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Financial results presentation5332TOTO LTD.Construction and Materials

First-Quarter Financial Results Presentation for the Fiscal Year Ending March 2027

In Q1 FY2027, revenue increased by ¥2.9 billion year on year, partly driven by foreign exchange movements, while operating profit decreased by ¥100 million. Japan Housing Equipment and Overseas Housing Equipment reported lower profits, while the New Businesses segment reported higher profits. Overall, progress was broadly in line with the plan.

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Direction
Mixed performance
Direction inferred from the company’s description.
Scale
29
¥100 million (year-on-year change in revenue)
Wording
Conditional
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Contents of this document

Financial results presentationFirst quarter of the fiscal year ending March 202710 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales1,686 Hundreds of millions of yen+2.0%
Operating profit81 Hundreds of millions of yen-2.0%
Ordinary income94 Hundreds of millions of yen+7.0%
Net income¥69 100 million +10.0%quarterly net income attributable to owners of the parent
Operating profit margin4.8%, down 0.2 percentage points year on year
Results for the three months of the current quarterRevenue: ¥168.6 billion; operating profit: ¥8.1 billion; ordinary profit: ¥9.4 billion; quarterly net profit attributable to owners of the parent: ¥6.9 billion
Full-year earnings forecast
Net Sales
7,850 Hundreds of millions of yen
Operating profit
600 Hundreds of millions of yen
Ordinary income
585 Hundreds of millions of yen
Profit attributable to owners of the parent
460 Hundreds of millions of yen
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Progress was broadly in line with the plan. Japan Housing Equipment revenue was in line with the plan and operating profit was above plan. Overseas Housing Equipment revenue and operating profit were both in line with the plan. New Businesses fell short of its Q1 plan.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Cost reductions and other factors+¥3.9 billion
  • Impact of higher prices for raw materials, electronic components, resins and other items-¥2.6 billion
  • Impact of tensions in the Middle East on resultsApproximately -¥3.0 billion (operating profit)
  • Effects of price revisions and other factors+¥2.5 billion
  • Other factors-¥2.4 billion, -¥2.1 billion, -¥300 million, ±¥0, -¥0, +¥200 million, +¥600 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Foreign exchange rates (period averages): ¥159.6 per US dollar, ¥23.5 per yuan, ¥185.4 per euro, ¥5.1 per Taiwan dollar, ¥0.0061 per dong, ¥4.9 per Thai baht and ¥1.7 per Indian rupee. The assumptions also include semiconductor demand, inventory adjustments and supply chain conditions.
New initiatives
  • Japan Housing Equipment: price revisions for orders received from 1 December 2026, with average increases of 8–13% by product
  • Ceramics business: construction of a new Chigasaki Plant and R&D building, scheduled to begin in December 2026 and be completed in April 2028
  • Ceramics business: approximately ¥30 billion in growth investments for production expansion and next-generation product development
  • Mainland China business: business structure reforms including plant closures and workforce optimisation
Key KPIsA metric the company considers important as a management benchmark.
  • Existing-home sales in the Americas99 Year-on-year %
  • Washlet unit sales in the Americas (Q1 FY2026)88 Year-on-year %
  • Washlet unit sales in the Americas (Q2 FY2026)120 Year-on-year %
  • Washlet unit sales in Asia (Q2 FY2026)118 Year-on-year %
  • Europe WASHLET unit sales123 Index Q1 2025=100
  • Washlet unit sales in mainland China (Q2 FY2026)104 Year-on-year %
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Washlet unit sales are provided for the Americas, Asia, Europe and mainland China, among other regions, but the breakdown by unit price is not disclosed
Segment results
  • Japan Housing Equipment
    Net Sales1,056 Hundreds of millions of yen (YoY -3.0%)
    Operating profit6 Hundreds of millions of yen (YoY -46.0%)
  • Overseas Housing Equipment
    Net Sales470 Hundreds of millions of yen (YoY +11.0%)
    Operating profit16 Hundreds of millions of yen (YoY -9.0%)
  • New Businesses (Ceramics)
    Net Sales160 Hundreds of millions of yen (YoY +6.0%)
    Operating profit65 Hundreds of millions of yen (YoY +10.0%)
  • Other
    Net Sales1 Hundreds of millions of yen
    Operating profit-6 Hundreds of millions of yen
Financial targets
FY2027 targets: ROA 7.2%, ROE 8.5%, TOTO ROIC 8.6%
Market Size / Share
Existing-home sales in the United States: 99% year on year. Market share figures are not disclosed
Capital expenditures
¥300 100 million growth investment in the Ceramics business, announced in April 2026
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFirst quarter of the fiscal year ending March 2027
Net Sales1,686 Hundreds of millions of yen (YoY +2.0%)
Operating profit81 Hundreds of millions of yen (YoY -2.0%)
Ordinary income94 Hundreds of millions of yen (YoY +7.0%)
Net income¥69 100 million (quarterly net income attributable to owners of the parent) (YoY +10.0%)
Operating profit margin4.8%, down 0.2 percentage points year on year
Results for the three months of the current quarterRevenue: ¥168.6 billion; operating profit: ¥8.1 billion; ordinary profit: ¥9.4 billion; quarterly net profit attributable to owners of the parent: ¥6.9 billion
Full-year earnings forecastNet Sales 7,850 Hundreds of millions of yen / Operating profit 600 Hundreds of millions of yen / Ordinary income 585 Hundreds of millions of yen / Profit attributable to owners of the parent 460 Hundreds of millions of yen
Self-assessment against the planProgress was broadly in line with the plan. Japan Housing Equipment revenue was in line with the plan and operating profit was above plan. Overseas Housing Equipment revenue and operating profit were both in line with the plan. New Businesses fell short of its Q1 plan.
Segment resultsSegment Japan Housing Equipment / Net Sales 1,056 Hundreds of millions of yen (YoY -3.0%) / Operating profit 6 Hundreds of millions of yen (YoY -46.0%), Segment Overseas Housing Equipment / Net Sales 470 Hundreds of millions of yen (YoY +11.0%) / Operating profit 16 Hundreds of millions of yen (YoY -9.0%), Segment New Businesses (Ceramics) / Net Sales 160 Hundreds of millions of yen (YoY +6.0%) / Operating profit 65 Hundreds of millions of yen (YoY +10.0%), Segment Other / Net Sales 1 Hundreds of millions of yen / Operating profit -6 Hundreds of millions of yen
Breakdown of Factors Affecting the ChangeFactors Cost reductions and other factors / Amount +¥3.9 billion, Factors Impact of higher prices for raw materials, electronic components, resins and other items / Amount -¥2.6 billion, Factors Impact of tensions in the Middle East on results / Amount Approximately -¥3.0 billion (operating profit), Factors Effects of price revisions and other factors / Amount +¥2.5 billion, Factors Other factors / Amount -¥2.4 billion, -¥2.1 billion, -¥300 million, ±¥0, -¥0, +¥200 million, +¥600 million
Key KPIsIndicator name Existing-home sales in the Americas / Value 99 Year-on-year %, Indicator name Washlet unit sales in the Americas (Q1 FY2026) / Value 88 Year-on-year %, Indicator name Washlet unit sales in the Americas (Q2 FY2026) / Value 120 Year-on-year %, Indicator name Washlet unit sales in Asia (Q2 FY2026) / Value 118 Year-on-year %, Indicator name Europe WASHLET unit sales / Value 123 Index (Q1 2025=100), Indicator name Washlet unit sales in mainland China (Q2 FY2026) / Value 104 Year-on-year %
Unit price and quantity metricsWashlet unit sales are provided for the Americas, Asia, Europe and mainland China, among other regions, but the breakdown by unit price is not disclosed
Assumptions Underlying the Business OutlookForeign exchange rates (period averages): ¥159.6 per US dollar, ¥23.5 per yuan, ¥185.4 per euro, ¥5.1 per Taiwan dollar, ¥0.0061 per dong, ¥4.9 per Thai baht and ¥1.7 per Indian rupee. The assumptions also include semiconductor demand, inventory adjustments and supply chain conditions.
Financial targetsFY2027 targets: ROA 7.2%, ROE 8.5%, TOTO ROIC 8.6%
Capital expenditures¥300 100 million (growth investment in the Ceramics business, announced in April 2026)
Market Size / ShareExisting-home sales in the United States: 99% year on year. Market share figures are not disclosed
New initiativesJapan Housing Equipment: price revisions for orders received from 1 December 2026, with average increases of 8–13% by product, Ceramics business: construction of a new Chigasaki Plant and R&D building, scheduled to begin in December 2026 and be completed in April 2028, Ceramics business: approximately ¥30 billion in growth investments for production expansion and next-generation product development, Mainland China business: business structure reforms including plant closures and workforce optimisation
Items this document does not state (12)
Gross Profit MarginSelling, general and administrative expensesProgress against full-year forecastNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookMedium-term management plan targetsAnnual DividendPayout ratioAcquisition of treasury sharesOrders received and order backlogKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Japan Housing Equipment reported lower revenue and profit due to lower sales of bathroom products, reflecting the impact of tensions in the Middle East, as well as higher externally sourced procurement costs. Overseas Housing Equipment reported higher revenue but lower profit, due to growth investments in the Americas and lower profit in Asia. In mainland China, however, the deficit narrowed on strong retail sales and business structure reforms. New Businesses reported higher revenue and profit. Although semiconductor supply chain disruptions delayed shipment timing, foreign exchange effects and improved productivity in AD component production supported performance. Company-wide operating profit was affected by lower sales and higher prices for raw materials, electronic components and resins, but this was offset by cost reductions and the effects of price revisions.

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First-Quarter Financial Results Presentation for the Fiscal Year Ending March 2027 | TOTO LTD. (5332) timely disclosure | Komori