James Hardie Industries (JHX.AX) Q1 2026 Earnings Report

James Hardie reported QQ1 2026 results with revenue of USD 899.9 million and gross margin of 37.4%, generating EBITDA of USD 225.2 million and net income of USD 62.6 million (EPS USD 0.15). Free cash flow was USD 103.7 million, supported by cash from operations of USD 206.9 million and capital expenditure of USD 103.2 million. The company ended the period with USD 2.11 billion in cash and cash equivalents and total debt of USD 2.61 billion, yielding a net debt position of USD 2.22 billion.

On a year-over-year basis, revenue declined 10.5% and gross profit declined 18.0%, reflecting ongoing cyclicality in construction markets and mix effects. However, operating income rose 65.0% year over year, suggesting strong fixed-cost absorption and favorable product mix. Net income increased 12.6% YoY, while quarter-on-quarter results show a substantial deceleration in profitability, with net income down 55.8% QoQ and EPS down 54.55%. The divergence between the YoY improvement in operating leverage and the QoQ weakness indicates a seasonally challenging quarter or one-off costs that moderated quarterly performance.

Liquidity and balance-sheet positioning remain solid from a cash perspective, with a cash balance exceeding USD 2.1 billion and a robust current ratio of roughly 3.8x. Yet leverage remains high, with total debt of USD 2.61 billion and net debt around USD 2.22 billion, resulting in a net debt to EBITDA multiple near 9.9x for the trailing period. Interest expense of USD 37.8 million and a mid-single-digit operating margin point to meaningful debt service obligations. The company generated positive free cash flow, which provides optionality to delever or fund capex, but the elevated leverage will require monitoring in a more cyclically sensitive environment.