Lixil boosts earnings by over 60% despite slight revenue dip

Lixil Group Corporation announced its consolidated financial results for the first half of the fiscal year ending March 2026 (April 1 to September 30, 2025). Revenue for the period decreased by 3.8 billion yen year-on-year to 735.9 billion yen, a 0.5% decline. Despite this, core earnings rose by 6.4 billion yen to 16.9 billion yen, a 60.4% increase. Profit attributable to owners of the parent for H1 FY2026 was 3.4 billion yen, a 7.3 billion yen improvement year-on-year. Basic earnings per share were 11.67 yen, up 25.36 yen from the prior year.

The company's total assets increased marginally to 1,867.4 billion yen as of September 30, 2025, from 1,830.8 billion yen as of March 31, 2025, primarily due to foreign exchange impacts on European assets. Equity attributable to owners of the parent increased to 636.5 billion yen, with the equity ratio improving to 34.1%. Operating cash flow decreased due to an increase in inventories, but Free Cash Flow (FCF) remained positive at 13.3 billion yen. Lixil confirmed an interim dividend of 45 yen per share and maintained its full-year dividend forecast of 90 yen per share.

Strategic changes included a new "Living Business" segment from Q1 FY2026, integrating kitchen, vanity, and wooden interior materials businesses. The Water Technology Business (LWT) saw increased core earnings from strong renovation sales in Japan and profitability in Europe and the Middle East. The Housing Technology Business (LHT) maintained flat core earnings despite a slight revenue decline, supported by price optimization.