LIXIL (5938) Q4 2026 earnings summary

Executive summary

• Revenue for FY ending March 2026 was JPY 1,510.7 billion, up JPY 6 billion year-over-year, with core earnings of JPY 38.5 billion and EBITDA of JPY 121.6 billion, both exceeding forecasts.

• All Japan segments and international business achieved year-over-year growth in core earnings, driven by strong renovation sales and structural reforms, despite declines in new housing demand.

• Profit attributable to owners of the parent rose to JPY 8.1 billion, up JPY 6.1 billion year-over-year, mainly due to lower tax expenses at an international subsidiary.

• Structural reforms and supply chain optimization, especially in the Americas, contributed to profitability despite additional restructuring costs and impairment losses.

• Operating profit declined 4.3% year-over-year to JPY 28.4 billion due to higher "other expenses" from additional structural reforms.

Financial highlights

• Gross profit margin increased by 1.0pp year-over-year to 34.1%, with gross profit at JPY 515.2 billion.

• Core earnings margin rose to 2.5%, up 0.5pp year-over-year.

• EPS increased to JPY 28.33, up JPY 21.36 year-over-year.

• Free cash flow remained positive at JPY 59.1 billion, despite a decline in operating cash flow due to higher accounts receivable and inventories.

• Equity ratio improved to 35.3%.

Outlook and guidance

• FY ending March 2027 forecast: revenue JPY 1.6 trillion, core earnings JPY 45 billion, profit attributable to owners JPY 12 billion, and operating profit JPY 37.5 billion.

• Annual dividend forecast maintained at JPY 90 per share.

• Guidance excludes potential impacts from Middle East instability and commodity price volatility, which will be factored in future updates.

• Management expects continued growth in renovation sales in Japan and further profitability improvements in international markets.