James Hardie QQ3 2025 results show solid profitability and strong cash generation despite a modest revenue decline. Revenue totaled USD 953.3 million, down 3.35% year over year and 0.78% quarter over quarter, while gross profit reached USD 362.4 million for a gross margin of 38.0%. EBITDA stood at USD 261.3 million with operating income of USD 206.1 million (margins of 27.4% and 21.6%, respectively). Net income was USD 141.7 million and EPS USD 0.33, supported by robust operating cash flow of USD 293.1 million and free cash flow of USD 185.3 million. Free cash flow generation was accompanied by prudent capital expenditure of USD 107.8 million and depreciation of USD 55.1 million, underscoring efficient capital allocation. The balance sheet remains solid, with total assets of USD 4.91 billion, a cash balance at year-end of about USD 558 million, and net debt of USD 649 million equating to roughly 2.5x net debt to EBITDA. These dynamics position James Hardie to weather near-term cyclical headwinds in construction while preserving optionality for growth investments or capital returns, contingent on market conditions and competitive dynamics.
Key Performance Indicators
Revenue
Decreasing
953.30M
QoQ: -0.78% | YoY: -3.35%
Gross Profit
Decreasing
362.40M
38.02% margin
QoQ: -2.82% | YoY: -10.29%
Operating Income
Decreasing
206.10M
QoQ: 35.33% | YoY: -12.86%
Net Income
Decreasing
141.70M
QoQ: 69.90% | YoY: -2.34%
EPS
Stable
0.33
QoQ: 73.68% | YoY: 0.00%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue: USD 953.3m; YoY -3.35%; QoQ -0.78%
Gross Profit: USD 362.4m; YoY -10.29%; QoQ -2.82%; Gross Margin ~38.0%
Operating Income: USD 206.1m; YoY -12.86%; QoQ +35.33%; Operating Margin ~21.62%
Net Income: USD 141.7m; YoY -2.34%; QoQ +69.90%; Net Margin ~14.86%
EPS: USD 0.33; YoY 0.00%; QoQ +73.68%
Cash Flow: Operating Cash Flow USD 293.1m; Free Cash Flow USD 185.3m; Capex USD 107.8m; Cash End USD 557.5m
Liquidity & Leverage: Total Assets USD 4.909b; Total Debt USD 1.189b; Net Debt USD 0.649b; Current Ratio 2.18; Debt to Equity ~0.57; Debt to Capitalization ~0.36
Valuation: P/E ~23.5x; EV/EBITDA ~53.4x; Price to Book ~6.34x; Price to Sales ~13.96x
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
953.30M
-3.35%
-0.78%
Gross Profit
362.40M
-10.29%
-2.82%
Operating Income
206.10M
-12.86%
35.33%
Net Income
141.70M
-2.34%
69.90%
EPS
0.33
0.00%
73.68%
Key Financial Ratios
Gross Profit Margin
Fair
38.00%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Good
21.60%
Operating margin is healthy and competitive within industry standards
Net Profit Margin
Good
14.90%
Net profit margin is healthy and competitive within industry standards
Return on Assets
Weak
2.89%
Return on assets suggests inefficient capital allocation
Return on Equity
Fair
6.75%
Return on equity is acceptable but below top-tier companies
Current Ratio
Healthy
2.18
Current ratio shows adequate liquidity to meet short-term obligations
Debt to Equity
Moderate
0.57
Debt-to-equity indicates balanced capital structure with manageable debt
P/E Ratio
Fair Value
23.48x
P/E ratio in line with market averages
Price to Book
High Premium
6.34x
Very high premium suggests asset-light business model or lofty expectations
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