Key Financials — Revenue, Core Earnings and EBITDA
Revenue of JPY 1,138.5 billion for Q3; core earnings JPY 36.5 billion; EBITDA JPY 98.4 billion.
Profitability Improvement — Gross Profit and Core Earnings Ratio
Gross profit improved by 1.3 percentage points year‑on‑year and core earnings ratio improved by 0.5 percentage points, supporting higher reported profitability despite revenue softness.
Segment Outperformance — Japan Renovation and EMEA/IMEA Strength
Domestic LWTJ and Living segments performed well with robust renovation product demand (subsidy‑eligible window renovation sales highlighted); Europe, Middle East and India (IMEA) posted strong performance that offset weakness in Americas and China.
Free Cash Flow and Balance Sheet Resilience
Free cash flow remained in positive territory despite a year‑on‑year decline in operating cash flow driven by increases in receivables and inventories; equity ratio reported at 34.4%.
Competitive Cash Earning Power (EBITDA) vs Peers
Management highlighted that LIXIL's EBITDA/earning power is strong relative to many peers (noting peer differences in product mix and FX effects), reinforcing underlying cash generation capacity.
High Aluminum Scrap Usage Mitigates Raw Material Shock
Company uses ~80% aluminum scrap (experimented successfully up to 90%), which delays and reduces immediate margin impact from rapid aluminum price spikes.
One‑time Tax Benefit Supporting Current Year Net Profit
A JPY 12 billion positive impact from a tax‑system change (Germany) reduced tax expense this year, supporting reported net profit (management clarifies this is one‑time).