Toto (5332) Q2 2026 earnings summary

Executive summary

• First half of FY2025 saw declines in both sales and profits, mainly due to lower volumes and increased costs in the Japan Housing Equipment Business and restructuring in Mainland China.

• Net sales for the six months ended September 30, 2025, were ¥349,372 million, down 1.8% year-over-year.

• Operating profit declined 13.9% year-over-year to ¥20,781 million.

• Profit attributable to owners of parent dropped 48.1% year-over-year to ¥8,790 million.

• New Business Domains, especially the Advanced Ceramics Business, delivered significant sales and profit growth, driven by strong semiconductor market demand.

Financial highlights

• Net sales for 1H FY2025 were ¥349.4 billion, down 2% year-over-year; operating profit was ¥20.8 billion, down 14%.

• Gross profit for the period was ¥123,625 million, down from ¥125,939 million year-over-year.

• Ordinary profit increased slightly by 1.8% to ¥23,089 million.

• Profit attributable to owners of parent dropped to ¥8.8 billion, a 48% decrease year-over-year, impacted by extraordinary losses from China restructuring.

• Advanced Ceramics Business posted 137% sales growth and 142% profit growth year-over-year.

Outlook and guidance

• Full-year FY2025 plan revised downward: net sales now expected at ¥734.5 billion (down ¥19.0 billion from previous plan), operating profit at ¥49.0 billion (down ¥3.5 billion).

• Full-year net sales forecast for FY ending March 31, 2026, is ¥734,500 million, up 1.4% year-over-year.

• Profit attributable to owners of parent is forecast at ¥29,000 million, a 138.3% increase year-over-year.

• Dividend forecast remains unchanged at ¥100 per share for the full year.

• Japan Housing Equipment Business outlook lowered due to weaker-than-expected remodeling and new housing sales.