Executive Summary
James Hardie reported Q4 2024 revenue of $1.0049 billion, up 5.3% year over year, supported by ongoing demand for durable fiber cement products in the NA, APAC, and Europe building-materials markets. Despite top-line growth, operating income declined sharply year over year, delivering an 8.36% operating margin and a net margin of 5.53%, as the company faced higher operating costs and a less favorable mix relative to the prior year. EBITDA stood at $153.3 million, and net income was $55.6 million, or $0.13 per share. Free cash flow reached $43.6 million, with CFO at $164.7 million, underscoring resilient cash generation in a cyclically sensitive industry. The balance sheet remains healthy, featuring cash of $415.8 million and net debt of $836.0 million, with a debt-to-capitalization ratio of 39.3% and a current ratio of 1.79. Valuation remains premium relative to peers, reflected in a price-to-book around 9.0 and an implied EV/EBITDA multiple in the 60s, signaling confidence in long-term brand strength and geographic reach despite near-term earnings volatility.
Looking ahead, the absence of formal forward guidance in the QQ4 press materials leaves investors focused on macro housing cycles, regional mix shifts, and structural cost efficiency initiatives. Management commentary in the period is implied rather than explicit in transcript form, so the read-through centers on margin discipline, geographic diversification, and cash-flow durability as the company navigates a cyclically driven environment. Overall, the stock presents a quality, though richly valued, exposure to the construction-materials cycle with meaningful leverage to housing markets and infrastructure restoration in NA and international markets.
Key Performance Indicators
QoQ: -64.49% | YoY:-64.09%
QoQ: -61.68% | YoY:-64.77%
QoQ: -60.61% | YoY:-63.89%
Key Insights
Revenue: $1,004,900,000; YoY +5.30%; QoQ +1.88% | Gross Profit: $410,700,000; Gross Margin 40.87%; YoY +9.99%; QoQ +1.66% | Operating Income: $84,000,000; Operating Margin 8.36%; YoY -64.09%; QoQ -64.49% | EBITDA: $153,300,000; EBITDA Margin 15.26% | Net Income: $55,600,000; Net Margin 5.53%; YoY -64.77%; QoQ -61.68% | EPS: $0.13; YoY -63.89%; QoQ -60.61% | Cash Flow from Operations (CFO): $164,700,000 | Capital Expenditures: $(121,100,000) | Free Cash Flow (FCF): $43,600,000 | Free Cash Flow pe...
Financial Highlights
Revenue: $1,004,900,000; YoY +5.30%; QoQ +1.88% | Gross Profit: $410,700,000; Gross Margin 40.87%; YoY +9.99%; QoQ +1.66% | Operating Income: $84,000,000; Operating Margin 8.36%; YoY -64.09%; QoQ -64.49% | EBITDA: $153,300,000; EBITDA Margin 15.26% | Net Income: $55,600,000; Net Margin 5.53%; YoY -64.77%; QoQ -61.68% | EPS: $0.13; YoY -63.89%; QoQ -60.61% | Cash Flow from Operations (CFO): $164,700,000 | Capital Expenditures: $(121,100,000) | Free Cash Flow (FCF): $43,600,000 | Free Cash Flow per Share: $0.0778 | Cash at End of Period: $415,800,000 | Net Debt: $836,000,000 | Total Debt: $1,201,000,000 | Current Ratio: 1.79; Quick Ratio: 1.37 | Debt to Capitalization: 39.3% | Interest Coverage: 9.98x | ROE: 2.99%; ROA: 1.13%; Asset Turnover: 0.203 | P/BV: 9.01; P/S: 16.80; P/E: 75.29 | Enterprise Value Multiple: 62.55
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
1.00B |
5.30% |
1.88% |
| Gross Profit |
410.70M |
9.99% |
1.66% |
| Operating Income |
84.00M |
-64.09% |
-64.49% |
| Net Income |
55.60M |
-64.77% |
-61.68% |
| EPS |
0.13 |
-63.89% |
-60.61% |
Key Financial Ratios
operatingProfitMargin
23%
operatingCashFlowPerShare
$0.35
freeCashFlowPerShare
$0.08
Management Commentary
Note: No earnings call transcript data were provided in the dataset for QQ4 2024. As a result, there are no management quotes or theme-by-theme quotes to extract in this section. If a transcript becomes available, this section can be updated to reflect themes such as strategic priorities, cost-control initiatives, geographic mix expectations, and product-cycle commentary.
Forward Guidance
There is no disclosed forward guidance in the QQ4 2024 materials. Given the cyclicality of the construction materials sector and the company’s geographic diversification, investors should monitor: (1) US housing starts and remodeling activity, (2) APAC demand dynamics and currency effects, (3) European building activity, (4) raw material costs and input inflation, (5) supply-chain resilience and manufacturing efficiency, and (6) the trajectory of interest rates affecting construction financing. Based on the current data, the expectation is for modest top-line growth to continue with margin discipline and ongoing cash-flow generation. Achievability of any implied targets will hinge on a sustained improvement in the housing cycle and continued execution of cost-reduction and productivity initiatives.