminum “PremiAL” and recycled plastic “revia” product lines, strengthening its circular economy initiatives and supply chain resilience.
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