Executive Summary
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
QoQ: -2.82% | YoY:-10.29%
QoQ: 35.33% | YoY:-12.86%
Key Insights
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 0.6...
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
operatingProfitMargin
21.6%
operatingCashFlowPerShare
$0.68
freeCashFlowPerShare
$0.43
Management Commentary
No earnings call transcript was provided in the data. Consequently, no management quotes or transcript-driven themes could be extracted. Expected themes from a typical James Hardie call would include demand trends in North America fiber cement, pricing discipline, cost management, and capital allocation intentions. Investors should monitor: (1) housing market momentum and construction activity in core geographies, (2) input costs and supply chain dynamics, (3) currency effects on non-US operations, and (4) any disclosed guidance on earnings power or capital deployment.
Forward Guidance
No formal forward guidance was included in the provided dataset. Given the current quarter’s solid profitability and free cash flow generation, the Company appears capable of sustaining discretionary capital allocation and balance sheet optimization if market conditions remain favorable. Key factors to watch for guidance relevance include: trajectory of US housing starts and commercial construction, $/local currency input costs, and any explicit expectations for margin expansion or category mix shifts in North America, Asia Pacific, and Europe.