Exchange: OTC | Sector: Basic Materials | Industry: Construction Materials
Q1 2025
Published: Jun 30, 2024
Earnings Highlights
Revenue of $990.97M up 3.8% year-over-year
EPS of $0.36 increased by 0% from previous year
Gross margin of 40.0%
Net income of 155.30M
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James Hardie Industries plc (JHIUF) QQ1 2025 Results — North America-driven Fiber Cement Strength with Solid Margins and Cash Generation
Executive Summary
James Hardie Industries reported QQ1 2025 results with durable top-line execution and continued margin discipline. Revenue reached USD 990.97 million, up 3.84% year-over-year, while gross profit of USD 396.53 million yielded a gross margin of approximately 40.0%. Operating income was USD 235.40 million (operating margin ~23.75%), contributing to a net income of USD 155.30 million and earnings per share (EPS) of USD 0.36. The company generated USD 185.10 million of cash from operations and free cash flow of USD 49.05 million, underscoring meaningful cash generation to support capex and debt management.
Overall financial health remains solid. James Hardie ended the quarter with a net debt position of USD 817.1 million and a liquidity pool comprising cash and short-term investments of USD 568.8 million, supporting near-term flexibility. Balance-sheet metrics reflect a diversified asset base (total assets USD 4.93 billion; equity USD 1.94 billion) and a moderate leverage profile (total debt to capitalization ~38.3%; debt to equity ~0.62%). With a robust margin framework (net margin ~15.7%, EBITDA margin ~28.8%), the business demonstrates resilience against near-term cyclicality in construction activity.
Note: Transcript-based management commentary was not provided in the supplied dataset. Where applicable, the analysis relies on reported results, and forward-looking commentary is framed around prevailing market dynamics and the company’s strategic priorities.
Cash flow and liquidity:
- Net cash provided by operating activities: USD 185.10 million
- Capex (investing activities): USD -129.80 million
- Free Cash Flow: USD 49.05 million
- Net change in cash: USD -32.50 million; Cash at end of period: USD 383.30 million; Cash at beginning: USD 415.80 million
- Cash and short-term investments: USD 568.80 million (including USD 360.10 million cash and USD 185.50 million short-term investments)
Balance sheet:
- Total assets: USD 4.928 billion
- Total liabilities: USD 2.991 billion; Total stockholders’ equity: USD 1.938 billion
- Current assets: USD 1.443 billion; Current liabilities: USD 745.30 million; Current ratio: 1.94; Quick ratio: 1.44; Cash ratio: 0.48
- Property, plant and equipment (net): USD 2.144 billion; Goodwill: USD 191.0 million; Intangibles: USD 146.9 million; Net debt: USD 817.1 million
- Debt profile: Long-term debt USD 1.1726 billion; Total debt USD 1.2004 billion; Debt-to-capitalization ~38.3%; Debt-to-equity ~0.62%; Interest coverage ~138.5x
Valuation and efficiency:
- Price-to-book: 6.68x; Price-to-sales: 12.86x; P/E: 20.78x; Enterprise value multiple: 48.22x
- Return on assets: 3.16%; Return on equity: 8.03%; Return on capital employed: 5.64%
- Free Cash Flow per share: USD 0.115; Operating Cash Flow per share: USD 0.418
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
990.97M
3.84%
-1.39%
Gross Profit
396.53M
6.19%
-3.45%
Operating Income
235.40M
0.64%
180.24%
Net Income
155.30M
-1.58%
179.32%
EPS
0.36
0.00%
176.92%
Key Financial Ratios
currentRatio
1.94
grossProfitMargin
40%
operatingProfitMargin
23.5%
netProfitMargin
15.5%
returnOnAssets
3.16%
returnOnEquity
8.03%
debtEquityRatio
0.62
operatingCashFlowPerShare
$0.42
freeCashFlowPerShare
$0.12
priceToBookRatio
6.68
priceEarningsRatio
20.78
Net Income vs. Revenue
Expense Breakdown
Management Commentary
No earnings call transcript data provided in the dataset. Transcript highlights cannot be generated without management commentary from the QQ1 2025 call.
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Forward Guidance
Explicit forward-looking targets or guidance were not disclosed in the provided data. Based on the results and industry context, the outlook rests on: (1) ongoing demand for fiber cement and building products in North America, (2) geographic diversification into Asia Pacific and Europe supporting resilient volumes, and (3) continued cost discipline to protect margins amid input-cost volatility. Investors should monitor: housing market activity in the U.S. and other core markets, raw material and logistics costs, FX exposure, and capex intensity related to manufacturing capacity and technology within James Hardie’s three regional segments. Achievability of a favorable margin trajectory will hinge on sustaining high-margin product mix, efficiency gains from scale, and favorable project mix in commercial and multi-family construction.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
JHIUF Focus
40.01%
23.50%
8.03%
20.78%
CPAC
36.50%
20.50%
3.99%
9.37%
SUM
10.60%
2.05%
-1.59%
-27.91%
EXP
30.70%
28.10%
9.91%
13.50%
CRH
27.70%
0.43%
0.58%
125.79%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Bullish with discipline. James Hardie demonstrates a resilient margin framework and strong cash generation, supported by a diversified geographic footprint and a differentiated fiber cement product portfolio. The QQ1 2025 results show revenue growth alongside solid profitability and liquidity, which supports ongoing capex and debt management. However, elevated valuation metrics and macro exposure to housing cycles warrant cautious positioning. Key catalysts include continued NA housing demand, successful expansion in APAC/Europe, and sustained cost controls. Investors should monitor housing-market trends, input costs, and FX movements, as well as any guidance updates from management that clarify growth targets and capital-allocation priorities.
Key Investment Factors
Growth Potential
Solid growth potential driven by NA fiber cement demand and ongoing geographic diversification into Asia Pacific and Europe. The company’s differentiated product portfolio and high-margin fiber cement solutions position it to capture share in new residential, commercial, and fire-protection segments as construction activity recovers and housing demand remains resilient.
Profitability Risk
Key risks include cyclicality of the housing market, input cost volatility (cement, fibers, energy), supply-chain disruption, and USD FX exposures given multi-regional operations. High valuation metrics (P/B ~6.7x, P/E ~20.8x) imply sensitivity to downgrades if growth or margin progress decelerates. Competitive pressure from larger conglomerates in construction materials could affect pricing power and mix.
Financial Position
Strengthened liquidity with USD 568.8 million in cash and equivalents/short-term investments and a stable net debt position (USD 817.1 million). Current ratio ~1.94 and quick ratio ~1.44 indicate solid short-term liquidity, while debt-to-capitalization at ~38.3% reflects a moderate leverage profile. Free cash flow generation (~USD 49.1 million) supports capex and debt service while preserving optionality for strategic investments.
SWOT Analysis
Strengths
High gross margin (~40%) and robust EBITDA margin (~28.8%) indicate strong cost control and product mix efficiency.
Diversified geographic exposure (North America, Asia Pacific, Europe) reduces regional cyclicality.
Solid balance sheet with ample liquidity (cash and equivalents + short-term investments ~USD 568.8M) and moderate leverage (debt-to-capitalization ~38%).
Catalysts from fiber cement adoption, fire-protection boards, and durable exterior products support steady demand.
Weaknesses
Exposure to cyclical housing market in the core North American market.
Relatively high valuation metrics may leave limited downside buffer; sensitivity to material costs and FX.
Dependence on capital-intensive manufacturing with ongoing capex requirements.
Opportunities
Geographic diversification could unlock growth in APAC and Europe as construction markets mature.
Product mix optimization toward higher-margin interior/exterior fiber cement offerings and related boards.
Potential moderate M&A or capacity expansions to capitalize on demand tailwinds and scale benefits.
Threats
Macro slowdown in housing or commercial construction cycles could pressure volumes.
Raw material cost volatility, supply chain disruptions, and currency fluctuations.
Intense competition in the global building-materials space from diversified competitors.
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