Lixil Corporation TSE:5938

LIXIL : Q3 Financial Results for the Fiscal Year Ending March 31, 2026 (From April 1, 2025 to December 31, 2025)

Published

Source: MarketScreener

Q3 Financial Results for the Fiscal Year Ending March 31, 2026 [ IFRS ]

(From April 1, 2025 to December 31, 2025)

TSE Code: 5938

LIXIL Corporation

January 30, 2026

Copyright © LIXIL Corporation. All rights reserved.



Summary of results for Q3 FYE2026

Core earnings: JPY36.5 billion and EBITDA: JPY98.4 billion

Japan

International

Others

  • 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 housing remained soft, significant sales growth of subsidy-eligible products contributed to LHT's profit. LHT matched last year's levels for revenue and core earnings

  • For the LWT international business, core earnings substantially improved, despite a decrease in revenue YoY. Strong performance continued in Europe, the Middle East, and India. Housing markets remain sluggish in the Americas and China

  • Financial costs increased YoY due to the recognition of losses on exchange

    differences

  • Similar to Q2, tax expense at consolidated subsidiary decreased YoY due to changes in the corporate tax rate in Germany

    KEY HIGHLIGHTS

    1



    FYE2027 Outlook：Business Environment

    Overall

    • Commodity Prices: Rising/elevated aluminum and copper prices

    • FX: Continued JPY weakness negatively impacting Japan business

    • Impact of government policies on

    easing housing supply constraints

    Japan

    • New housing: Construction starts remain weak

    • Renovation: Growth driven by stricter energy efficiency standards and ongoing window subsidies

    Strengthen the renovation business

    Americas

    • Housing market recovery remains sluggish. Positive impact from policy (such as curbing home price increases) is anticipated

    • Closely monitoring impact of interest rates and inflation on the housing market

    US business turnaround



    IMEA

    • Housing demand rising due to urban development and a growing middle class in India

    • Strong demand in the Middle East, as represented by Saudi Arabia

    Growth of the GROHE brand

    China and Asia Pacific

    • Continued sluggish housing market and potential impact of export VAT policy change in China

    • APAC is recovering, led by Vietnam. Thailand competition may ease post-China VAT refund abolition

    Expanding sales of differentiated products

    Europe

    • Although formulated the roadmap assuming full market recovery from FYE2027, timing of market recovery remains uncertain

    • Policy implementation in various countries is a cause for concern

Growth of the GROHE brand

KEY HIGHLIGHTS

2



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 and -2% in international markets (-3% excluding foreign exchange impact)

  • Core earnings: JPY36.5 billion, up JPY5.4 billion year-on-year

    • Q3 (3 months) YoY: -JPY0.2 billion in LWT, +JPY0.1 billion in LHT, -JPY0.2 billion in Living, and -JPY0.7 billion for consolidation adjustment/other factors

    • Q3 (9 months) YoY: +JPY6.3 billion in LWT, ＋JPY0.1 billion in LHT, +JPY0.6 billion in

      Living, and -JPY1.5 billion for consolidation adjustment/other factors

  • EBITDA(1): JPY98.4 billion, up JPY4.7 billion year-on-year

  • Profit(2): JPY11.8 billion, up JPY7.5 billion year-on-year

    • Q3 (3 months) YoY: Increased by JPY0.2 billion due to a decrease in income tax expenses, despite an increase in finance costs

    • Q3 (9 months) YoY: Increased by JPY7.5 billion due to an increase in core earnings and a decrease in income tax expenses, despite increase in other expenses and finance costs

  1. EBITDA=Core earnings + Depreciation + Amortization

  2. Profit = Profit attributable to owners of the parent

    Q3 FYE2026 PERFORMANCE HIGHLIGHTS

    3





    (1)

    (2)

  • 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 Japan. SG&A ratio increased by 0.8pp

  • CE margin: Increased by 0.5pp YoY

  1. Equivalent to "Operating profit" of JGAAP

  2. Profit attributable to owners of the parent

  3. EBITDA=Core earnings + Depreciation + Amortization

Q3 FYE2026 CONSOLIDATED BUSINESS RESULTS

4





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 earnings increases, supported by strong renovation sales

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 subsidiaries

  2. The segment breakdown has been changed from FYE2026. Please refer to the next page for the results under the former reporting segments

Q3 FYE2026 BUSINESS RESULTS BY SEGMENT

5



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 subsidiaries

  2. Includes consolidation adjustments resulting from the change from 2 reporting segments to 3 reporting segments

Q3 FYE2026 BUSINESS RESULTS BY SEGMENT

6



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

CONSOLIDATED FINANCIAL POSITION

7



Operating cash flow declined due to an increase in accounts receivable and inventories. Free Cash Flow (FCF) remained positive

(1)

(2)

(3)

(2)

(3)

(4) (4)

  1. Includes discontinued operations

  2. "FCF" = Operating CF + Investing CF

  3. CAPEX = Purchase of property, plant and equipment +

    Purchase of intangible assets (Excluding Right of use assets in IFRS16)

  4. "Others" = Effects of exchange rate changes

CASH FLOW STATUS AND CASH BALANCE

8



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 interior materials business from the "Housing Technology Business". These businesses share many similarities in terms of products, manufacturing processes, and business models.

  • In light of recent changes in the business environment and the increasing importance of India and the Middle East, which are experiencing particularly significant growth, the disclosure regions were changed to the following five.

    • Americas

    • Europe

    • IMEA (India, Middle East & Africa)

    • Asia Pacific

    • China



WATER TECHNOLOGY 10

Japan revenue and core earnings increased driven by strong renovation

(1)



sales. International core earnings rose as strong performance in Europe and the Middle East outweighed lower revenues in the Americas and China

Revenue

  • Japan: Revenue increased YoY on strong renovation sales

  • Int'l(2): Despite growth in Europe and the Middle East, revenue decreased YoY in both local currency and JPY terms mainly due to lower sales in the US and China attributed

    to continued sluggish demand, and the transfer of the bathing business in the US in the last fiscal year

  • Int'l revenue distribution ratio: 60.3%, down by 1.0pp YoY

    Core earnings

  • Japan: CE increased YoY driven by the impact of price optimizations and higher renovation sales

  • Int'l(2): CE increased YoY due to increased revenue in Europe and the Middle East, coupled with improved product mix driven by strong performance of color products

  • Int'l CE distribution ratio: 44.4%, up by 3.2pp YoY

    1. FYE2025 results include the US bathing business, which was transferred to the third-party in March 2025

    2. YoY vs Results excluding forex impact: Revenue -JPY11.6 billion, -3%, Core earnings +JPY3.1 billion, +27%



      Revenue by region (Management basis) (1)

      JPY billion

      Q3 FYE2026

      Results

      YoY

      local currency basis

      FYE2026

      Forecast

      YoY

      local currency basis

      Americas

      113.8

      -4% (

      2)

      +10%

      Europe

      131.2

      +5%

      +5%

      IMEA (India, Middle East, Africa)

      54.8

      +15%

      +12%

      Asia Pacific

      31.8

      0%

      +11%

      China

      29.4

      -11%

      +7%

      Adjustments

      3.3

      -

      511.0

      (+4% YoY)

      Water Technology International Business Total (Statutory basis) (1)

      364.3

      (-2% YoY)

-

JPY Local currency

INTERNATIONAL WATER TECHNOLOGY REVENUE BY REGION

11



Americas

declined

declined

  • Revenue declined due to a lack of recovery in the renovation market and the ERP system transition in Q1

  • Profitability improvement will be pursued by accelerating a shift in products and sales channel mix

Europe

increased

increased

  • Revenue grew, driven by higher sales volumes in key markets such as Germany and the Netherlands, in addition to Southern and Eastern Europe

  • Sales of color faucets remained strong; gradual sales recovery in almost all product categories drove profitability

IMEA

increased

increased

  • Revenue across all Middle East markets increased, driven by continued strong demand, in Saudi Arabia and other GCC countries

  • Revenue in India maintained increased YoY

Asia Pacific

declined

flat

  • Vietnam's revenue increased, driven by retail business recovery and promotion initiatives

  • Thailand's revenue declined due to project delays caused by sluggish demand and oversupply

China

declined

declined

  • Ongoing challenges in the real estate sector continue, suppressing a recovery in consumer demand

  • GROHE brand sales improved, while other brands continued to underperform due to intense competition

(

(

(

  1. Statutory basis

  2. With the trans

  3. The revenue g revenue YoY w

currency: Q3 fer of US bath rowth rate fo ould be -1%

FYE2026 res ing business recast is calc

ults 1USD=JPY149.33, 1EUR=JPY171.84 Management basis currency: FYE2026 1USD=JPY155.0, 1EUR=JPY161.2

, we have excluded its sales from FYE2025 results. Including its sales from FYE2025, sales YoY would be -13% ulated excluding the impact of the US bathing business transfer. Including the bathing business in FYE2025 results,



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

Revenue

(1)

Core earnings

  • Revenue slightly declined YoY as strong renovation sales offset the slight decline in sales for new housing

  • CE remained flat YoY, driven by remodeling sales remained strong, price optimization, and inventory valuation gains. This offset the decline in new housing sales and cost associated with the ceramic siding business in Q2

  • Improved profitability in the building business

    1. Q3 FYE2026 Results (Reference)

      LHT excl. building business Revenue JPY330.6billion, CE JPY17.9 billion, CE margin 5.4% Building business Revenue JPY73.8 billion, CE JPY6.6 billion, CE margin 9.0%

      HOUSING TECHNOLOGY

      12



      Strong renovation sales led to increased revenue and core earnings



      Revenue

      • Revenue increased YoY, driven by strong growth in renovation

        Core earnings

      • Core earnings increased YoY, driven by strong renovation sales that offset remained slowdown from an unfavorable product mix. Additionally, effective price optimization mitigated the impact of rising raw material and component costs

Kitchen Richelle Vanities Lumisis Wooden interior materials Lasissa



LIVING

13



APPENDIX: FINANCIAL DATA

14

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 %

Full-year FYE2025

Results

Q3 FYE2025

Results

Q3 FYE2026

Results

Segments

Major products

YoY

LWT

Sanitaryware** (1)

115.2

85.4

88.2

+3.2%

Bathroom Units

92.4

70.4

71.9

+2.1%

Tiles

30.2

22.7

22.1

-2.4%

LHT

Housing sashes and others

187.9

147.6

150.1

+1.7%

Exterior

94.5

71.9

72.9

+1.4%

LHT others

38.7

29.4

28.7

-2.4%

Building sashes

101.0

75.5

73.8

-2.2%

Housing and Services business

19.0

14.4

12.9

-10.4%

Living

Kitchens

100.4

75.3

77.2

+2.6%

Vanities (1)

36.6

27.4

27.9

+1.8%

Wooden interior materials

57.2

43.2

42.6

-1.2%

International (2)

519.4

392.1

385.1

-1.8%

Others/consolidation & Adj.

112.2

85.2

84.9

-

Total

1,504.7

1,140.5

1,138.5

-0.2%

Quarterly YoY

FYE2025

FYE2026

Q1

Q2

Q3

Q4

Q1

Q2

Q3

+5.7

+8.7

+10.9

+6.9

+8.6

+2.5

-0.4

+4.2

+0.6

+4.5

+1.6

+6.3

-0.1

+0.3

-0.9

-6.2

-3.1

-3.0

-2.6

-0.5

-3.8

+1.3

-5.4

+5.6

+4.5

+0.6

-0.5

+4.7

-0.5

-3.4

-2.1

+5.5

+3.7

+1.3

-0.8

-12.1

-13.3

-8.5

+1.2

+1.4

-0.6

-7.8

+2.0

+8.0

-6.1

+1.9

-9.3

-2.2

+3.7

-26.7

-25.0

-1.7

-8.0

-6.8

-11.1

-12.9

+2.3

+1.0

+2.5

+4.7

+6.8

+1.4

-0.1

-5.8

-6.4

-4.7

-7.0

+3.4

+1.4

+0.8

-3.7

-4.9

-2.2

+0.7

+3.0

-2.4

-3.8

+9.9

+1.2

+5.7

-2.5

-8.5

+1.0

+2.4

+3.0

-0.8

+2.6

+1.1

-1.4

+0.3

+0.5

（Reference）**Sale of Faucets included in "Sanitaryware"

LWT

Faucets

28.0

20.3

21.8

+7.1%

-0.3

+15.3

+10.7

+8.5

+16.0

+4.3

+2.4

  1. The internal product categorization for sales of sanitaryware and vanities has changed from Q1 FYE2025. For the percentage increase/ decrease in

    FYE2025, please refer to the past Financial Results for the Fiscal Year Ended March 31, 2025

  2. Please refer to p.17 for the revenue of water-related products in international business

REVENUE BY PRODUCT AND SERVICE

15



Q3 (9 months)

Q3 (3 months)

JPY billion

FYE2025

Results(1)

FYE2026

Results

Increase

/decrease

YoY

FYE2026

Results

YoY

Sales of renovation-related products

291.6

309.3

+17.7

+6.1%

115.7

+8.2%

LWT-J

+6%

+4%

LHT

+6%

+13%

Excl. building

+7%

+12%

Building business

+3%

+17%

Living

+6%

+5%

Renovation sales ratio

46%

48%

+2.3pp

50%

+3.4pp

Renovation sales ratio increased by 2.3pp. All segments saw an increase due to continued strong demand

Renovation sales ratio by business

Inner window In-plus

segment (YoY)

Q3 FYE2025 Q3 FYE2026

Increase



/decrease

LWT

55%

57%

+1.9pp

LHT

41%

44%

+2.5pp

Living

47%

49%

+2.1pp

Japan

46%

48%

+2.3pp

(1) Sales of renovation product was restated for comparison on the same basis

STRATEGY TO STRENGTHEN JAPAN'S RENOVATION SALES

16



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.

Total

Americas

Europe

IMEA

APAC

China

Intl.

Total

Americas

Europe

IMEA

APAC

China

Sales distribution ratio

Bath faucets and showers

42%

13%

60%

61%

35%

50%

42%

13%

60%

60%

35%

51%

Toilets

43%

66%

24%

35%

61%

38%

43%

67%

24%

36%

61%

35%

Kitchen faucetsand water systems

9%

5%

16%

4%

3%

5%

9%

6%

16%

3%

2%

5%

Bathing and showering systems

4%

13%

0%

0%

1%

1%

4%

12%

0%

0%

1%

0%

All others

2%

3%

1%

0%

1%

7%

2%

3%

0%

1%

1%

9%

Total

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

Sales growth

Bath faucets and showers

+2%

-10%

+2%

+15%

+4%

-6%

0%

-6%

+1%

+9%

+2%

-13%

Toilets

+2%

+1%

+10%

+18%

-2%

-21%

+2%

+3%

+9%

+21%

-5%

-32%

Kitchen faucetsand water systems

+5%

-2%

+7%

+11%

+27%

-9%

+7%

+13%

+8%

+9%

-6%

-19%

Bathing and showering systems

-23%

-23%

-11%

-23%

-2%

+14%

-21%

-21%

+1%

-29%

-14%

-48%

(1) See also, p.27, 29-32,74 of our INTEGRATED REPORT 2025, for progress of "Grow Global Water Business" in the LIXIL Playbook https://ssl4.eir-parts.net/doc/5938/ir_material_for_fiscal_ym41/181197/00.pdf#page=28

GROWTH IN INTERNATIONAL WATER TECHNOLOGY BUSINESS

17



Revenue

JPY billion

YoY

Japan

(Renovation +6%)

+2%

(Others

-2%)

International -2%



+1%

0%

0%

Change

-2.0 (-0.2%)

1,140.5

0 Q3 FYE2025

Japan 0%

(Renovation +6%)

(Others -4%)

International +4%

LWT +6.6

LHT +7.0

Living +1.3

LWT LHT

Japan +1%

(Renovation +6%)

(Others -3%)

Living

Consolidation

1,138.5

Q3 FYE2026

Core earnings

JPY billion LWT -1.1 LHT +0.2

Living 0

Material price -8.3

LWT -1.8

LHT -5.1

Living -1.4

Cost reduction +2.7

LWT 0

LHT +1.8

Living +0.9

adjustment/ other

Change

+5.4 (+17.5%)

31.1

CE

Margin 2.7%

Activity costs and other costs

LWT -1.1

LHT -3.7

Living -0.3

LWT Intl. +3.7

LHT Intl. -0.1

(Reference) GROHE +7.1

ASB -2.9

Others -0.6

36.5

CE

Margin 3.2%

Q3 FYE2025

Sales in Japan Mix/pricing Cost

SG&A

International Consolidation business adjustment/

Q3 FYE2026

Japan +3.4(+7%)

Int'l +3.5(+28%)

others

Full-year forecast (progress rate)

+3.5 (-)

+20.4

(73%)

-9.4

(59%)

-7.7

(66%)

+3.7

(97%)

-6.8

(22%)

Q3 (9MONTHS) FYE2026

CHANGE IN REVENUE AND CORE EARNINGS

18



Revenue

JPY billion

YoY



Japan -1%

(Renovation +4%)

(Others -7%)

International +2%

-2%

+1%

+1%

Change

+1.9(+0.5%)

400.7 402.6

0 Q3 FYE2025

Japan +1%

(Renovation +13%)

(Others -7%)

International +13%

LWT LHT

Material price -3.0

LWT -0.5

LHT -1.7

LWT +2.0

LHT +1.9

Living +0.6

Living -0.8

Cost reduction +0.6

Japan -2%

(Renovation +5%)

(Others -8%)

Living

LWT Intl. -1,0

LHT Intl. +0.1

Consolidation adjustment/ other

Q3 FYE2026

Core earnings

JPY billion LWT -0.7

LHT +1.1

Living -0.5

LWT +0.1

LHT -0.1

Living +0.6

(Reference)

-0.9(-4.5%)

Change

GROHE +0.8

ASB -0.8

Others -0.8

20.6

CE

Margin 5.1%

Activity costs and other costs

LWT -0.1

LHT -1.1

Living -0.1

19.6

CE

Margin 4.9%

Q3 FYE2025

Sales in Japan

Mix/pricing Cost

SG&A

International business

Consolidation adjustment/

others

Q3 FYE2026

Japan +0.6(+2%) Int'l -0.8(-15%)

Q3 (3MONTHS) FYE2026

CHANGE IN REVENUE AND CORE EARNINGS

19



(1)

(2)

(3)

  • Other income includes:



  1. One -time profit recognition in Q1 due to an equity-method affiliate conversion of an investment

    • Other expenses include:

  2. Impairment losses on the IT system

  3. Costs from the withdrawal of LHT's ceramic siding business and the reorganization of European bases

    • Losses on exchange differences: due to recent currency fluctuations

Q3 FYE2026 OTHER INCOME AND EXPENSES, FINANCE

INCOME AND COSTS

20





(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" disclosed on Apr. 30, 2025, for the FYE2025 results under the new reporting segments

    RESULTS AND FORECASTS BY SEGMENT

    21



    ASB

    (ASD Holdings)

    (USD million)

    FYE2025

    FYE2026

    Q3

    (9 months) YoY

    Q1

    Q2

    Q3

    Q4

    Full-year

    Q1

    Q2

    Q3

    Q3

    (9 months)

    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

    -

    -

    -

    -

    -

    -

    -

    -

    -

    -

    Grohe Group (GROHE)

    (EUR million)

    FYE2025

    FYE2026

    Q3

    (9 months) YoY

    Q1

    Q2

    Q3

    Q4

    Full-year

    Q1

    Q2

    Q3

    Q3

    (9 months)

    Revenue

    Core earnings

    390

    20

    393

    39

    412

    44

    406

    47

    1,601

    150

    417

    51

    425

    44

    414

    45

    1,256

    141

    +5%

    +36%

    Core earnings

    margin

    5%

    10%

    11%

    12%

    9%

    12%

    10%

    11%

    11%

    +2.5pp

    ASB (ASD Holdings)

    (USD million)

    FYE2025

    Balance

    Q3 FYE2026

    Balance

    Goodwill(1)

    Intangible assets(1)

    225

    221

    225

    217

    Grohe Group (GROHE)

    (EUR million)

    FYE2025

    Balance

    Q3 FYE2026

    Balance

    Goodwill(1)

    1,199

    1,184

    Intangible assets(1)

    1,382

    1,374

    Q3 FYE2026

    FX rates

    Average

    Current

    USD

    JPY149.33

    JPY156.56

    EUR

    JPY171.84

    JPY184.33

    1. Please refer to p42-48 of the FYE2025 Consolidated Financial Statements "14. Goodwill and Other Intangible Assets" for assessment

      of goodwill and intangible assets https://ssl4.eir-parts.net/doc/5938/ir_material_for_fiscal_ym35/183023/00.pdf#page=54

      PERFORMANCE OF MAJOR INTERNATIONAL SUBSIDIARIES

      22



      APPENDIX: BUSINESS AND ESG-RELATED TOPICS

      23

      Contribute to a Low-Carbon Society and Circular Economy

      First in Industry: Recipient of the "Environmental Value Award" at the 7th Nikkei SDGs Management Awards (1)



      • LIXIL was awarded the "Environmental Value Award" at the 7th Nikkei SDGs Management Awards-an industry-first for the housing equipment and building materials sector

      • The award recognizes initiatives addressing critical themes, including climate change, resource circulation, and biodiversity

      • LIXIL was noted for its initiatives to reduce its society-wide environmental impact through solutions such as PV roll-up screens (2) and FRP material recycling (3)

        1. News release https://newsroom.lixil.com/ja/2025112899 (JP only)

        2. News release https://newsroom.lixil.com/ja/2025041401 (JP only)

          Expanding Impact Through Partnerships

          Participation in the SWA (Sanitation and Water

          for All) 2025 Sector Ministers' Meeting (4)



          • LIXIL CEO Seto serves as the first-ever private sector member of the SWA Global Leadership Council, following his appointment in 2023

          • Attending the Sector Ministers' Meeting in October 2025, he emphasized the need for sustainable business models that go beyond product provision. He also discussed the importance of robust public-private partnerships to accelerate global solutions to sanitation and water availability for all

  3. News release https://newsroom.lixil.com/ja/2025011501 (JP only)

  4. Website https://www.lixil.com/en/impact/sanitation/partnerships.html

BUSINESS AND ESG RELATED TOPICS

24



Solving Social Issues Through Innovation

Bidet-specific nozzle wins Gold Top Prize at Femtech Japan Award 2025 (1)

Enhancing Brand Value Through Sophisticated Design

"bathtope" and other innovative products won



major design awards globally and in Japan



  • Bidet-specific nozzle (2) won the top gold prize, recognizing our commitment to hygiene and the needs of female users. The award highly evaluated the design for addressing hygiene concerns by providing separate nozzles

  • The nozzle is now provided across all our Shower Toilet models, demonstrating our commitment to women's health issues and promoting awareness activities across various generations

  • Leveraging the diverse insights of our employees and fostering internal and external collaboration, we address a wide range of needs. Through these initiatives, we contribute to healthy and comfortable lifestyles for all

  1. News release https://newsroom.lixil.com/ja/2025121801 (JP only)

  2. Website https://www.lixil.co.jp/lineup/toiletroom/s/2nozzle/ (JP only)

    • Establishing a global network of eight Design Centers and integrating designers from the upstream stages of product development. High-design product lineups, led by a fabric-lined bathtub "bathtope" launched in Japan, driving the enhancement of brand value

    • Major Awards

      -Good Design Award 2025: 8 products awarded (3)

      -German Design Award 2026: 10 products awarded (4)

      -JIDA Design Museum Selection Vol. 27: 2 products awarded (5)

  3. News release https://newsroom.lixil.com/ja/2025101599 (JP only)

  4. News release https://newsroom.lixil.com/ja/2025112501 (JP only)

  5. News release https://newsroom.lixil.com/ja/2025112802 (JP only)

BUSINESS AND ESG RELATED TOPICS

25



Trend of new housing starts in Japan

Annualized seasonally adjusted data

2023 2024 2025



1,200

1,100

1,000

900

800

700

Aluminum price trend

Source：LME 3 months

(From Oct 2, 2023, to Jan 19, 2026)

(Unit: USD)

600

Oct 2023 - Mar 2024

Apr 2024 - Mar 2025

Apr 2025- Jan 2026



500

400

(Unit: thousand) JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Source：Statistics of new housing starts, Ministry of Land, Infrastructure,

Transport and Tourism (Jan 2023-Nov 2025)

Copper price trend

Source：LME 3 months

(From Oct 2, 2023, to Jan 19, 2026)



(Unit: USD)

（year-on-year）

New housing construction trends in Japan

  • Jan-Sep 2025: -8.0%

  • Jan-Nov 2025: -7.0%

Oct 2023 - Mar 2024

Apr 2024 - Mar 2025

Apr 2025- Jan 2026

Foreign

exchange rates

(Average rate)

FYE2024

Actuals

FYE2025

Actuals

FYE2026

Assumptions

US dollar

JPY144.40

JPY152.48

JPY155.0

Euro

JPY156.80

JPY163.62

JPY161.2

Jan-Nov 2025

(11 months)

Apr-Nov 2025

(8 months)

Units

YoY

Units

YoY

Total

new housing starts

678,549

-7.0%

472,030

-13.7%

Owner-

occupied(1)

183,789

-8.3%

131,037

-14.1%

Rental homes

299,473

-5.1%

206,636

-13.1%

Condos for sale

82,153

-13.4%

53,873

-22.4%

Detached houses for sale(2)

105,297

-4.9%

74,381

-8.2%

Detached

houses total (1)+(2)

289,086

-7.1%

205,418

-12.1%

(JPY per tonne)

Results and assumptions (price)

FYE2024

Actuals

FYE2025

Actuals

FYE2026

Assumptions

Aluminum

(Purchasing price)

335,000

398,000

448,000

Copper alloy

1,009,000

1,170,000

1,262,000

MARKET TRENDS

26



JGAAP

Net sales

Cost of sales Gross profit SG&A

Operating profit

Non-operating income/expenses

Ordinary income

Extraordinary income/loss

Profit before income taxes

Net profit attributable to Non-controlling interests Owners of the parent

IFRS (LIXIL Financial Reporting)

Continuing operations Revenue

Cost of sales Gross profit SG&A

Core earnings (CE)

Other income/expenses Operating profit Finance income/costs

Share of profit (loss) of investments accounted for using equity method

Profit before tax

Profit from continuing operations

Discontinued operations

Profit for discontinued operations Profit attributable to

Owners of the parent

Non-controlling interests

"Core earnings" in IFRS is equivalent to JGAAP's "Operating profit"

(REFERENCE) LIXIL TRANSITIONED TO IFRS FROM FYE2016 CHANGE IN PROFIT LEVEL STRUCTURE IS AS SHOWN

27





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 differ materially from those discussed in the forward-looking statements.