IMEA revenue increased 15%, with core earnings growing 4.3 times year-on-year
Strong demand across the Middle East and continued momentum for GROHE contribute to international profitability
LIXIL continues to strengthen supply chain resilience and expand sustainable product innovation
Dubai, United Arab Emirates; 20 May 2026: LIXIL Corporation (“LIXIL”, TSE Code: 5938), maker of pioneering water and housing products, announced its full-year results for the fiscal year ending March 31, 2026.
The company reported a 22.9% increase in core earnings to ¥38.5 billion and highlighted strong performance across its international operations. The IMEA (India, Middle East and Africa) region delivered significant growth during the fiscal year, with strong demand across the Middle East and the continued strong performance of the GROHE brand contributing to revenue and profitability improvements.
CEO Comment
“In the fiscal year ending March 2026, we achieved year-on-year growth in both revenue and profit despite the business environment remaining more challenging than anticipated. Core earnings exceeded our initial forecast. In Japan, the decline in new housing demand was offset by growth in renovation sales, which has been a continuous area of focus, and resulted in higher profits across all segments. In our international business, we achieved a significant improvement in core earnings, particularly in Europe and IMEA. Our strategic initiatives, including structural reforms and our shift to high-value-added products, are progressing and steadily yielding results.
Based on the LIXIL Playbook, which outlines our management direction, we have been building a business foundation resilient to external changes. To address geopolitical risks such as the current situation in the Middle East, we are enhancing our agility to respond proactively to changes through the optimization of our supply chain. Furthermore, we have been strategically advancing the development and sales expansion of environmentally friendly and circular products that contribute to improved profitability and mitigate some supply chain risks. These include ‘PremiAL’, a low-carbon aluminum made primarily from scrap aluminum, and ‘revia’, which is made primarily from waste plastic. While the future outlook remains uncertain, we will continue our transformation to strengthen our profitability and achieve sustainable growth.”
– Kinya Seto
Financial Highlights
Revenue
Consolidated revenue increased by 0.4% year on year to ¥1,510.7 billion. In Japan, LIXIL captured renovation demand for water products and saw the positive effects of price optimization, leading to increased sales. For housing products, while renovation sales increased, the decline in new housing starts had a negative impact. Total revenue for the Japan business increased by 0.5% to ¥1,023.4 billion.
Revenue from the international business increased by 0.3% year on year to ¥520.9 billion. Despite continued weak demand in the U.S. and China, the company achieved growth through increased sales of fittings and faucets in Europe and by capturing demand in growing markets such as the Middle East and India.
Core Earnings
Core earnings increased by 22.9% to ¥38.5 billion. While the Japan business was impacted by decreased new housing demand, this was offset by an increase in renovation sales and price optimization. The international business saw higher core earnings as the company continued to shift toward high-value-added products in Europe and the Middle East. The overall core earnings margin improved by 0.5 percentage points to 2.5%.
EBITDA
EBITDA (core earnings plus depreciation and amortization), which represents the earning power of the core business, increased by ¥7.1 billion to ¥121.6 billion.
Net Profit Attributable to Owners of the Parent
Net profit was ¥8.1 billion. Despite the impact of an increase in other expenses and finance costs, net profit improved by ¥6.1 billion, supported by improved core earnings and a decrease in corporate income tax expenses.
Strong Performance in IMEA
Revenue from LIXIL Water Technology’s international business remained flat year on year at ¥492.5 billion. However, core earnings saw a significant improvement, increasing by 31.2% to ¥21.8 billion, supported by sales growth in Europe and IMEA, along with an improved product mix.
The IMEA region delivered one of the strongest performances across LIXIL’s international operations, with revenue increasing by 15% while core earnings grew 4.3 times year on year, driven primarily by the continued strong performance of the GROHE brand. In addition to sustained revenue growth in India, strong demand continued across the Middle East.
By region, revenue in Europe grew by 4%, supported by strong sales of faucets and flushing systems. Revenue in the Asia-Pacific region remained flat. In the Americas, revenue declined by 4% due to a lack of recovery in the renovation market, while revenue in China decreased by 10% amid the continued downturn in the real estate sector.
Sustainable Innovation and Supply Chain Resilience
LIXIL continues to advance environmentally friendly products that contribute to improved profitability while helping mitigate supply chain risks.
The company’s low-carbon aluminum solution, PremiAL, is seeing a steady increase in adoption. LIXIL is also expanding its initiative to build a proprietary ecosystem for recycling aluminum scrap in collaboration with business partners.
In addition, the company continues to expand the product lineup for revia, its circular material made primarily from waste plastic, supporting its broader sustainability ambitions.
Full-Year Forecast for FYE2027
For FYE2027, LIXIL expects to generate:
Revenue of ¥1,600 billion
Core earnings of ¥45 billion
Net profit of ¥12 billion
Please note that the forecast is based on information currently available to the company and involves risks and uncertainties. Uncertainties such as heightened geopolitical risks in the Middle East, potential supply chain disruptions, soaring crude oil prices and rising costs of petroleum-based raw materials are not incorporated into the forecast because their financial impact is currently difficult to reasonably calculate.
Year-End Dividend Forecast
LIXIL maintains its FYE2026 year-end dividend forecast at ¥45 per share. The annual dividend for FYE2027 is expected to remain unchanged at ¥90 per share.
