Worth reading
69In focus
Scored from 5 of 6 sectionsDirection
Mixed performance
Direction inferred from the company’s description.Scale
-114
¥100 million (year-on-year change in business profit)Wording
Conditional
How definitive the wording is.Contents of this document
Financial Results PresentationSecond quarter (interim period) 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 Sales¥7,625 hundred million+3.6%
Operating profit¥55 100 million -67.3%business profit, IFRS
Net income¥-46 100 million interim net profit attributable to owners of the parent
Gross Profit MarginDown 1.4 percentage points year on year (rate level: Not disclosed)
Operating profit margin0.7%, down 1.6 percentage points year on year
Results for the three months of the current quarterRevenue was ¥383.2 billion, up 3.2% year on year; business profit was ¥3.8 billion, down ¥4.0 billion year on year, or 51.3%; and the business profit margin was 1.0%. Interim net profit deteriorated by ¥5.3 billion year on year.
Full-year earnings forecastFull-year forecasts for revenue, business profit and other items are provided on page 22 of the materials, while the items for which figures can be confirmed in the main text include LWT overseas revenue of ¥550.0 billion and the business profit margin. The full-year earnings and dividend forecasts remain unchanged.
Progress against full-year forecast 通期の予想に対して、いまどこまで進んだかの割合です。The breakdown by factor shows mix and selling prices at 22%, cost changes at 40%, the overseas business at 14%, and consolidation adjustments and other factors at 26%. Progress against the full-year forecasts for consolidated revenue and business profit themselves is Not disclosed.
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
The ¥11.4 billion year-on-year decline in first-half business profit consisted of +¥5.3 billion from changes in domestic revenue, +¥41.7 billion from mix and selling prices, -¥44.2 billion from cost changes, -¥1.2 billion from SG&A expenses, +¥9.4 billion from the overseas business, and -¥4.5 billion from consolidation adjustments and other factors. The breakdown of cost changes was -¥17.9 billion from procurement market conditions, +¥0.1 billion from cost reductions and other measures, and -¥2.9 billion from personnel, activity and logistics expenses and other items.
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Foreign exchange rates: ¥155.0 per US dollar and ¥186.0 per euro. Aluminum prices: ¥470,000 per tonne; copper alloy prices: ¥1.336 million per tonne.New initiatives
LHT Global, LHT's global coordinating organization, was newly established in October 2026 to accelerate the overseas expansion of PremiAL, a circular low-carbon aluminum, and revia, a circular material. Measures for the second half include expanding LHT renovation revenue through subsidy-eligible products, price revisions, structural reforms and improvements to the product mix.Key KPIsA metric the company considers important as a management benchmark.
Key metrics include revenue, EBITDA, renovation product revenue, the renovation revenue mix, the overseas revenue ratio, the overseas business profit ratio, regional revenue and business profit, and product-level revenue. EBITDA was ¥47.3 billion, renovation product revenue was ¥194.0 billion, the renovation revenue mix was 48%, and LWT's overseas revenue ratio was 62.8%.Unit price and quantity metricsThese figures show sales broken down by price and volume.
The materials explain the impact of sales volumes and price revisions and provide changes in sales volumes by region and product. However, quantitative breakdowns of unit prices and volumes, such as customer numbers and average spend per customer, are Not disclosed.Segment results
Revenue and business profit are provided for LWT, LHT and Living. LWT achieved higher profit in both Japan and overseas, LHT saw a significant decline in profit in Japan and a slight increase overseas, and Living reported higher revenue but lower profit. In the first half, LWT's overseas revenue was ¥265.4 billion, business profit was ¥12.0 billion, and the business profit margin was 4.5%.Medium-term management plan targets
The LIXIL Playbook identifies “accelerating growth in the overseas water business” as a priority. Specific medium-term targets and comparisons with actual results are Not disclosed.Financial targets
The equity ratio is stated as 33.9%. Target figures for ROE, ROIC, the D/E ratio and other metrics are Not disclosed.Market Size / Share
The materials provide data on new housing starts in Japan. From January to August 2026, there were 494,226 starts, up 2.3% year on year. Specific market share is Not disclosed.Annual Dividend
The full-year dividend forecast remains unchanged. An interim dividend of ¥45 was approved. The year-end dividend and total annual dividend are Not disclosed.| Item | Details |
|---|---|
| Document type | Financial Results Presentation |
| Fiscal Period Covered | Second quarter (interim period) of the fiscal year ending March 2027 |
| Net Sales | ¥7,625 hundred million (YoY +3.6%) |
| Operating profit | ¥55 100 million (business profit, IFRS) (YoY -67.3%) |
| Net income | ¥-46 100 million (interim net profit attributable to owners of the parent) |
| Gross Profit Margin | Down 1.4 percentage points year on year (rate level: Not disclosed) |
| Operating profit margin | 0.7%, down 1.6 percentage points year on year |
| Results for the three months of the current quarter | Revenue was ¥383.2 billion, up 3.2% year on year; business profit was ¥3.8 billion, down ¥4.0 billion year on year, or 51.3%; and the business profit margin was 1.0%. Interim net profit deteriorated by ¥5.3 billion year on year. |
| Full-year earnings forecast | Full-year forecasts for revenue, business profit and other items are provided on page 22 of the materials, while the items for which figures can be confirmed in the main text include LWT overseas revenue of ¥550.0 billion and the business profit margin. The full-year earnings and dividend forecasts remain unchanged. |
| Progress against full-year forecast | The breakdown by factor shows mix and selling prices at 22%, cost changes at 40%, the overseas business at 14%, and consolidation adjustments and other factors at 26%. Progress against the full-year forecasts for consolidated revenue and business profit themselves is Not disclosed. |
| Segment results | Revenue and business profit are provided for LWT, LHT and Living. LWT achieved higher profit in both Japan and overseas, LHT saw a significant decline in profit in Japan and a slight increase overseas, and Living reported higher revenue but lower profit. In the first half, LWT's overseas revenue was ¥265.4 billion, business profit was ¥12.0 billion, and the business profit margin was 4.5%. |
| Breakdown of Factors Affecting the Change | The ¥11.4 billion year-on-year decline in first-half business profit consisted of +¥5.3 billion from changes in domestic revenue, +¥41.7 billion from mix and selling prices, -¥44.2 billion from cost changes, -¥1.2 billion from SG&A expenses, +¥9.4 billion from the overseas business, and -¥4.5 billion from consolidation adjustments and other factors. The breakdown of cost changes was -¥17.9 billion from procurement market conditions, +¥0.1 billion from cost reductions and other measures, and -¥2.9 billion from personnel, activity and logistics expenses and other items. |
| Key KPIs | Key metrics include revenue, EBITDA, renovation product revenue, the renovation revenue mix, the overseas revenue ratio, the overseas business profit ratio, regional revenue and business profit, and product-level revenue. EBITDA was ¥47.3 billion, renovation product revenue was ¥194.0 billion, the renovation revenue mix was 48%, and LWT's overseas revenue ratio was 62.8%. |
| Unit price and quantity metrics | The materials explain the impact of sales volumes and price revisions and provide changes in sales volumes by region and product. However, quantitative breakdowns of unit prices and volumes, such as customer numbers and average spend per customer, are Not disclosed. |
| Assumptions Underlying the Business Outlook | Foreign exchange rates: ¥155.0 per US dollar and ¥186.0 per euro. Aluminum prices: ¥470,000 per tonne; copper alloy prices: ¥1.336 million per tonne. |
| Medium-term management plan targets | The LIXIL Playbook identifies “accelerating growth in the overseas water business” as a priority. Specific medium-term targets and comparisons with actual results are Not disclosed. |
| Financial targets | The equity ratio is stated as 33.9%. Target figures for ROE, ROIC, the D/E ratio and other metrics are Not disclosed. |
| Annual Dividend | The full-year dividend forecast remains unchanged. An interim dividend of ¥45 was approved. The year-end dividend and total annual dividend are Not disclosed. |
| Market Size / Share | The materials provide data on new housing starts in Japan. From January to August 2026, there were 494,226 starts, up 2.3% year on year. Specific market share is Not disclosed. |
| New initiatives | LHT Global, LHT's global coordinating organization, was newly established in October 2026 to accelerate the overseas expansion of PremiAL, a circular low-carbon aluminum, and revia, a circular material. Measures for the second half include expanding LHT renovation revenue through subsidy-eligible products, price revisions, structural reforms and improvements to the product mix. |
Items this document does not state (11)
Ordinary incomeSelling, general and administrative expensesSelf-assessment against the planNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookPayout ratioAcquisition of treasury sharesCapital expendituresOrders 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.In Japan, increases in ingot and materials costs accelerated, while the impact of price revisions remained limited. At LHT in particular, the cost impact of higher aluminum prices and a lower sales mix of renovation products reduced profit. Overseas, steady performance in Europe and the IMEA region, price revisions and the effects of structural reforms in the United States contributed to higher profit.
How to read this page
This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.