- LIXIL Water Technology (LWT) international business core profit significantly improved; despite the residential demand not yet fully recovering, strong revenue growth was achieved in Europe and the IMEA (India, Middle East, and Africa) regions.
- In the Japanese market, home renovation business grew, with Water Technology and high-insulation products performing exceptionally well, effectively offsetting the impact of declining demand for new housing construction.
- Deepening the differentiated recycled materials strategy to proactively address rising costs and supply chain risks.
ShanghaiApril 30, 2026 /PRNewswire/ — On April 30, 2026, LIXIL Group (hereinafter referred to as “LIXIL”), a global leader in the sanitary ware and home improvement industry, announced its fiscal year 2026 financial results (for the year ended March 31, 2026).
LIXIL Group President and CEO Kinya Seto stated: “In fiscal year 2026, despite a more challenging market environment than anticipated, we achieved growth in both revenue and profit, with core profit exceeding our initial expectations. In our international business, core profit significantly improved, particularly in Europe and the IMEA region. As our structural reforms and strategic shift towards high-value-added products steadily progress, our various initiatives are consistently delivering results. In the Japanese market, the renovation business, a key focus area, saw sales growth that offset the impact of the slowdown in new housing construction, driving profit growth across all business segments.
Guided by the LIXIL Playbook management policy, we remain committed to building a resilient business foundation capable of withstanding external environmental changes. In response to the current international situation and geopolitical risks, we are enhancing our agility and response capabilities by optimizing our supply chain. Furthermore, we are strategically advancing the development and sales expansion of environmentally friendly and circular products to improve profitability and partially mitigate supply chain risks. These initiatives include ‘PremiAL,’ a low-carbon aluminum material primarily made from scrap aluminum, and ‘revia,’ primarily made from waste plastics. Although uncertainties remain, we will persist with our transformation, further strengthen profitability, and achieve sustainable growth.”
Financial Highlights
Revenue and Core Profit
LIXIL’s consolidated revenue for fiscal year 2026 was 1,510.7 billion yen, a year-on-year increase of 0.4%. Core profit was 38.5 billion yen, a year-on-year increase of 22.9%.
International business revenue was 520.9 billion yen, a year-on-year increase of 0.3%, with the core profit margin improving by 0.5 percentage points to 2.5%. International market revenue and core profit both grew, driven primarily by sales growth of hardware fittings and faucet products in Europe, as well as demand expansion in high-growth markets such as the Middle East and India. Additionally, the ongoing shift towards high-value-added product portfolios in Europe and the Middle East further enhanced profitability.
Japan market business revenue was 1,023.4 billion yen, a year-on-year increase of 0.5%. Overall sales grew due to capitalizing on opportunities in the renovation business for Water Technology products and benefiting from price optimization measures. In the Housing Technology segment, sales growth in the renovation business offset the negative impact of the slowdown in new housing construction.
International Water Technology business revenue was 492.5 billion yen, roughly flat compared to the same period last year. Benefiting from sales growth and an optimized product mix in Europe and the IMEA region, core profit significantly improved, increasing by 31.2% year-on-year to 21.8 billion yen. In Europe, revenue grew by 4% and core profit by 15%, with strong performance in faucet and flushing system businesses, and steady sales volume increases in core markets like Germany. The IMEA region saw revenue growth of 15%, with core profit reaching 4.3 times that of the same period last year. In addition to continued revenue growth in India, demand in the Middle East market remained strong. In the Americas, despite a recovery in retail sales, revenue declined by 4% due to the sluggish recovery of the home renovation market. However, thanks to the effects of structural reforms, the Americas business achieved a core profit turnaround in the single month of March. Revenue in the Asia-Pacific region was roughly flat. In Greater China, affected by adjustments in the real estate market, Water Technology business revenue decreased by 10% year-on-year, while the GROHE business performed well with an 11% revenue increase; overall market demand awaits recovery.
Driven by strong sales in the renovation business, Japan market Water Technology business revenue was 318.6 billion yen, a year-on-year increase of 2.1%. Benefiting from revenue growth and the positive impact of price optimization measures, core profit was 23.6 billion yen, a year-on-year increase of 16.8%. The proportion of sales revenue from the renovation business increased by 1.8 percentage points to 57%.
EBITDA
As an indicator reflecting the company’s core business profitability, EBITDA (core profit plus depreciation and amortization) for fiscal year 2026 reached 121.6 billion yen, an increase of 7.1 billion yen year-on-year.
Net Profit Attributable to Owners of the Parent
Net profit was 8.1 billion yen. Despite being affected by increases in other expenses and financial costs, net profit increased by 6.1 billion yen year-on-year, driven by improved core profit and a reduction in corporate income tax expenses.
Fiscal Year 2027 Business Forecast
LIXIL forecasts revenue of 1.6 trillion yen, core profit of 45 billion yen, and net profit of 12 billion yen for fiscal year 2027 (April 2026 to March 2027).
*Please note that the above forecasts are based on information currently available to the company and involve certain risks and uncertainties. Due to the difficulty in reasonably estimating their specific financial impact at this time, the following uncertainties have not been incorporated into this forecast: including heightened geopolitical risks in the Middle East, difficulties in procuring raw materials due to supply chain disruptions, and soaring crude oil prices and rising costs of petroleum-based raw materials.
About LIXIL
LIXIL is a global leader in sanitary ware and home improvement, dedicated to enabling people around the world to have a better home, no matter where they are. Consumer-centric, LIXIL continuously innovates, pioneers, and leads the company forward with a long-term perspective and a commitment to sustainable development. The LIXIL Group portfolio includes several historically renowned global brands such as GROHE, GROHE SPA, American Standard, INAX, and LIXIL Kitchen. Today, LIXIL operates in 150 countries, employs over 53,000 people, and its products benefit more than 1 billion consumers worldwide.
“LIXIL” Group (Tokyo Stock Exchange code: 5938) is the listed holding company of the “LIXIL” portfolio.