Toto (5332) Q3 2026 earnings summary

Executive summary

• Sales increased year-over-year, but profits declined due to higher costs and restructuring expenses, with progress in line with the plan.

• Japan's housing equipment business saw flat sales but lower profits, with a rebound in remodeling and new construction in 3Q.

• International housing equipment business experienced decreased sales and profits, with growth in the Americas and Asia but losses in Mainland China.

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

Financial highlights

• Net sales rose to ¥547.1 billion (up 1% YoY), but operating profit fell to ¥40.4 billion (down 3%).

• Operating margin decreased to 7.4% from 7.7% YoY.

• Profit attributable to owners dropped to ¥28.5 billion (down 25% YoY).

• Currency fluctuations had a negative impact on results.

• Recurring profit was ¥46.5 billion (up 2%).

Outlook and guidance

• Progress is on track with the initial plan, despite profit declines.

• Business restructuring in Mainland China is expected to stabilize revenue structure by FY2030.

• New product launches and remodeling initiatives are expected to drive future growth in Japan and China.