Executive Summary
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
QoQ: -35.30% | YoY:-31.83%
QoQ: -46.30% | YoY:-45.02%
QoQ: -47.22% | YoY:-44.12%
Key Insights
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 liabilitie...
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
operatingProfitMargin
15.9%
Management Commentary
No earnings call transcript data provided for QQ2 2025. Consequently, no management quotes or theme-by-theme highlights could be extracted from a transcript in this dataset.
Forward Guidance
No explicit forward guidance was contained in the provided data for QQ2 2025. Given the cyclicality of construction and housing markets, the outlook hinges on housing activity stabilization or rebound in North America and continued resilience in Europe and APAC markets. Qualitatively, investors should monitor: (1) US housing starts and remodeling activity, (2) input costs and potential pass-through to selling prices, (3) geographic mix shifts (NA vs. APAC/Europe) and associated margin implications, (4) capital allocation signals such as ongoing share repurchases and potential dividend policy changes, and (5) FX dynamics given USD reporting and international exposure. The company’s strong FCF and conservative leverage provide optionality to fund growth initiatives, reduce debt load if required, or opportunistically buy back shares while weathering a softer demand environment.