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LIXIL Beats Core Earnings Forecast as Renovation Demand Offsets Housing Slump

Story Highlights
  • LIXIL’s fiscal 2026 core earnings beat forecasts as all segments grew year-on-year, driven by strong renovation demand that offset a sharp decline in new housing and despite aluminum price increases pressuring margins.
  • International profitability improved on a shift to value-added products and structural reforms, with the Americas turning monthly profitable in March, though overall results were dampened by higher restructuring charges and exchange-related finance costs.
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LIXIL Beats Core Earnings Forecast as Renovation Demand Offsets Housing Slump

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An announcement from LIXIL Group ( (JP:5938) ) is now available.

LIXIL Corporation reported financial results for the fiscal year ending March 31, 2026, under IFRS, highlighting core earnings of JPY38.5 billion and EBITDA of JPY121.6 billion, with core earnings surpassing its forecast. All business segments posted year-on-year growth in core earnings, largely supported by robust renovation-related sales that offset a double-digit decline in new housing demand, while the LHT business benefited from higher sales of subsidy-eligible products despite margin pressure from a late-year surge in aluminum prices.

In its international LWT operations, revenue stayed flat year-on-year but profitability improved significantly thanks to a shift toward value-added products in Europe and IMEA, and structural reforms that helped the Americas return to monthly core earnings profitability in March despite sluggish housing markets in the Americas and China. The company’s bottom line was tempered by higher other income and expenses due to additional structural reform costs and increased finance costs stemming from exchange losses, underscoring both the gains from portfolio and efficiency measures and the ongoing headwinds from input cost volatility and currency movements.

The most recent analyst rating on (JP:5938) stock is a Hold with a Yen1600.00 price target. To see the full list of analyst forecasts on LIXIL Group stock, see the JP:5938 Stock Forecast page.

More about LIXIL Group

LIXIL Corporation is a Japan-based global manufacturer in the building materials and housing equipment industry, listed on the Tokyo Stock Exchange under code 5938. The company focuses on products for housing and renovation markets, with operations spanning Japan and international regions including Europe, the Americas, China, and IMEA, targeting both new construction and renovation demand.

Average Trading Volume: 2,451,748

Technical Sentiment Signal: Sell

Current Market Cap: Yen461B

For an in-depth examination of 5938 stock, go to TipRanks’ Overview page.

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