Lixil Corporation · TSE:5938
Lixil — Q3 2026 Earnings Presentation
29 slides from Lixil's earnings presentation, Jan 30, 2026
Slide 1: Q3 Financial Results for the Fiscal Year Ending March 31, 2026
Q3 Financial Results for the Fiscal Year Ending March 31, 2026 [ IFRS ] (From April 1, 2025 to December 31, 2025) LIXIL Corporation January 30, 2026 TSE Code: 5938 Copyright © LIXIL Corporation. All rights reserved.
Slide 2: Key Highlights: Summary of results for Q3 FYE2026
KEY HIGHLIGHTS 1 Summary of results for Q3 FYE2026 Core earnings: JPY36.5 billion and EBITDA: JPY98.4 billion Japan • Both LWTJ and Living continue to see sluggish new housing demand, but renovation products remain strong. Both achieved YoY growth in revenue and core earnings • While demand for new
Slide 3: Key Highlights: FYE2027 Outlook, Business Environment
KEY HIGHLIGHTS 2 FYE2027 Outlook：Business Environment Overall Japan Americas ⚫ Commodity Prices: Rising/elevated ⚫ New housing: Construction starts ⚫ Housing market recovery remains aluminum and copper prices remain weak sluggish. Positive impact from ⚫ FX: Continued JPY weakness ⚫ Renovation: Growt
Slide 4: Q3 FYE2026 Performance Highlights
Q3 FYE2026 PERFORMANCE HIGHLIGHTS 3 Revenue decreased while core earnings increased year-on-year ◼ Revenue: JPY1,138.5 billion, down JPY2.0 billion year-on-year • Q3 (3 months) YoY: 0% in Japan and +2% in international markets (-3% excluding foreign exchange impact) • Q3 (9 months) YoY: +1% in Japan
Slide 5: Q3 FYE2026 Consolidated Business Results
Q3 FYE2026 CONSOLIDATED BUSINESS RESULTS 4 (1) (2) (3) ■ Gross profit margin: Increased by 1.3pp YoY ■ SG&A expenses: Increased by JPY8.7 billion YoY (Japan JPY6.7 billion increase, International JPY0.8 billion increase, forex effect JPY1.4 billion decrease) mainly due to higher personnel costs in J
Slide 6: Q3 FYE2026 Business Results by Segment
Q3 FYE2026 BUSINESS RESULTS BY SEGMENT 5 Core earnings increased for both LWT Japan and International, driven by strong profitability in Europe and the Middle East. LHT achieved flat sales and core earnings due to price optimization and renovation sales. Living achieved both revenue and core earning
Slide 7: Q3 FYE2026 Business Results by Segment (previous segments)
Q3 FYE2026 BUSINESS RESULTS BY SEGMENT 6 Business results for Q3 under previous reporting segments (2) (2) Forex impact(1) Q3 3months: Revenue +JPY6.8 billion, CE +JPY0.5 billion Q3 9months: Revenue +JPY3.8 billion, CE +JPY0.6 billion (1) Forex translation effect gain(loss) from international subsid
Slide 8: Consolidated Financial Position
CONSOLIDATED FINANCIAL POSITION 7 Total assets increased, driven by foreign exchange impacts on assets held in Europe. The equity ratio is 34.4% Mar-2025 Dec-2025 Mar-2025 Dec-2025 Mar-2025 Dec-2025
Slide 9: Cash Flow Status and Cash Balance
CASH FLOW STATUS AND CASH BALANCE 8 Operating cash flow declined due to an increase in accounts receivable and inventories. Free Cash Flow (FCF) remained positive (1) (2) (2) (3) (3) (4) (4) (1) (1) Includes discontinued operations (3) CAPEX = Purchase of property, plant and equipment + (2) “FCF” =
Slide 10: Results by Business Segment
RESULTS BY BUSINESS SEGMENT – Water Technology Business (LWT) – Housing Technology Business (LHT) – Living Business (Living) ⚫ Effective from Q1 FYE2026, established the new segment, “Living Business”, by integrating the kitchen and vanity business from the "Water Technology Business" and the wooden
Slide 11: Water Technology
WATER TECHNOLOGY 10 Japan revenue and core earnings increased driven by strong renovation sales. International core earnings rose as strong performance in Europe and the Middle East outweighed lower revenues in the Americas and China (1) Revenue Core earnings ◼ Japan: Revenue increased YoY on strong
Slide 12: International Water Technology Revenue by Region
INTERNATIONAL WATER TECHNOLOGY 11 REVENUE BY REGION Revenue by region YoY YoY (Management basis) (1) Q3 FYE2026 FYE2026 local currency local currency JPY billion Results basis Forecast basis Americas 113.8 -4% (2) +10% (3) Europe 131.2 +5% +5% IMEA (India, Middle East, Africa) 54.8 +15% +12% Asia Pa
Slide 13: Housing Technology
HOUSING TECHNOLOGY 12 In Japan, revenue declined, but core earnings increased as strong renovation sales offset a decline in new housing. International business: revenue and core earnings are flat, offset the sluggish demand in Thailand by expanding sales in India (1) Revenue Core earnings ◼ Revenue
Slide 14: Living
LIVING 13 Strong renovation sales led to increased revenue and core earnings Revenue Core earnings ◼ Revenue increased YoY, driven by strong growth in ◼ Core earnings increased YoY, driven by strong renovation renovation sales that offset remained slowdown from an unfavorable product mix. Additional
Slide 15: Appendix: Financial Data
> APPENDIX: FINANCIAL DATA 14
Slide 16: Revenue by Product and Service
REVENUE BY PRODUCT AND SERVICE 15 For LWT, sanitaryware and bathroom units were flat YoY. For LHT, housing sashes sales increased YoY due to growth in renovation. For Living, interior materials are struggling as high proportion of new housing starts JPY billion in % Quarterly YoY Full-year Q3 Q3 Seg
Slide 17: Strategy to Strengthen Japan's Renovation Sales
STRATEGY TO STRENGTHEN JAPAN’S RENOVATION SALES 16 Renovation sales ratio increased by 2.3pp. All segments saw an increase due to continued strong demand Q3 (9 months) Q3 (3 months) FYE2025 FYE2026 Increase FYE2026 YoY YoY JPY billion Results(1) Results /decrease Results Sales of renovation-related
Slide 18: Growth in International Water Technology Business
GROWTH IN INTERNATIONAL WATER TECHNOLOGY 17 BUSINESS Leveraging our brands, global structure for R&D, and roll-out of differentiated products, we are positioned for renewed growth by quickly responding to local needs(1) Q3 FYE2026 (9 months) Q3 FYE2026 (3 months) Intl. Intl. Americas Europe IMEA APA
Slide 19: Change in Revenue and Core Earnings (9 months)
Q3 (9MONTHS) FYE2026 18 CHANGE IN REVENUE AND CORE EARNINGS JPY billion YoY 0% 0% +1% Change -2.0 (-0.2%) Revenue 1,140.5 1,138.5 Japan +2% Japan 0% Japan +1% (Renovation +6%) (Renovation +6%) (Renovation +6%) (Others -2%) (Others -4%) (Others -3%) International -2% International +4% 0 Q3 FYE2025 LW
Slide 20: Change in Revenue and Core Earnings (3 months)
Q3 (3MONTHS) FYE2026 19 CHANGE IN REVENUE AND CORE EARNINGS JPY billion +1% +1% -2% Change +1.9(+0.5%) YoY Revenue 400.7 402.6 Japan -1% Japan +1% Japan -2% (Renovation +4%) (Renovation +13%) (Renovation +5%) (Others -7%) (Others -7%) (Others -8%) International +2% International +13% 0 Q3 FYE2025 LW
Slide 21: Other Income and Expenses, Finance Income and Costs
Q3 FYE2026 OTHER INCOME AND EXPENSES, FINANCE 20 INCOME AND COSTS (1) ◼ Other income includes: (1) One-time profit recognition in Q1 due to an equity-method affiliate conversion of an investment ◼ Other expenses include: (2) (2) Impairment losses on the IT (3) system (3) Costs from the withdrawal of
Slide 22: Results and Forecasts by Segment
RESULTS AND FORECASTS BY SEGMENT 21 (1) (1) (1) Difference between sum total of Japan and International in Revenue and Core earnings and “Total” is the amount of consolidation, adj. & others (2) Please refer to “Consolidated Financial Statements under IFRSs for the Year Ended March 31, 2025” disclos
Slide 23: Performance of Major International Subsidiaries
PERFORMANCE OF MAJOR INTERNATIONAL 22 SUBSIDIARIES ASB FYE2025 FYE2026 Q3 (ASD Holdings) Q3 (9 months) Q1 Q2 Q3 Q4 Full-year Q1 Q2 Q3 (USD million) (9 months) YoY Revenue 298 286 262 276 1,122 247 250 239 736 -13% Core earnings -12 -6 -13 -12 -44 -19 -16 -18 -52 - Core earnings margin - - - - - - -
Slide 24: Appendix: Business and ESG-Related Topics
APPENDIX: BUSINESS AND ESG-RELATED TOPICS 23
Slide 25: Business and ESG Related Topics
BUSINESS AND ESG RELATED TOPICS 24 Contribute to a Low-Carbon Society Expanding Impact Through and Circular Economy Partnerships First in Industry: Recipient of the Participation in the SWA (Sanitation and Water "Environmental Value Award" at the 7th Nikkei for All) 2025 Sector Ministers’ Meeting (4
Slide 26: Business and ESG Related Topics
BUSINESS AND ESG RELATED TOPICS 25 Solving Social Issues Through Innovation Enhancing Brand Value Through Sophisticated Design Bidet-specific nozzle wins Gold Top Prize at "bathtope" and other innovative products won Femtech Japan Award 2025 (1) major design awards globally and in Japan • Bidet-spec
Slide 27: Market Trends
MARKET TRENDS 26 Source：LME 3 months Trend of new housing starts in Japan Aluminum price trend (From Oct 2, 2023, to Jan 19, 2026) Annualized seasonally adjusted data 1,200 1,100 2023 2024 2025 (Unit: USD) 1,000 900 800 700 600 Oct 2023 - Mar 2024 Apr 2024 - Mar 2025 Apr 2025- Jan 2026 500 Copper pr
Slide 28: (Reference) LIXIL Transitioned to IFRS from FYE2016
(REFERENCE) LIXIL TRANSITIONED TO IFRS FROM FYE2016 27 CHANGE IN PROFIT LEVEL STRUCTURE IS AS SHOWN JGAAP IFRS (LIXIL Financial Reporting) Continuing operations Net sales Revenue Cost of sales Cost of sales Gross profit Gross profit SG&A SG&A Operating profit Core earnings (CE) Non-operating income/
Slide 29: Cautionary Statements with Respect to Forward-Looking Statements
Cautionary Statements with Respect to Forward-Looking Statements Statements made in these materials with respect to plans, strategies and future performance that are not historical facts are forward-looking statements. LIXIL Corporation cautions that a number of factors could cause actual results to