James Hardie Industries’ QQ2 2025 results reflect a mid-cycle operating environment for construction materials, with revenue of USD 960.8 million and a net income of USD 83.4 million. The company posted a gross margin of 38.8% (gross profit USD 372.9 million) and an EBITDA of USD 204.2 million, delivering an EBITDA margin of roughly 21.3% and an operating margin of 15.9%. YoY and QoQ metrics indicate a softer demand backdrop, with revenue down 3.8% year-over-year and 3.0% quarter-over-quarter, and net income down about 45% on both comparisons. Notwithstanding the top-line softness, James Hardie generated solid operating cash flow of USD 179.2 million and free cash flow of USD 83.8 million, underscoring the company’s cash-generation discipline during a cyclical period.
Key Performance Indicators
Revenue
Decreasing
960.80M
QoQ: -3.04% | YoY: -3.80%
Gross Profit
Decreasing
372.90M
38.81% margin
QoQ: -5.96% | YoY: -7.61%
Operating Income
Decreasing
152.30M
QoQ: -35.30% | YoY: -31.83%
Net Income
Decreasing
83.40M
QoQ: -46.30% | YoY: -45.02%
EPS
Decreasing
0.19
QoQ: -47.22% | YoY: -44.12%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue: USD 960.8m; YoY -3.8%, QoQ -3.04%
Gross Profit: USD 372.9m; Gross Margin 38.81%; YoY -7.61%, QoQ -5.96%
Operating Income: USD 152.3m; Margin 15.85%; YoY -31.83%, QoQ -35.30%
EBITDA: USD 204.2m; EBITDA Margin ~21.25%
Net Income: USD 83.4m; Net Margin 8.68%; YoY -45.02%, QoQ -46.30%
EPS (Diluted): USD 0.19; YoY -44.12%, QoQ -47.22%
Cash Flow: Operating cash flow USD 179.2m; Free cash flow USD 83.8m; Capex USD 95.4m; FCF Margin ~8.7%
Balance Sheet: Total assets USD 4.973b; Total liabilities USD 2.997b; Equity USD 1.977b
Liquidity & Leverage: Current ratio 2.02; Quick ratio 1.50; Cash USD 368.1m; Net debt USD 853.4m; Debt/EBITDA ~4.18x; Long-term debt USD 1.193b
Valuation Metrics: Enterprise value multiple shown as 4.18x; no peers identified in dataset for direct benchmarking
Working Capital: DSO ~33 days; DIO ~57 days; DPO ~63 days; CCC ~27 days
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
960.80M
-3.80%
-3.04%
Gross Profit
372.90M
-7.61%
-5.96%
Operating Income
152.30M
-31.83%
-35.30%
Net Income
83.40M
-45.02%
-46.30%
EPS
0.19
-44.12%
-47.22%
Key Financial Ratios
Gross Profit Margin
Fair
38.80%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Good
15.90%
Operating margin is healthy and competitive within industry standards
Net Profit Margin
Fair
8.68%
Net profit margin is moderate, room for improvement in cost management
Return on Assets
Weak
1.68%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
4.22%
Return on equity suggests inefficient capital allocation
Current Ratio
Healthy
2.02
Current ratio shows adequate liquidity to meet short-term obligations