Executive Summary
James Hardie Industries reports QQ1 2026 revenue of USD 899.9 million, down 10.5% year over year and 5.6% quarter over quarter, with a solid but decelerating margin profile. Gross margin stood at 37.4% in the quarter, while EBITDA reached USD 225.2 million (EBITDA margin 25.0%), and operating income was USD 138.6 million (operating margin 15.4%). Net income totaled USD 62.6 million, or USD 0.15 per share, up 12.6% year over year but down 55.8% quarter over quarter. The company generated USD 206.9 million in operating cash flow and USD 103.7 million in free cash flow, supporting a strong liquidity position, including cash and cash equivalents of USD 391.6 million and total cash at period end of USD 2.112 billion. Net debt stood at USD 2.218 billion, reflecting a high leverage profile despite substantial cash generation. During the quarter, management executed a notable financing activity, with debt repayment of USD 1.410 billion and net cash provided by financing activities of USD 1.403 billion, suggesting active deleveraging and/or refinancing activity. The balance sheet remains robust with total assets of USD 6.787 billion and current assets of USD 3.172 billion, yielding a healthy current ratio around 3.8x. The company continues to invest in capacity and technology (capex USD 103.2 million) while navigating a housing-market led, cyclically sensitive demand environment. The QQ1 results reflect a company with durable profitability and meaningful cash generation, but with meaningful leverage that warrants monitoring as the housing cycle evolves.
Key Performance Indicators
QoQ: -5.60% | YoY:-10.45%
QoQ: -7.04% | YoY:-17.97%
QoQ: -32.75% | YoY:65.00%
QoQ: -55.82% | YoY:12.59%
QoQ: -54.55% | YoY:15.38%
Key Insights
Revenue: USD 899.9m; YoY -10.5%; QoQ -5.6%. Gross Profit: USD 336.9m; YoY -17.97%; QoQ -7.04%; Gross Margin: 37.44%
Operating Income: USD 138.6m; YoY +65.0%; QoQ -32.75%; Operating Margin: 15.40%
EBITDA: USD 225.2m; EBITDA Margin: 25.02%
Total Other Income/Expenses Net: USD -48.9m
Income Before Tax: USD 89.7m; Net Income: USD 62.6m; Net Margin: 6.96%
EPS: USD 0.15; Diluted EPS: USD 0.15; Weighted Avg Shs: 429.9m
Cash Flow: Operating Cash Flow USD 206.9m; Capex USD -103.2m; Free Cash Flow USD 103...
Financial Highlights
Revenue: USD 899.9m; YoY -10.5%; QoQ -5.6%. Gross Profit: USD 336.9m; YoY -17.97%; QoQ -7.04%; Gross Margin: 37.44%
Operating Income: USD 138.6m; YoY +65.0%; QoQ -32.75%; Operating Margin: 15.40%
EBITDA: USD 225.2m; EBITDA Margin: 25.02%
Total Other Income/Expenses Net: USD -48.9m
Income Before Tax: USD 89.7m; Net Income: USD 62.6m; Net Margin: 6.96%
EPS: USD 0.15; Diluted EPS: USD 0.15; Weighted Avg Shs: 429.9m
Cash Flow: Operating Cash Flow USD 206.9m; Capex USD -103.2m; Free Cash Flow USD 103.7m
Balance Sheet: Total Assets USD 6.787b; Total Liabilities USD 4.530b; Total Stockholders’ Equity USD 2.256b
Liquidity and Leverage: Cash USD 391.6m; Net Debt USD 2.218b; Total Debt USD 2.610b; Current Ratio ~3.8x
Key Ratios: EBITDARatio 0.2503; Operating Income Ratio 0.1540; Net Income Ratio 0.0696; ROE not disclosed; ROA not disclosed
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
899.90M |
-10.45% |
-5.60% |
| Gross Profit |
336.90M |
-17.97% |
-7.04% |
| Operating Income |
138.60M |
65.00% |
-32.75% |
| Net Income |
62.60M |
12.59% |
-55.82% |
| EPS |
0.15 |
15.38% |
-54.55% |
Management Commentary
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Forward Guidance
Management did not publish formal full-year guidance for 2026 in the QQ1 release. In the near term, the trajectory will be driven by housing-market demand in North America, with potential tailwinds from the broader construction cycle and ongoing demand for fiber cement building products. The company’s strong liquidity and positive free cash flow provide optionality to accelerate deleveraging, fund capacity expansions, or selectively deploy capital toward share repurchases or strategic investments if market conditions stabilize. Key factors to monitor include: housing starts and replacement cycles in the US; input cost dynamics (cement, fiber, energy); pass-through pricing power; geographic mix effects (North America, Asia Pacific, Europe); and any changes in working capital efficiency that could alter cash conversion.