LIXIL Corporation

Q3 FY ending Mar 31, 2026 headline performance (good vs. mixed): - Revenue: JPY 1,138.5bn (slight YoY decrease), but profitability improved. - Core earnings: JPY 36.5bn (up YoY), and EBITDA: JPY 98.4bn. - Positive driver: Gross profit up +1.3 pts YoY → core earnings ratio improved +0.5 pts. - Segment highlights: Japan window/renovation and subsidy-related products helped; Europe/MEA strong and Americas/China softness was offset (but FX losses impacted results).

Where growth came from (opportunity): - Japan: LWTJ & Living “continued to do well” with revenue and earnings growth; renovation products robust despite weak new housing demand; subsidy-eligible products supported sales growth. - Europe, Middle East & India: strong performance supported the group while Americas & China were sluggish. - Europe product mix: In Europe, growth attributed to higher-end applied products (e.g., G4/G5) replacing lower-priced nickel-chromium products—units not necessarily rising, but ASP higher.

Cash flow & financial position (surprising vs. watch-outs): - Equity ratio: 34.4%. - Operating cash flow decreased YoY due to accounts receivable and inventories increasing. - Free cash flow stayed positive, suggesting cash discipline/underlying cash generation remains intact despite working-capital pressure.