TOTO: Cuts FY2027 sales forecast, holds operating profit at ¥60bn

TOTO revised its consolidated full-year forecast for the year ending March 2027, lowering its sales outlook while keeping forecasts for operating profit and net profit unchanged.

The sales forecast was reduced by ¥10 billion, or 1.3%, from the previous outlook. The ordinary profit forecast was cut by ¥500 million, or 0.9%. Compared with the previous year, sales, operating profit and net profit are expected to rise, while ordinary profit is forecast to decline.

TOTO cited its second-quarter, or interim, results and the outlook for each business segment as reasons for the revision. The company also factored in weaker market conditions in its Americas and mainland China businesses.

• Factors behind the revised outlook: Second-quarter (interim) results
• Market conditions: Weakness in the Americas and mainland China businesses
• Reference material: TOTO provided details in its “FY2027 Second-Quarter Financial Results Presentation,” released the same day

The disclosure specified the size of the sales reduction but did not detail the impact by region or segment. The revised outlook reflects both interim results and the business environment expected in the second half and beyond.

TOTO kept its operating profit forecast unchanged despite lowering its sales outlook, while making a modest cut to its ordinary profit forecast. The direction of the revisions differed by profit measure, making it important to track results beyond sales and operating profit.

Compared with the previous year, operating profit is expected to increase, while ordinary profit is forecast to fall. TOTO maintained its forecast for net profit to exceed the previous year's result, so the sales downgrade should not be read as a reduction in its outlook for all profit measures.

TOTO lowered its full-year sales and ordinary profit forecasts while maintaining its outlooks for operating profit and net profit. Investors will be watching how weaker market conditions in the Americas and mainland China affect sales and earnings, and for segment-level details in the company's next results materials.

TOTO said its forecast is based on information available at this time, and actual results may differ because of various factors. Investors will need to monitor results and future outlook updates as the business environment underlying the forecast changes.