Toto (5332) Q1 2026 earnings summary

Executive summary

• Net sales for the first quarter rose to ¥165.7 billion, up 0.8% year-over-year, but operating profit declined 16% to ¥8.2 billion and profit attributable to owners of parent dropped 28% to ¥6.3 billion.

• Comprehensive income turned negative at ¥(5,773) million, mainly due to significant foreign currency translation adjustment losses.

• Japan Housing Equipment Business saw declines in both sales and profits, while international segments had mixed results with growth in Americas, Asia, and Europe, but a sharp decline in Mainland China.

• New business domains, especially advanced ceramics, delivered strong sales and profit growth, driven by semiconductor market demand.

Financial highlights

• Net sales reached ¥165.7 billion (up 1% YoY); operating profit fell to ¥8.2 billion (down 16% YoY); recurring profit dropped to ¥8.7 billion from ¥14.4 billion YoY.

• Gross profit was ¥58.6 billion, slightly down year-over-year; gross margin declined.

• Selling, general and administrative expenses increased to ¥50.4 billion.

• Total assets decreased to ¥770.4 billion, mainly due to lower cash, deposits, and receivables.

• Net assets declined to ¥508.0 billion, reflecting dividend payments, FX losses, and increased treasury shares.

Outlook and guidance

• Full-year net sales forecast is ¥753.5 billion (up 4% YoY), with operating profit projected at ¥52.1 billion (up 3.4%) and profit attributable to owners of parent at ¥31.0 billion (up 154.7%).

• Interim and year-end dividends are both forecast at ¥50.00 per share, unchanged from the previous year.

• Both sales and operating profit are progressing according to plan, with continued focus on new product launches and restructuring in China.

• Forward-looking statements caution risks from global economic changes, competition, and currency fluctuations.