LIXIL Achieves 22.9% Surge in Core Earnings Driven by Robust Middle East Demand
Dubai, United Arab Emirates: LIXIL Corporation (TSE Code: 5938), a leading manufacturer of innovative water and housing products, has reported a significant increase in its financial performance for the fiscal year ending March 31, 2026. The company announced a 22.9% rise in core earnings, reaching ¥38.5 billion, attributed to strong international operations, particularly in the IMEA (India, Middle East, and Africa) region.
Strong Demand Fuels Growth
LIXIL’s performance was bolstered by robust demand across the Middle East and the ongoing success of the GROHE brand. The company noted that the IMEA region experienced substantial growth during the fiscal year, contributing positively to both revenue and profitability.
Kinya Seto, CEO of LIXIL, stated that despite a challenging business environment, the company achieved year-on-year growth in revenue and profit. He highlighted that core earnings surpassed initial forecasts, with Japan’s decline in new housing demand offset by an increase in renovation sales.
Financial Performance Overview
LIXIL’s consolidated revenue rose by 0.4% year-on-year to ¥1,510.7 billion. In Japan, the company capitalized on renovation demand for water products, benefiting from price optimization strategies. Although new housing starts declined, total revenue for the Japan business increased by 0.5% to ¥1,023.4 billion.
Internationally, revenue grew by 0.3% to ¥520.9 billion. Despite ongoing weak demand in the U.S. and China, LIXIL achieved growth through increased sales of fittings and faucets in Europe and by tapping into expanding markets such as the Middle East and India.
Core Earnings and EBITDA
Core earnings surged by 22.9% to ¥38.5 billion. The Japan segment faced challenges due to decreased new housing demand, but this was counterbalanced by a rise in renovation sales and effective price management. The international business saw a notable increase in core earnings, particularly in Europe and the Middle East, with the overall core earnings margin improving by 0.5 percentage points to 2.5%.
EBITDA, which includes core earnings plus depreciation and amortization, increased by ¥7.1 billion, reaching ¥121.6 billion.
Net Profit and Regional Performance
Net profit attributable to owners of the parent company was reported at ¥8.1 billion, reflecting an improvement of ¥6.1 billion despite rising expenses and finance costs. This growth was supported by enhanced core earnings and a reduction in corporate income tax expenses.
The IMEA region emerged as a standout performer, with revenue increasing by 15% and core earnings growing 4.3 times year-on-year, primarily driven by the strong performance of the GROHE brand. Revenue in Europe also grew by 4%, while the Asia-Pacific region remained flat. In contrast, revenue in the Americas declined by 4%, and revenue in China fell by 10% amid a downturn in the real estate sector.
Commitment to Sustainability and Innovation
LIXIL is dedicated to advancing environmentally friendly products that enhance profitability while mitigating supply chain risks. The company’s low-carbon aluminum solution, PremiAL, is gaining traction, and LIXIL is working on establishing a proprietary ecosystem for recycling aluminum scrap in collaboration with business partners.
Additionally, LIXIL continues to expand its product lineup for revia, a circular material made primarily from waste plastic, aligning with its broader sustainability goals.
Future Outlook and Dividend Forecast
Looking ahead to the fiscal year ending March 31, 2027, LIXIL anticipates generating revenue of ¥1,600 billion, core earnings of ¥45 billion, and a net profit of ¥12 billion. However, the forecast is subject to uncertainties, including geopolitical risks in the Middle East and potential supply chain disruptions.
LIXIL has maintained its year-end dividend forecast for fiscal year 2026 at ¥45 per share, with expectations for the annual dividend for fiscal year 2027 to remain unchanged at ¥90 per share.
About LIXIL
LIXIL is committed to creating pioneering water and housing products that address everyday challenges, enhancing the quality of homes globally. The company leverages its Japanese heritage to develop world-class technology and innovative solutions. Its portfolio includes leading brands such as INAX, GROHE, American Standard, and TOSTEM, with approximately 53,000 employees operating in over 150 countries.
About GROHE
GROHE is a prominent global brand offering complete bathroom solutions and kitchen fittings. Since joining LIXIL’s portfolio in 2014, GROHE has focused on delivering high-quality products based on values of quality, technology, design, and sustainability.
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Published on 2026-05-20 11:26:00 • By the Editorial Desk
