• North America Sales: $2.9 billion in FY25.

• North America EBIT Margin: 29.4% in FY25.

• North America EBITDA: $1 billion, with a 35% EBITDA margin.

• Adjusted Net Income: $644 million in FY25.

• Q4 Total Net Sales: $972 million, a 3% decrease year-over-year.

• Q4 Adjusted EBITDA: $269 million, with a 27.6% margin.

• Q4 Adjusted Net Income: $156 million.

• Q4 Adjusted Diluted EPS: $0.36 per share.

• Asia Pacific Q4 Net Sales: Declined 17% in USD, 13% in AUD.

• Europe Q4 Net Sales: $135 million, a 5% increase in USD.

• FY26 Free Cash Flow Guidance: At least $500 million, up over 30% from FY25.

• FY26 Capital Expenditures: Expected to decline by nearly $100 million to approximately $325 million.

• Warning! GuruFocus has detected 3 Warning Signs with CVOSF.

Release Date: May 20, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• James Hardie Industries PLC (NYSE:JHX) delivered solid business and financial results in the fourth quarter, reflecting a commitment to invest and grow profitably even in challenging market conditions.

• The company achieved a North America EBIT margin of 29.4%, exceeding initial profitability commitments.

• James Hardie Industries PLC (NYSE:JHX) announced a strategic combination with the AZEK Company, creating a leading growth platform in building products.

• The company has secured multiyear national hard siding and trim exclusivity agreements with several major homebuilders, enhancing its market position.

• James Hardie Industries PLC (NYSE:JHX) expects to generate robust annual free cash flow of greater than $1 billion post-synergies from the AZEK merger.

Negative Points

• The North American market is expected to face a mid-single-digit decline in volumes due to macroeconomic uncertainties and a challenging demand environment.

• The company's interior products and multifamily segments experienced significant volume declines, impacting overall performance.

• James Hardie Industries PLC (NYSE:JHX) faced raw material headwinds, particularly in cement and pulp, which weighed on margins.

• The Asia Pacific segment saw a 31% decrease in volume, primarily due to the closure of operations in the Philippines.

• The European market remains challenged, with a gradual path to recovery expected, particularly in Germany, the largest European market for the company.

Q & A Highlights

Q: Can you provide your internal view of North American R&R and new single-family end markets in FY26 and your growth expectations within that guidance? A: Aaron Erter, CEO: We expect to outperform the market despite external forecasts indicating a mid to high single-digit decline in R&R. Our guidance accounts for potential market depression, and we are confident in our ability to outperform.