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LIXIL (5938) investor relations material
LIXIL Q2 2026 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
First-half revenue for FY2026 was ¥735.9 billion, a slight year-on-year decrease, but core earnings rose 60.4% to ¥16.9 billion and EBITDA increased, driven by strong renovation sales in Japan and profit recovery in Europe and the Middle East.
Profit attributable to owners improved to ¥3.4 billion, supported by higher core earnings and lower tax expenses.
Japanese renovation sales remained robust, offsetting weak new housing demand, while international profitability improved, especially in Europe and IMEA.
U.S. and China markets remained sluggish, but structural reforms and product focus are expected to yield results in the second half.
Interim dividend of ¥45 per share was resolved, with full-year earnings and dividend forecasts unchanged.
Financial highlights
Gross profit margin increased by 1.6 percentage points year-on-year to 34.2%, with gross profit rising to ¥251.9 billion.
Core earnings margin rose to 2.3% from 1.4% year-on-year; EBITDA margin improved to 7.9%.
EPS turned positive at ¥11.67, up ¥25.36 year-on-year.
Free cash flow remained positive at ¥13.3 billion, though operating cash flow declined due to higher inventories.
Cash and cash equivalents at period end were ¥118,916 million, up from ¥107,088 million year-over-year.
Outlook and guidance
Full-year revenue is forecast at ¥1,540,000 million, up 2.3% year-on-year, with core earnings expected to rise 11.7% to ¥35,000 million and profit projected at ¥8,000 million.
Full-year earnings and dividend forecasts remain unchanged, with interim dividend set at ¥45 per share and annual dividend forecast at ¥90 per share.
Japanese renovation sales are expected to drive second-half performance, supported by promotional efforts and government subsidies.
U.S. market is expected to gradually improve from structural reforms and price optimization, with profitability targeted around Q4 next year.
European market recovery anticipated from next year, with color products driving growth.
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