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LIXIL (5938) investor relations material
LIXIL Q1 2026 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Q1 FY2026 revenue was ¥364.7 billion, down 1.4% year-over-year, but core earnings and EBITDA rose sharply, driven by strong renovation demand, product mix, and margin improvements, especially in Europe, the Middle East, and Japan.
Operating profit improved to ¥6.8 billion from a loss of ¥0.5 billion in the prior year; net loss narrowed to ¥0.5 billion from ¥5.8 billion, reflecting improved profitability and foreign exchange gains.
Structural reforms, including withdrawal from the ceramic siding business and reorganization in Europe, are largely complete, reducing future restructuring costs.
Despite global housing market challenges, profit margins improved due to high value-added products, price optimization, and strong renovation demand.
Comprehensive income attributable to owners was ¥9.7 billion, up from ¥20.6 billion last year.
Financial highlights
Gross profit increased to ¥124.8 billion from ¥117.4 billion year-over-year, with gross margin up 2.5pp to 34.2%.
Core earnings rose to ¥9.0 billion from ¥0.6 billion; EBITDA increased by ¥7.6 billion to ¥29.4 billion.
Operating profit reached ¥6.8 billion, reversing a loss of ¥0.5 billion in the prior year.
Net loss for the quarter: -¥900 million, an improvement of ¥4.9 billion year-over-year.
Basic and diluted loss per share improved to ¥-3.17 from ¥-20.39 year-over-year.
Outlook and guidance
No change to the full-year forecast despite Q1 outperformance and ongoing market uncertainties, especially in the U.S. and China.
FY2026 revenue forecast is ¥1,540 billion, up 2.3% year-over-year; core earnings projected at ¥35.0 billion, operating profit at ¥30.0 billion, and net profit at ¥8.0 billion.
Full demand recovery in Europe expected from next fiscal year; U.S. and China remain uncertain due to tariffs, interest rates, and housing market conditions.
Benefits from the sale of the bathing business expected to materialize after FY2027.
No revision to previously announced earnings or dividend forecasts.
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