Worth reading
74In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Improvement
Direction inferred from the company’s description.Scale
72
¥100 million (year-on-year change in business profit)Wording
Conditional
How definitive the wording is.Contents of this document
Financial results presentationFiscal year ending March 202616 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales15,107 Hundreds of millions of yen+0.4%
Operating profit284 Hundreds of millions of yen
Ordinary income¥157 100 million IFRS profit before tax
Net income¥81 100 million profit for the year attributable to owners of the parent
Selling, general and administrative expenses99 Year-on-year increase in ¥100 million SG&A ratio deteriorated by 0.5 percentage point year on year
Gross Profit MarginImproved by 1.0 percentage point year on year (the margin itself is Not disclosed)
Results for the three months of the current quarterQuarterly revenue was ¥372.2 billion, business profit was ¥2.0 billion, and the business profit margin was 0.5%. Revenue increased by ¥8.0 billion and business profit by ¥1.7 billion year on year.
Full-year earnings forecastRevenue ¥1,600.0 billion, business profit ¥45.0 billion, operating profit ¥37.5 billion, profit before tax ¥25.0 billion, income tax expense -¥13.0 billion, profit for the year attributable to owners of the parent ¥12.0 billion, EBITDA ¥126.4 billion, adjusted EBITDA ¥103.3 billion, annual dividend ¥90, EPS ¥41.75, ROE 1.8%, ROA 0.6%, ROIC 2.0%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Business profit came in above the earnings forecast. Final profit was broadly in line with the earnings forecast.Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
¥7.2 billion year-on-year increase in business profit for the fiscal year ending March 2026: domestic sales impact +¥3.5 billion, mix and selling prices +¥20.4 billion, costs -¥9.4 billion, SG&A -¥7.7 billion, overseas business +¥3.7 billion, consolidated adjustments and other -¥6.8 billion. Revenue increased by ¥6.0 billion year on year.
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Assumed exchange rates for the fiscal year ending March 2027: US$1 = ¥155.0 and €1 = ¥186.0. Raw material prices: aluminum ¥470,000 per tonne and copper alloy ¥1,336,000 per tonne. Total housing starts: 719 thousand units, down 1% year on year; owner-occupied housing: 196 thousand units, down 3%; built-for-sale detached housing: 113 thousand units, down 3%; renovation market size: ¥7.5 trillion, up 1%. Outlook for the average interest rate on short-term borrowings, current portion of long-term borrowings, and long-term borrowings is Not disclosed.New initiatives
Launch of the American Standard premium toilet “Champion” in the United States; investment in GROHE showrooms; use of ASB training laboratories for contractors; rollout of shower toilets in the United States; rollout of circular low-carbon aluminum “PremiAL” across all products; collaboration with Daiwa Lease to collect, recycle, and resupply sashes used for leasing; launch of the circular material “Revia Panel”; rollout of the new “Noct,” “Shiera,” “GS Series,” and “Ecocarat Plus” products; and changes to the executive structure.Key KPIsA metric the company considers important as a management benchmark.
Renovation product sales ¥397.6 billion, up 5.3% year on year; renovation sales mix 47%, up 1.9 percentage points; LWT overseas business profit mix 48.0%, up 2.9 percentage points; LWT overseas sales mix 60.7%, down 0.5 percentage point; cumulative number of people benefiting from improved sanitation and hygiene 103 million; SATO shipments of more than 10 million units; presence in 59 countries and regionsUnit price and quantity metricsThese figures show sales broken down by price and volume.
Japanese housing starts: 728 thousand units; renovation market size: ¥7.4 trillion. Product sales growth included sanitary ware +2.7%, bathrooms +2.9%, residential sashes +0.7%, exteriors +2.5%, and kitchens +1.9%. Direct decomposition metrics such as customer numbers and average spend per customer are Not disclosed.Segment results
Total LWT overseas: revenue ¥492.5 billion, 0% year on year, and business profit ¥21.8 billion, up 31%. Breakdown: Americas revenue ¥150.4 billion and business profit -¥7.5 billion; Europe ¥176.6 billion and ¥21.5 billion; India, the Middle East and Africa ¥72.1 billion and ¥5.0 billion; Asia Pacific ¥44.4 billion and ¥2.0 billion; China ¥37.5 billion and -¥0.3 billion; consolidated adjustments and other ¥11.4 billion and ¥1.1 billion. The chart figures for revenue and business profit for LHT and Living are Not disclosed in the extracted text.Medium-term management plan targets
Medium-term target: business profit margin of 7.5%. Long-term targets: business profit margin of 10% and ROIC of 10%. Forecast for the fiscal year ending March 2027: business profit margin of 2.8% and ROIC of 2.0%.Financial targets
Medium-term target: business profit margin of 7.5%; long-term targets: business profit margin of 10% and ROIC of 10%. For the fiscal year ending March 2026, ROE was 1.3%, ROIC was 1.5%, the equity attributable to owners of the parent ratio was 35.3%, and net interest-bearing debt/EBITDA was 4.4x.Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
The amount is Not disclosed. The impact of the situation in the Middle East on sales and costs has not been included in the outlook for the fiscal year ending March 2027 because it is difficult to incorporate it reasonably.Market Size / Share
Domestic renovation market size: ¥7.4 trillion for the fiscal year ending March 2026 and ¥7.5 trillion in the outlook for the fiscal year ending March 2027. Sales mix by brand was disclosed, but market share is Not disclosed.Number of employees
The U.S. business achieved a workforce reduction of approximately 10% over the past year. Total employees and the hiring plan are Not disclosed.Capital expenditures
¥609 100 million actual for the fiscal year ending March 2026; forecast of ¥70.5 billion for the fiscal year ending March 2027
Annual Dividend
Annual dividend of ¥90 per share. The interim and year-end breakdown is Not disclosed.Payout ratio
Dividend amount as a percentage of adjusted EBITDA: 25%. The regular payout ratio, total payout ratio, and DOE are Not disclosed.Acquisition of treasury shares
The policy is to consider share buybacks flexibly depending on the availability of surplus funds. The amount, number of shares, and period of the buyback are Not disclosed.| Item | Details |
|---|---|
| Document type | Financial results presentation |
| Fiscal Period Covered | Fiscal year ending March 2026 |
| Net Sales | 15,107 Hundreds of millions of yen (YoY +0.4%) |
| Operating profit | 284 Hundreds of millions of yen |
| Ordinary income | ¥157 100 million (IFRS profit before tax) |
| Net income | ¥81 100 million (profit for the year attributable to owners of the parent) |
| Gross Profit Margin | Improved by 1.0 percentage point year on year (the margin itself is Not disclosed) |
| Selling, general and administrative expenses | 99 Year-on-year increase in ¥100 million (SG&A ratio deteriorated by 0.5 percentage point year on year) |
| Results for the three months of the current quarter | Quarterly revenue was ¥372.2 billion, business profit was ¥2.0 billion, and the business profit margin was 0.5%. Revenue increased by ¥8.0 billion and business profit by ¥1.7 billion year on year. |
| Full-year earnings forecast | Revenue ¥1,600.0 billion, business profit ¥45.0 billion, operating profit ¥37.5 billion, profit before tax ¥25.0 billion, income tax expense -¥13.0 billion, profit for the year attributable to owners of the parent ¥12.0 billion, EBITDA ¥126.4 billion, adjusted EBITDA ¥103.3 billion, annual dividend ¥90, EPS ¥41.75, ROE 1.8%, ROA 0.6%, ROIC 2.0% |
| Self-assessment against the plan | Business profit came in above the earnings forecast. Final profit was broadly in line with the earnings forecast. |
| Segment results | Total LWT overseas: revenue ¥492.5 billion, 0% year on year, and business profit ¥21.8 billion, up 31%. Breakdown: Americas revenue ¥150.4 billion and business profit -¥7.5 billion; Europe ¥176.6 billion and ¥21.5 billion; India, the Middle East and Africa ¥72.1 billion and ¥5.0 billion; Asia Pacific ¥44.4 billion and ¥2.0 billion; China ¥37.5 billion and -¥0.3 billion; consolidated adjustments and other ¥11.4 billion and ¥1.1 billion. The chart figures for revenue and business profit for LHT and Living are Not disclosed in the extracted text. |
| Breakdown of Factors Affecting the Change | ¥7.2 billion year-on-year increase in business profit for the fiscal year ending March 2026: domestic sales impact +¥3.5 billion, mix and selling prices +¥20.4 billion, costs -¥9.4 billion, SG&A -¥7.7 billion, overseas business +¥3.7 billion, consolidated adjustments and other -¥6.8 billion. Revenue increased by ¥6.0 billion year on year. |
| Key KPIs | Renovation product sales ¥397.6 billion, up 5.3% year on year; renovation sales mix 47%, up 1.9 percentage points; LWT overseas business profit mix 48.0%, up 2.9 percentage points; LWT overseas sales mix 60.7%, down 0.5 percentage point; cumulative number of people benefiting from improved sanitation and hygiene 103 million; SATO shipments of more than 10 million units; presence in 59 countries and regions |
| Unit price and quantity metrics | Japanese housing starts: 728 thousand units; renovation market size: ¥7.4 trillion. Product sales growth included sanitary ware +2.7%, bathrooms +2.9%, residential sashes +0.7%, exteriors +2.5%, and kitchens +1.9%. Direct decomposition metrics such as customer numbers and average spend per customer are Not disclosed. |
| Number of employees | The U.S. business achieved a workforce reduction of approximately 10% over the past year. Total employees and the hiring plan are Not disclosed. |
| Assumptions Underlying the Business Outlook | Assumed exchange rates for the fiscal year ending March 2027: US$1 = ¥155.0 and €1 = ¥186.0. Raw material prices: aluminum ¥470,000 per tonne and copper alloy ¥1,336,000 per tonne. Total housing starts: 719 thousand units, down 1% year on year; owner-occupied housing: 196 thousand units, down 3%; built-for-sale detached housing: 113 thousand units, down 3%; renovation market size: ¥7.5 trillion, up 1%. Outlook for the average interest rate on short-term borrowings, current portion of long-term borrowings, and long-term borrowings is Not disclosed. |
| Risk amount incorporated into the outlook | The amount is Not disclosed. The impact of the situation in the Middle East on sales and costs has not been included in the outlook for the fiscal year ending March 2027 because it is difficult to incorporate it reasonably. |
| Medium-term management plan targets | Medium-term target: business profit margin of 7.5%. Long-term targets: business profit margin of 10% and ROIC of 10%. Forecast for the fiscal year ending March 2027: business profit margin of 2.8% and ROIC of 2.0%. |
| Financial targets | Medium-term target: business profit margin of 7.5%; long-term targets: business profit margin of 10% and ROIC of 10%. For the fiscal year ending March 2026, ROE was 1.3%, ROIC was 1.5%, the equity attributable to owners of the parent ratio was 35.3%, and net interest-bearing debt/EBITDA was 4.4x. |
| Annual Dividend | Annual dividend of ¥90 per share. The interim and year-end breakdown is Not disclosed. |
| Payout ratio | Dividend amount as a percentage of adjusted EBITDA: 25%. The regular payout ratio, total payout ratio, and DOE are Not disclosed. |
| Acquisition of treasury shares | The policy is to consider share buybacks flexibly depending on the availability of surplus funds. The amount, number of shares, and period of the buyback are Not disclosed. |
| Capital expenditures | ¥609 100 million (actual for the fiscal year ending March 2026; forecast of ¥70.5 billion for the fiscal year ending March 2027) |
| Market Size / Share | Domestic renovation market size: ¥7.4 trillion for the fiscal year ending March 2026 and ¥7.5 trillion in the outlook for the fiscal year ending March 2027. Sales mix by brand was disclosed, but market share is Not disclosed. |
| New initiatives | Launch of the American Standard premium toilet “Champion” in the United States; investment in GROHE showrooms; use of ASB training laboratories for contractors; rollout of shower toilets in the United States; rollout of circular low-carbon aluminum “PremiAL” across all products; collaboration with Daiwa Lease to collect, recycle, and resupply sashes used for leasing; launch of the circular material “Revia Panel”; rollout of the new “Noct,” “Shiera,” “GS Series,” and “Ecocarat Plus” products; and changes to the executive structure. |
Items this document does not state (5)
Operating profit marginProgress against full-year forecastNumber of stores and locationsOrders 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.Although new housing demand in Japan declined by more than 10% year on year, renovation sales grew. Overseas, the shift toward higher-value-added products in Europe and IMEA and the effects of structural reforms contributed to higher earnings. Other expenses and finance costs increased, but final profit improved as business profit rose and income tax expense declined.
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