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LIXIL (5938) investor relations material

LIXIL Q3 2026 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 2026 earnings summary30 Jan, 2026

Executive summary

  • Core earnings for Q3 reached JPY 36.5 billion and EBITDA JPY 98.4 billion, with profit attributable to owners rising to JPY 11.8 billion, driven by strong renovation demand in Japan and robust international performance, despite a slight revenue decline to JPY 1,138.5 billion.

  • Basic earnings per share increased to JPY 41.08, up JPY 26.17 year-over-year.

  • The company is focused on asset efficiency, tax management, and optimizing its earnings structure to reduce the gap between EBITDA and core earnings.

  • Segment restructuring was implemented, integrating kitchen, washstand cabinet, and wooden interior materials into the new Living Business segment.

Financial highlights

  • Revenue for the quarter was JPY 1,138.5 billion, down JPY 2.0 billion (-0.2%) year-on-year, with gross profit margin up 1.3 points to 34.4%.

  • Core earnings grew 17.5% to JPY 36.5 billion, and EBITDA rose 5.0% to JPY 98.4 billion year-over-year.

  • SG&A expenses increased by JPY 8.7 billion, mainly due to higher personnel costs in Japan.

  • Free cash flow remained positive at JPY 22.3 billion, despite lower operating cash flow due to higher receivables and inventories.

  • Equity ratio stands at 34.4%.

Outlook and guidance

  • Full-year revenue forecast is JPY 1,540.0 billion, up 2.3% year-on-year, with profit attributable to owners projected at JPY 8.0 billion, a 299.7% increase year-on-year.

  • No adjustment to full-year earnings forecast, citing increased uncertainties and the need for caution in the final quarter.

  • Commodity prices, especially aluminum and copper, have risen sharply, impacting cost structure; the company is leveraging high scrap usage to mitigate immediate effects.

  • Recovery in the European housing market is delayed, with expectations now shifted to the second half of fiscal 2027.

  • Japan's renovation market is expected to grow, supported by energy efficiency standards and subsidies.

What drove the Q3 profit surge despite flat revenue?
Impact of new Living Business segment strategy?
Why did operating cash flow decrease in Q3?
Asset efficiency: What scale of depreciation reduction?
US business turnaround: Drivers for next year's profit?
Japan renovation: Key strategies for profit growth?
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Frequently asked questions

LIXIL Corporation is a provider of housing and building materials. Specializing in the manufacture and distribution of a wide range of housing and living-related products, LIXIL's offerings include windows, interior and exterior building materials, tiles, entrance doors, and interior fabrics, along with larger systems such as unit bathrooms, water faucets, washstands, toilets, and kitchens. Additionally, LIXIL extends its services to real estate franchising, housing loans, and real estate management. The company markets its products and services under various brands, including INAX, Grohe, American Standard, Tostem, Richelle, Spage, Interio, Exsior, NODEA, Super Wall, among others, catering to dealers, developers, wholesalers, construction companies, retailers, architectural firms, and general consumers. The company is headquartered in Tokyo, Japan, and its shares are listed on the Tokyo Stock Exchange.

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