James Hardie Industries plc 6-K, filed Feb 19, 2025
James Hardie Industries plc (JHX)
6-K
2025-02-19
For: 2025-02-19
View Original
Added on
April 06, 2026
About this 6-K
James Hardie Industries plc filed this 6-K on February 19, 2025.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer Pursuant to Rule 13a-16 or 15d-16
under the Securities Exchange Act of 1934
For the Month of February 2025
1-15240
(Commission File Number)
JAMES HARDIE INDUSTRIES plc
(Translation of registrant’s name into English)
1st Floor, Block A,
One Park Place
Upper Hatch Street, Dublin 2, D02, FD79, Ireland
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F..X.... Form 40-F.........
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): Not Applicable
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): Not Applicable
TABLE OF CONTENTS
2
Forward-Looking Statements
This Form 6-K contains forward-looking statements. James Hardie Industries plc (the “company”) may from time to time make forward-looking statements in its periodic reports filed with or furnished to the Securities and Exchange Commission, on Forms 20-F and 6-K, in its annual reports to shareholders, in offering circulars, invitation memoranda and prospectuses, in media releases and other written materials and in oral statements made by the company’s officers, directors or employees to analysts, institutional investors, existing and potential lenders, representatives of the media and others. Statements that are not historical facts are forward-looking statements and such forward-looking statements are statements made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995.
Examples of forward-looking statements include:
•statements about the company’s future performance;
•projections of the company’s results of operations or financial condition;
•statements regarding the company’s plans, objectives or goals, including those relating to strategies, initiatives, competition, acquisitions, dispositions and/or its products;
•expectations concerning the costs associated with the suspension or closure of operations at any of the company’s plants and future plans with respect to any such plants;
•expectations concerning the costs associated with the significant capital expenditure projects at any of the company’s plants and future plans with respect to any such projects;
•expectations regarding the extension or renewal of the company’s credit facilities including changes to terms, covenants or ratios;
•expectations concerning dividend payments and share buy-backs;
•statements concerning the company’s corporate and tax domiciles and structures and potential changes to them, including potential tax charges;
•statements regarding tax liabilities and related audits, reviews and proceedings;
•statements regarding the possible consequences and/or potential outcome of legal proceedings brought against us and the potential liabilities, if any, associated with such proceedings;
•expectations about the timing and amount of contributions to AICF, a special purpose fund for the compensation of proven Australian asbestos-related personal injury and death claims;
•expectations concerning the adequacy of the company’s warranty provisions and estimates for future warranty-related costs;
•statements regarding the company’s ability to manage legal and regulatory matters (including but not limited to product liability, environmental, intellectual property and competition law matters) and to resolve any such pending legal and regulatory matters within current estimates and in anticipation of certain third-party recoveries; and
•statements about economic or housing market conditions in the regions in which we operate, including but not limited to, the levels of new home construction and home renovations, unemployment levels, changes in consumer income, changes or stability in housing values, the availability of mortgages and other financing, mortgage and other interest rates, housing affordability and supply, the levels of foreclosures and home resales, currency exchange rates, and builder and consumer confidence.
Words such as “believe,” “anticipate,” “plan,” “expect,” “intend,” “target,” “estimate,” “project,” “predict,” “forecast,” “guideline,” “aim,” “will,” “should,” “likely,” “continue,” “may,” “objective,” “outlook” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Readers are cautioned not to place undue reliance on these forward-looking statements and all such forward-looking statements are qualified in their entirety by reference to the following cautionary statements.
3
Forward-looking statements are based on the Company’s current expectations, estimates and assumptions and because forward-looking statements address future results, events and conditions, they, by their very nature, involve inherent risks and uncertainties, many of which are unforeseeable and beyond the Company’s control. Such known and unknown risks, uncertainties and other factors may cause actual results, performance or other achievements to differ materially from the anticipated results, performance or achievements expressed, projected or implied by these forward-looking statements. These factors, some of which are discussed under “Risk Factors” in Section 3 of the Form 20-F filed with the Securities and Exchange Commission on 20 May 2024, include, but are not limited to: all matters relating to or arising out of the prior manufacture of products that contained asbestos by current and former Company subsidiaries; required contributions to AICF, any shortfall in AICF funding and the effect of currency exchange rate movements on the amount recorded in the Company’s financial statements as an asbestos liability; compliance with and changes in tax laws and treatments; competition and product pricing in the markets in which the Company operates; the consequences of product failures or defects; exposure to environmental, asbestos, putative consumer class action or other legal proceedings; general economic and market conditions; the supply and cost of raw materials; possible increases in competition and the potential that competitors could copy the Company’s products; compliance with and changes in environmental and health and safety laws; risks of conducting business internationally; compliance with and changes in laws and regulations; currency exchange risks; dependence on customer preference and the concentration of the Company’s customer base; dependence on residential and commercial construction markets; the effect of adverse changes in climate or weather patterns; use of accounting estimates and financial condition and all other risks identified in the Company’s reports filed with Australian, Irish and US securities regulatory agencies and exchanges (as appropriate). The Company cautions you that the foregoing list of factors is not exhaustive and that other risks and uncertainties may cause actual results to differ materially from those referenced in the Company’s forward-looking statements. Forward-looking statements speak only as of the date they are made and are statements of the Company’s current expectations concerning future results, events and conditions. The Company assumes no obligation to update any forward-looking statements or information except as required by law.
4
EXHIBIT INDEX
| Exhibit No. | Description | |||||||
| Results for Announcement to the Market | ||||||||
| Earnings Release | ||||||||
| Management’s Analysis of Results | ||||||||
| Earnings Presentation | ||||||||
| Condensed Consolidated Financial Statements | ||||||||
| Change in substantial holding | ||||||||
| Change in substantial holding | ||||||||
5
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| James Hardie Industries plc | ||||||||
Date: 19 February 2025 | By: /s/ Aoife Rockett | |||||||
Aoife Rockett | ||||||||
Company Secretary | ||||||||
6
EXHIBIT INDEX
| Exhibit No. | Description | |||||||
| Results for Announcement to the Market | ||||||||
| Earnings Release | ||||||||
| Management’s Analysis of Results | ||||||||
| Earnings Presentation | ||||||||
| Condensed Consolidated Financial Statements | ||||||||
| Change in substantial holding | ||||||||
| Change in substantial holding | ||||||||
7
Exhibit 99.1
James Hardie Industries plc 1st Floor, Block A One Park Place Upper Hatch Street, Dublin 2 D02 FD79, Ireland T: +353 (0) 1 411 6924 F: +353 (0) 1 479 1128 | |||||
19 February 2025
The Manager
Company Announcements Office
Australian Securities Exchange Limited
20 Bridge Street
SYDNEY NSW 2000
Dear Sir/Madam
Results for Announcement to the Market
James Hardie announced today its results for the 3nd quarter and nine months ended 31 December 2024 and has filed the following documents with the ASX:
| • | Earnings Release | ||||
| • | Management's Analysis of Results | ||||
| • | Earnings Presentation | ||||
| • | Condensed Consolidated Financial Statements | ||||
Copies of these documents are available on James Hardie’s investor relations website at
https://ir.jameshardie.com.au/financial-information/financial-results.
https://ir.jameshardie.com.au/financial-information/financial-results.
| Yours faithfully | ||
Joe Ahlersmeyer, CFA | ||
| Vice President, Investor Relations | ||
This announcement has been authorized for release by the Board of Directors of James Hardie Industries plc.
1st Floor, Block A, One Park Place, Upper Hatch Street, Dublin 2, D02 FD79, Ireland.
Directors: Anne Lloyd (Chairperson, USA), Peter-John Davis (Aus), Persio Lisboa (USA), Renee Peterson (USA),
John Pfeifer (USA), Rada Rodriguez (Sweden), Suzanne B. Rowland (USA), Nigel Stein (UK), Harold Wiens (USA).
John Pfeifer (USA), Rada Rodriguez (Sweden), Suzanne B. Rowland (USA), Nigel Stein (UK), Harold Wiens (USA).
Chief Executive Officer and Director: Aaron Erter (USA)
Company number: 485719
ARBN: 097 829 895
Earnings Release February 19, 2025 |  | ||||
Exhibit 99.2
James Hardie Achieves Strong Third Quarter FY25 Results
Providing Confidence to Reaffirm FY25 Guidance and FY26 Growth Plans
Q3 FY25 GAAP Operating Income of $206 million
Q3 FY25 Adjusted EBITDA of $262 million and Adjusted EBITDA Margin of 27.5%
Average Net Sales Price Growth Across All Regions
Reaffirms 2H and FY25 Guidance for North America Volume and EBIT Margin, Total Adjusted Net Income
Planning for Growth and Margin Expansion Across Regions for FY26
James Hardie Industries plc (ASX / NYSE: JHX) ("James Hardie" or the "Company"), a leader in providing high performance, low maintenance building products and solutions, and a company inspiring how communities design build and grow, today announced results for its third quarter ending December 31, 2024. Speaking to the results, Aaron Erter, CEO said, “We delivered strong business and financial results in the third quarter, and our year-to-date performance shows that we have a strong handle on our business as we continue to scale the organization and invest to grow profitably. Our teams are focused on safely delivering the highest quality products, solutions and services to our customers, and we are executing on our strategy to outperform our end-markets.”
Mr. Erter continued, “We are winning by partnering with our customers, contractors and homeowners, and this success propels our organization forward and fuels my optimism around the future of James Hardie. We have the strongest team in the industry and the right strategy to go after our material conversion opportunity. In our North American business, our results to date represent a double-digit five-year sales CAGR leading to more than +400bps of Adjusted EBITDA margin expansion, a clear demonstration of the inherent strength of our unique value proposition and the underlying momentum in our strategy.”
Rachel Wilson, CFO said, “Our strong margins underpin our cash flow, and we are funding our capital priorities with cash generated by our operations. In response to current market conditions, we have demonstrated a balanced approach between cost discipline and funding growth. This has positioned us well to accelerate our outperformance, invest in growth and execute on our capital allocation framework.”
Third Quarter Highlights
•Net Sales of $953 million, down (3%)
•GAAP Operating income of $206 million; GAAP Operating margin of 21.6%; GAAP Net income of $142 million; and GAAP Diluted EPS of $0.33
•Adjusted EBITDA of $262 million, down (7%) with Adjusted EBITDA margin of 27.5%, down (120bps)
•Adjusted Net Income of $154 million, down (15%)
•Adjusted Diluted EPS of $0.36, down (13%)
Earnings Release: James Hardie - Third Quarter Ended December 31, 2024 | 1 | |||||||
Earnings Release February 19, 2025 | | ||||
Segment Business Update and Results | ||
North America Fiber Cement
In North America, the Company is outperforming its end markets through a superior total value proposition and driving leading margins despite raw material headwinds. Supportive housing fundamentals and significant material conversion opportunity drive the team's focus on preparing the North America manufacturing footprint for market recovery. The Company is investing across the value chain and growing its contractor base to capture the repair & remodel opportunity. Similarly, in new construction, efforts to deepen exclusivity and increase trim attachment rates support growth and share gain with large homebuilders including recently signing two national, multi-year exclusive hard siding and trim agreements with M/I Homes and David Weekley Homes, who are among the largest homebuilders in the US. During the quarter and comparing against record results in the prior year, net sales decreased (1%). Volumes declined (3%) due to continued market weakness, particularly in multi-family, partially offset by company specific efforts to gain share in single-family new construction and repair & remodel. Sales also benefited from a higher average net sales price, resulting from the January 2024 price increase. Volume of Exterior products declined low single-digits year-over-year, but rose +5% sequentially. Volume of Interior products declined mid single-digits on both a year-over-year and sequential basis. EBIT margin decreased (360bps) to 29.1%, due to higher pulp and cement costs as well as unfavorable production cost absorption, partially offset by Hardie Operating System (HOS) savings. Startup costs were also higher in the quarter, related to our Prattville facility. Excluding depreciation and amortization expense, which rose +23% to $41 million, EBITDA declined (8%) to $251 million with EBITDA margin of 34.8%, a decrease of (250bps) attributable to similar drivers of EBIT margin.
Asia Pacific Fiber Cement
In Australia & New Zealand, the Company is increasing share through new customer acquisitions and project conversion enabled by customer integration. The Company is influencing how homeowners build, and driving growth through Co-Creation and leveraging the James Hardie brand. The teams are innovating to accelerate material conversion with a key focus on new construction, specifically the conversion of brick & masonry. Overall, while market demand remains challenged, the Asia Pacific team is focused on finding further efficiencies and driving HOS savings to underpin the segment's consistent profitability. During the quarter, net sales decreased (13%) in Australian dollars, due to lower volumes of (28%) partially offset by a higher average net sales price of +20%. The decline in volumes and the increase in average net sales price was primarily attributable to our decision to cease manufacturing and wind down commercial operations in the Philippines. Australia & New Zealand together saw a low single-digit decrease in volume and a slight increase in average net sales price, leading to relatively flat net sales. EBIT margin rose +180bps to 29.3%, primarily attributable to the Philippines decision. Margins also rose modestly in Australia & New Zealand, due primarily to slightly positive average net sales price and HOS savings. Excluding depreciation and amortization expense, which increased +17% to $5 million, EBITDA declined (3%) to $40 million with EBITDA margin of 33.5%, an increase of +290bps attributable to the Philippines decision.
Europe Building Products
Markets across Europe remain challenged, particularly in Germany where improvement is anticipated to be more gradual, while in the UK, the Company is well-positioned to capture potential improvement in residential construction. Growth in high-value products remains a strategic priority, as leveraging a broader and deeper product portfolio should accelerate share gains and customer wins. Highlighting the strength of our offering, earlier this fiscal year Hardie® Architectural Panel received the prestigious iF Design Award, recognizing our unwavering commitment to creating products that seamlessly blend form and function. During the quarter, net sales declined (1%) in Euros, including a (4%) impact related to a favorable customer rebate true-up in the prior year, partially offset by a higher average net sales price of +4%, driven by a price increase earlier this fiscal year. EBIT margin decreased (340bps) to 3.1%, although profitability improved, when excluding the unfavorable comparison created by the prior year customer rebate true-up. Excluding depreciation and amortization expense, which rose +9% to $8 million, EBITDA declined (22%) to $12 million with EBITDA margin of 10.3%, a (260bps) decrease similarly explained by the customer rebate true-up impact.
Earnings Release: James Hardie - Third Quarter Ended December 31, 2024 | 2 | |||||||
Earnings Release February 19, 2025 | | ||||
Market Outlook and Guidance, Planning Assumptions and Long-Term Aspirations | ||
Full Year FY25 Market Outlook and Guidance
Speaking to the Company's market outlook, Mr. Erter said, “With our fiscal year drawing to a close, I reflect with pride on the resilience our teams have shown throughout FY25. The opportunity in the years to come is substantial, and the investments we have made throughout the year are foundational enablers of scale and critical accelerators of our future growth. But this year is not over, and our business leaders remain focused on finishing strong to cement a strong foundation for the coming years. Our market demand expectations have not changed, but importantly, neither has our commitment to outperforming our end markets and managing the business decisively to sustain our peer-leading profitability.”
Ms. Wilson added with respect to financial guidance, “Despite challenging end markets and raw material headwinds, we remain well-positioned to deliver volumes within our original guidance range. Our Hardie Operating System initiatives, together with efforts to rationalize and prioritize expenses have helped mitigate uncontrollable headwinds to margins. We delivered a solid third quarter, which gives us increased confidence in reiterating both our second half and full fiscal year guidance across each of our operating metrics.”
•North America Volumes: At least 2.95 billion standard feet (unchanged)
•North America EBIT Margin: At least 29.3% (unchanged)
•Adjusted Net Income: At least $635 million (unchanged)
•Capital Expenditures: ~$420 million (prev. $420 million to $440 million)
Full Year FY26 Planning Assumptions
Ms. Wilson added with respect to FY26 planning assumptions, “We are committed to driving profitable growth in our operating businesses, and it is imperative that we are aligned as an organization around making decisions that drive cash generation, which funds our growth investments and capital return priorities. We have built our near-, medium- and long-term plans around this organizational imperative, and to maintain alignment between how we communicate externally and how we run our business, we plan to provide guidance for sales and EBITDA beginning with FY26, in lieu of volume, EBIT and net income. To assist in this transition and to reinforce our commitment to also growing EBIT and net income, we are sharing additional non-cash and non-operating modeling assumptions."
•Total Depreciation & Amortization Expense: ~$225mm vs. ~$210mm in FY25
•Interest Expense: ~$60mm vs. ~$62mm in FY25
•Capitalized Interest: ~($20mm) vs. ~($20mm) in FY25
•Adjusted Effective Tax Rate: Relatively Flat vs. 23.0 to 24.0% in FY25
Note: Assumptions are subject to change, but reflect current in-service fixed assets, debt balances and market interest rates.
Mr. Erter concluded by saying, “Thanks to the hard work of our teams, and our decision to boldly continue investing through the softer environment, we are set up to sustain our leading position in the industry and accelerate our outperformance as markets recover. We continue to plan for recovery and growth in both repair & remodel and new construction. Our teams continuously evolve our plans to deliver sustained market outperformance and capture the value that our products demand in the marketplace. While it is still too early to quantify our expected results for FY26, we are planning for sales growth and Adjusted EBITDA margin expansion across each of our segments, and for the company as a whole.”
Earnings Release: James Hardie - Third Quarter Ended December 31, 2024 | 3 | |||||||
Earnings Release February 19, 2025 | | ||||
Cash Flow, Capital Investment & Allocation | ||
Operating cash flow totaled $657 million during the nine months of FY25, driven by $734 million of net income, adjusted for non-cash items, and lower working capital of $50 million, partially offset by $88 million of asbestos claims paid. Capital expenditures were $333 million.
During the nine months of FY25, the Company invested $134 million related to capacity expansion, with key milestones including commencement of production at the Company's Westfield, Massachusetts ColorPlus® facility in April, as well as the Company's Prattville Alabama facility, specifically on Sheet Machine 3 in September. Throughout the remainder of FY25, the Company plans to continue construction of Sheet Machine 4 and ColorPlus® finishing capacity, both at Prattville, Alabama, continue the ongoing brownfield expansion in Orejo, Spain, and further its planning for previously announced brownfield and greenfield capacity in North America.
During the nine months of FY25, the Company repurchased 4.5 million shares for a total of $150 million, completing the previously-announced repurchase program. In November, the Company's Board of Directors approved a new repurchase program, under which the Company is authorized to purchase up to $300 million of shares through October of 2025.
Earnings Release: James Hardie - Third Quarter Ended December 31, 2024 | 4 | |||||||
Earnings Release February 19, 2025 | | ||||
Key Financial Information | ||
| Q3 FY25 | Q3 FY24 | Change | Q3 FY25 | Q3 FY24 | Change | ||||||||||||||||||||||||||||||||||||||||||||||||
| Group | (US$ millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Sales | 953.3 | 978.3 | (3%) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| EBIT | 206.1 | 226.1 | (9%) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted EBIT | 207.0 | 234.1 | (12%) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| EBIT Margin (%) | 21.6 | 23.1 | (1.5 pts) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted EBIT Margin (%) | 21.7 | 23.9 | (2.2 pts) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA | 262.1 | 280.4 | (7%) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA Margin (%) | 27.5 | 28.7 | (1.2 pts) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Income | 141.7 | 145.1 | (2%) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted Net Income | 153.6 | 179.9 | (15%) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Diluted EPS - US$ per share | 0.33 | 0.33 | —% | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted Diluted EPS - US$ per share | 0.36 | 0.41 | (13%) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| North America Fiber Cement | (US$ millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Sales | 719.3 | 727.0 | (1%) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| EBIT | 209.3 | 237.8 | (12%) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| EBIT Margin (%) | 29.1 | 32.7 | (3.6 pts) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| EBITDA | 250.5 | 271.3 | (8%) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| EBITDA Margin (%) | 34.8 | 37.3 | (2.5 pts) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Asia Pacific Fiber Cement | (US$ millions) | (A$ millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Sales | 118.1 | 133.8 | (12%) | 180.1 | 206.3 | (13%) | |||||||||||||||||||||||||||||||||||||||||||||||
| EBIT | 34.8 | 36.7 | (5%) | 52.8 | 56.7 | (7%) | |||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted EBIT | 34.8 | 36.7 | (5%) | 52.8 | 56.7 | (7%) | |||||||||||||||||||||||||||||||||||||||||||||||
| EBIT Margin (%) | 29.3 | 27.5 | 1.8 pts | 29.3 | 27.5 | 1.8 pts | |||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted EBIT Margin (%) | 29.3 | 27.5 | 1.8 pts | 29.3 | 27.5 | 1.8 pts | |||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA | 39.7 | 40.9 | (3%) | 60.3 | 63.2 | (5%) | |||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA Margin (%) | 33.5 | 30.6 | 2.9 pts | 33.5 | 30.6 | 2.9 pts | |||||||||||||||||||||||||||||||||||||||||||||||
| Europe Building Products | (US$ millions) | (€ millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Sales | 115.9 | 117.5 | (1%) | 108.6 | 109.3 | (1%) | |||||||||||||||||||||||||||||||||||||||||||||||
| EBIT | 3.6 | 7.6 | (53%) | 3.4 | 7.1 | (52%) | |||||||||||||||||||||||||||||||||||||||||||||||
| EBIT Margin (%) | 3.1 | 6.5 | (3.4 pts) | 3.1 | 6.5 | (3.4 pts) | |||||||||||||||||||||||||||||||||||||||||||||||
| EBITDA | 11.9 | 15.2 | (22%) | 11.2 | 14.1 | (21%) | |||||||||||||||||||||||||||||||||||||||||||||||
| EBITDA Margin (%) | 10.3 | 12.9 | (2.6 pts) | 10.3 | 12.9 | (2.6 pts) | |||||||||||||||||||||||||||||||||||||||||||||||
Earnings Release: James Hardie - Third Quarter Ended December 31, 2024 | 5 | |||||||
Earnings Release February 19, 2025 | | ||||
| 9 Months FY25 | 9 Months FY24 | Change | 9 Months FY25 | 9 Months FY24 | Change | ||||||||||||||||||||||||||||||
| Group | (US$ millions) | ||||||||||||||||||||||||||||||||||
| Net Sales | 2,906.0 | 2,931.4 | (1%) | ||||||||||||||||||||||||||||||||
| EBIT | 593.8 | 683.4 | (13%) | ||||||||||||||||||||||||||||||||
| Adjusted EBIT | 654.0 | 708.3 | (8%) | ||||||||||||||||||||||||||||||||
| EBIT Margin (%) | 20.4 | 23.3 | (2.9 pts) | ||||||||||||||||||||||||||||||||
| Adjusted EBIT Margin (%) | 22.5 | 24.2 | (1.7 pts) | ||||||||||||||||||||||||||||||||
| Adjusted EBITDA | 810.8 | 845.0 | (4%) | ||||||||||||||||||||||||||||||||
| Adjusted EBITDA Margin (%) | 27.9 | 28.8 | (0.9 pts) | ||||||||||||||||||||||||||||||||
| Net Income | 380.4 | 454.6 | (16%) | ||||||||||||||||||||||||||||||||
| Adjusted Net Income | 488.2 | 533.3 | (8%) | ||||||||||||||||||||||||||||||||
| Diluted EPS - US$ per share | 0.88 | 1.03 | (15%) | ||||||||||||||||||||||||||||||||
| Adjusted Diluted EPS - US$ per share | 1.13 | 1.21 | (7%) | ||||||||||||||||||||||||||||||||
| Operating Cash Flow | 657.4 | 749.5 | (12%) | ||||||||||||||||||||||||||||||||
| North America Fiber Cement | (US$ millions) | ||||||||||||||||||||||||||||||||||
| Net Sales | 2,144.4 | 2,156.2 | (1%) | ||||||||||||||||||||||||||||||||
| EBIT | 638.5 | 688.1 | (7%) | ||||||||||||||||||||||||||||||||
| EBIT Margin (%) | 29.8 | 31.9 | (2.1 pts) | ||||||||||||||||||||||||||||||||
| EBITDA | 754.0 | 787.7 | (4%) | ||||||||||||||||||||||||||||||||
| EBITDA Margin (%) | 35.2 | 36.5 | (1.3 pts) | ||||||||||||||||||||||||||||||||
| Asia Pacific Fiber Cement | (US$ millions) | (A$ millions) | |||||||||||||||||||||||||||||||||
| Net Sales | 401.8 | 421.3 | (5%) | 606.9 | 641.1 | (5%) | |||||||||||||||||||||||||||||
| EBIT | 68.0 | 127.6 | (47%) | 104.3 | 194.1 | (46%) | |||||||||||||||||||||||||||||
| Adjusted EBIT | 125.3 | 127.6 | (2%) | 189.0 | 194.1 | (3%) | |||||||||||||||||||||||||||||
| EBIT Margin (%) | 17.2 | 30.3 | (13.1 pts) | 17.2 | 30.3 | (13.1 pts) | |||||||||||||||||||||||||||||
| Adjusted EBIT Margin (%) | 31.1 | 30.3 | 0.8 pts | 31.1 | 30.3 | 0.8 pts | |||||||||||||||||||||||||||||
| Adjusted EBITDA | 139.7 | 140.1 | —% | 210.8 | 213.1 | (1%) | |||||||||||||||||||||||||||||
| Adjusted EBITDA Margin (%) | 34.7 | 33.2 | 1.5 pts | 34.7 | 33.2 | 1.5 pts | |||||||||||||||||||||||||||||
| Europe Building Products | (US$ millions) | (€ millions) | |||||||||||||||||||||||||||||||||
| Net Sales | 359.8 | 353.9 | 2% | 332.9 | 326.5 | 2% | |||||||||||||||||||||||||||||
| EBIT | 24.7 | 31.9 | (23%) | 22.8 | 29.4 | (22%) | |||||||||||||||||||||||||||||
| EBIT Margin (%) | 6.8 | 9.0 | (2.2 pts) | 6.8 | 9.0 | (2.2 pts) | |||||||||||||||||||||||||||||
| EBITDA | 48.6 | 53.4 | (9%) | 44.9 | 49.2 | (9%) | |||||||||||||||||||||||||||||
| EBITDA Margin (%) | 13.5 | 15.1 | (1.6 pts) | 13.5 | 15.1 | (1.6 pts) | |||||||||||||||||||||||||||||
Earnings Release: James Hardie - Third Quarter Ended December 31, 2024 | 6 | |||||||
Earnings Release February 19, 2025 | | ||||
Further Information | ||
Readers are referred to the Company’s Condensed Consolidated Financial Statements and Management’s Analysis of Results for the third quarter ended December 31, 2024 for additional information regarding the Company’s results.
All comparisons made are vs. the comparable period in the prior fiscal year and amounts presented are in US dollars, unless otherwise noted.
Conference Call Details | ||
James Hardie will hold a conference call to discuss results and outlook Wednesday, February 19, 2025 at 9:00am AEDT (Tuesday, February 18, 2025 at 5:00pm EST). Participants may register for a live webcast and access a replay following the event of the event on the Investor Relations section of the Company’s website (ir.jameshardie.com).
About James Hardie | ||
James Hardie Industries plc is the world’s #1 producer and marketer of high-performance fiber cement and fiber gypsum building solutions. We market our fiber cement products and systems under the Hardie™ brand, such as Hardie® Plank, Hardie® Panel, Hardie® Trim, Hardie® Backer, Hardie® Artisan Siding, Hardie™ Architectural Collection, and other brand names such as Cemboard®, Prevail®, Scyon®, Linea® and Hardie™ Oblique™ cladding. We are also a market leader in the European premium timber frame and dry lining business, especially in Germany, Switzerland and Denmark. We market our fiber gypsum and cement-bonded boards under the fermacell® brand and our fire-protection boards under the AESTUVER® brand.
James Hardie Industries plc is a limited liability company incorporated in Ireland with its registered office at 1st Floor, Block A, One Park Place, Upper Hatch Street, Dublin 2, D02 FD79, Ireland.
Investor and Media Contact | ||
Joe Ahlersmeyer, CFA
Vice President, Investor Relations
+1 773-970-1213
investors@jameshardie.com
Earnings Release: James Hardie - Third Quarter Ended December 31, 2024 | 7 | |||||||
Earnings Release February 19, 2025 | | ||||
| Cautionary Note and Use of Non-GAAP Measures | ||
This Earnings Release includes financial measures that are not considered a measure of financial performance under generally accepted accounting principles in the United States (GAAP), such as Adjusted Net Income, Adjusted EBIT, Adjusted EBITDA and Adjusted Diluted EPS. These non-GAAP financial measures should not be considered to be more meaningful than the equivalent GAAP measure. Management has included such measures to provide investors with an alternative method for assessing its operating results in a manner that is focused on the performance of its ongoing operations and excludes the impact of certain legacy items, such as asbestos adjustments. Additionally, management uses such non-GAAP financial measures for the same purposes. However, these non-GAAP financial measures are not prepared in accordance with GAAP, may not be reported by all of the Company’s competitors and may not be directly comparable to similarly titled measures of the Company’s competitors due to potential differences in the exact method of calculation. The Company is unable to forecast the comparable US GAAP financial measure for future periods due to, amongst other factors, uncertainty regarding the impact of actuarial estimates on asbestos-related assets and liabilities in future periods. For additional information regarding the non-GAAP financial measures presented in this Earnings Release, including a reconciliation of each non-GAAP financial measure to the equivalent GAAP measure, see the section titled “Non-GAAP Financial Measures” included in the Company’s Earnings Presentation for the third quarter ended December 31, 2024.
In addition, this Earnings Release includes financial measures and descriptions that are considered to not be in accordance with GAAP, but which are consistent with financial measures reported by Australian companies, such as EBIT and EBIT margin. The Company prepares its condensed consolidated financial statements under GAAP. The equivalent GAAP financial statement line item description for EBIT used in its condensed consolidated financial statements is Operating income (loss). The Company provides investors with definitions and a cross- reference from the non-GAAP financial measure used in this Earnings Release to the equivalent GAAP financial measure used in the Company's condensed consolidated financial statements. See the section titled “Non-GAAP Financial Measures” included in the Company’s Earnings Presentation for the third quarter ended December 31, 2024.
This Earnings Release contains forward-looking statements and information that are necessarily subject to risks, uncertainties and assumptions. Many factors could cause the actual results, performance or achievements of James Hardie to be materially different from those expressed or implied in this release, including, among others, the risks and uncertainties set forth in Section 3 “Risk Factors” in James Hardie’s Annual Report on Form 20-F for the fiscal year ended March 31, 2024; changes in general economic, political, governmental and business conditions globally and in the countries in which James Hardie does business; changes in interest rates; changes in inflation rates; changes in exchange rates; the level of construction generally; changes in cement demand and prices; changes in raw material and energy prices; changes in business strategy and various other factors. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein. James Hardie assumes no obligation to update or correct the information contained in this Earnings Release except as required by law.
This earnings release has been authorized by the James Hardie Board of Directors.
Earnings Release: James Hardie - Third Quarter Ended December 31, 2024 | 8 | |||||||
| Fiscal Year 2025 Three and Nine Months Ended 31 December 2024 |  | ||||
Exhibit 99.3
| Management’s Analysis of Results | ||
This Management’s Analysis of Results forms part of a package of information about James Hardie Industries plc’s results. It should be read in conjunction with the other parts of this package, including the Earnings Release, the Management Presentation and the Condensed Consolidated Financial Statements. Except as otherwise indicated in this Management’s Analysis of Results, James Hardie Industries plc is referred to as “JHI plc.” JHI plc, together with its direct and indirect wholly-owned subsidiaries, are collectively referred to as “James Hardie,” the “Company,” “we,” “our,” or “us.” Definitions for certain capitalized terms used in this Management’s Analysis of Results can be found in the section titled “Non-GAAP Financial Measures.”
This Management’s Analysis of Results includes financial measures that are not considered a measure of financial performance under generally accepted accounting principles in the United States (“GAAP”). These non-GAAP financial measures should not be considered to be more meaningful than the equivalent GAAP measures. Management has included such measures to provide investors with an alternative method for assessing its financial condition and operating results in a manner that is focused on the performance of its ongoing operations. These measures exclude the impact of certain legacy items, such as asbestos adjustments, or significant non-recurring items, such as asset impairments, restructuring expenses, as well as adjustments to tax expense. In addition, management provides an adjusted effective tax rate, which excludes the tax impact of the special pre-tax items (items listed above) and special tax items. Management believes that this non-GAAP tax measure provides an ongoing effective rate which investors may find useful for historical comparisons and for forecasting and is an alternative method of assessing the economic impact of taxes on the Company, as it more closely approximates payments to taxing authorities. Management uses such non-GAAP financial measures for the same purposes. These non-GAAP measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. These non-GAAP financial measures are not prepared in accordance with GAAP, may not be reported by all of the Company’s competitors and may not be directly comparable to similarly titled measures of the Company’s competitors due to potential differences in the exact method of calculation. For additional information regarding the non-GAAP financial measures presented in this Management’s Analysis of Results, including a reconciliation of each non-GAAP financial measure to the equivalent GAAP measure, see the section titled “Non-GAAP Financial Measures.” In addition, this Management’s Analysis of Results includes financial measures and descriptions that are considered to not be in accordance with GAAP, but which are consistent with financial measures reported by Australian companies. Since James Hardie prepares its condensed consolidated financial statements in accordance with GAAP, the Company provides investors with definitions and a cross-reference from the non-GAAP financial measure used in this Management’s Analysis of Results to the equivalent GAAP financial measure used in the Company’s Condensed Consolidated Financial Statements. See the section titled “Non-GAAP Financial Measures.”
These documents, along with an audio webcast of the Management Presentation on 19 February 2025, are available from the Investor Relations area of our website at https://ir.jameshardie.com.au/financial-information/financial-results.
Investor and Media Contact
Joe Ahlersmeyer, CFA
Vice President, Investor Relations
Telephone: | +1 773-970-1213 | |||||||
Email: | investors@jameshardie.com | |||||||
Management's Analysis of Results: James Hardie - 3rd Quarter Fiscal Year 2025 | 1 | |||||||
| CONSOLIDATED RESULTS | | ||||
| Overview | ||
James Hardie Industries plc is a world leader in the manufacturing of fiber cement building solutions, and a market leader in fiber gypsum and cement-bonded boards in Europe. Our fiber cement building materials include a wide-range of products for both external and internal use across a broad range of applications. We have four reportable segments: North America Fiber Cement, Asia Pacific Fiber Cement, Europe Building Products and Research and Development.
| 3rd Quarter Financial Highlights | ||
| US$ Millions (except per share data) | Three Months Ended 31 December | ||||||||||||||||||||||||||||||||||||||||
| FY25 | FY24 | Change | |||||||||||||||||||||||||||||||||||||||
| Net sales | $ | 953.3 | $ | 978.3 | (3%) | ||||||||||||||||||||||||||||||||||||
| Gross margin (%) | 38.0 | 41.0 | (3.0 pts) | ||||||||||||||||||||||||||||||||||||||
| EBIT | 206.1 | 226.1 | (9%) | ||||||||||||||||||||||||||||||||||||||
| EBIT margin (%) | 21.6 | 23.1 | (1.5 pts) | ||||||||||||||||||||||||||||||||||||||
Adjusted EBIT1 | 207.0 | 234.1 | (12%) | ||||||||||||||||||||||||||||||||||||||
Adjusted EBIT margin (%)1 | 21.7 | 23.9 | (2.2 pts) | ||||||||||||||||||||||||||||||||||||||
| Net income | 141.7 | 145.1 | (2%) | ||||||||||||||||||||||||||||||||||||||
Adjusted Net income1 | 153.6 | 179.9 | (15%) | ||||||||||||||||||||||||||||||||||||||
| Diluted earnings per share | $ | 0.33 | $ | 0.33 | —% | ||||||||||||||||||||||||||||||||||||
Adjusted diluted earnings per share1 | $ | 0.36 | $ | 0.41 | (13%) | ||||||||||||||||||||||||||||||||||||
1 See section titled “Non-GAAP Financial Measures" for a reconciliation to the equivalent GAAP measure | |||||||||||||||||||||||||||||||||||||||||
•Net sales decreased 3% due to lower volumes in North America and Asia Pacific, partially offset by a higher average net sales price in all three regions.
•Gross margin decreased 3.0 percentage points mainly driven by higher production and distribution costs in North America, partially offset by an improvement in the Asia Pacific margin.
•Adjusted EBIT margin decreased 2.2 percentage points to 21.7%, driven by lower gross margin, partially offset by lower SG&A expenses as a percentage of sales.
We delivered strong business and financial results in the third quarter, and our year-to-date performance shows that we have a strong handle on our business as we continue to scale the organization and invest to grow profitably. Our teams are focused on safely delivering the highest quality products, solutions and services to our customers, and we are executing on our strategy to outperform our end-markets. We are homeowner focused, customer and contractor driven, providing the entire value chain with world class products and services.
Management's Analysis of Results: James Hardie - 3rd Quarter Fiscal Year 2025 | 2 | |||||||
| OPERATING RESULTS | | ||||
| North America Fiber Cement Segment | ||
Operating results for the North America Fiber Cement segment were as follows:
| US$ Millions | Three and Nine Months Ended 31 December | |||||||||||||||||||||||||||||||||||||
| Q3 FY25 | Q3 FY24 | Change | 9 Months FY25 | 9 Months FY24 | Change | |||||||||||||||||||||||||||||||||
| Volume (mmsf) | 744.0 | 766.5 | (3%) | 2,212.9 | 2,287.5 | (3%) | ||||||||||||||||||||||||||||||||
| Average net sales price per unit (per msf) | US$960 | US$943 | 2% | US$962 | US$937 | 3% | ||||||||||||||||||||||||||||||||
| Fiber cement net sales | 719.3 | 727.0 | (1%) | 2,144.4 | 2,156.2 | (1%) | ||||||||||||||||||||||||||||||||
| Gross profit | (10%) | (5%) | ||||||||||||||||||||||||||||||||||||
| Gross margin (%) | (3.8 pts) | (1.7 pts) | ||||||||||||||||||||||||||||||||||||
| EBIT | 209.3 | 237.8 | (12%) | 638.5 | 688.1 | (7%) | ||||||||||||||||||||||||||||||||
| EBIT margin (%) | 29.1 | 32.7 | (3.6 pts) | 29.8 | 31.9 | (2.1 pts) | ||||||||||||||||||||||||||||||||
Q3 FY25 vs Q3 FY24
Net sales decreased 1% driven by market weakness as volumes declined 3%, partially offset by a higher average net sales price resulting from our January 2024 price increase.
Gross margin decreased as a result of the following components:
| Higher average net sales price | 1.1 | pts | |||
| Higher production and distribution costs | (4.9 | pts) | |||
| Total percentage point change in gross margin | (3.8 | pts) | |||
Higher production and distribution costs were attributable to higher pulp and cement costs as well as unfavorable production cost absorption. Additionally, the region incurred startup costs of US$4.7 million at our Prattville facility in the current quarter compared to US$0.4 million at our Prattville facility and US$1.9 million at our Westfield facility in the prior corresponding period.
SG&A expenses decreased 3% primarily driven by lower marketing and employee costs. As a percentage of sales, SG&A expenses decreased 0.2 percentage points.
EBIT margin decreased 3.6 percentage points to 29.1%, primarily driven by lower gross margin.
Management's Analysis of Results: James Hardie - 3rd Quarter Fiscal Year 2025 | 3 | |||||||
| OPERATING RESULTS | | ||||
Nine Months FY25 vs Nine Months FY24
Net sales decreased 1%, driven by lower volumes of 3% primarily due to market weakness, offset by a higher average net sales price resulting from our January 2024 price increase.
Gross margin decreased as a result of the following components:
| Higher average net sales price | 1.6 | pts | |||
| Higher production and distribution costs | (3.3 | pts) | |||
| Total percentage point change in gross margin | (1.7 | pts) | |||
Higher production and distribution costs resulted from higher pulp and cement costs, coupled with unfavorable production cost absorption, partially offset by improved plant performance. Additionally, the region incurred startup costs of US$12.1 million at our Prattville and Westfield facilities compared to US$2.7 million in the prior year.
SG&A expenses increased 3% primarily driven by higher employee costs, as well as project costs related to our business transformation initiatives. These increases were partially offset by lower marketing spend. As a percentage of sales, SG&A expenses increased 0.3 percentage points.
EBIT margin decreased 2.1 percentage points to 29.8%, driven by lower gross margin and higher SG&A expenses.
| Asia Pacific Fiber Cement Segment | ||
The Asia Pacific Fiber Cement segment is comprised of the following regions: (i) Australia; (ii) New Zealand; and (iii) the Philippines which ceased manufacturing operations in August 2024.
Operating results for the Asia Pacific Fiber Cement segment in US dollars were as follows:
| US$ Millions | Three and Nine Months Ended 31 December | |||||||||||||||||||||||||||||||||||||
| Q3 FY25 | Q3 FY24 | Change | 9 Months FY25 | 9 Months FY24 | Change | |||||||||||||||||||||||||||||||||
| Volume (mmsf) | 95.8 | 133.1 | (28%) | 350.1 | 414.0 | (15%) | ||||||||||||||||||||||||||||||||
| Average net sales price per unit (per msf) | US$1,086 | US$898 | 21% | US$1,020 | US$908 | 12% | ||||||||||||||||||||||||||||||||
| Fiber cement net sales | 118.1 | 133.8 | (12%) | 401.8 | 421.3 | (5%) | ||||||||||||||||||||||||||||||||
| Gross profit | (7%) | (2%) | ||||||||||||||||||||||||||||||||||||
| Gross margin (%) | 2.1 pts | 1.3 pts | ||||||||||||||||||||||||||||||||||||
| Restructuring expenses | — | — | —% | 57.3 | — | 100% | ||||||||||||||||||||||||||||||||
| EBIT | 34.8 | 36.7 | (5%) | 68.0 | 127.6 | (47%) | ||||||||||||||||||||||||||||||||
| EBIT margin (%) | 29.3 | 27.5 | 1.8 pts | 17.2 | 30.3 | (13.1 pts) | ||||||||||||||||||||||||||||||||
| Adjusted EBIT | 34.8 | 36.7 | (5%) | 125.3 | 127.6 | (2%) | ||||||||||||||||||||||||||||||||
| Adjusted EBIT margin (%) | 29.3 | 27.5 | 1.8 pts | 31.1 | 30.3 | 0.8 pts | ||||||||||||||||||||||||||||||||
Management's Analysis of Results: James Hardie - 3rd Quarter Fiscal Year 2025 | 4 | |||||||
| OPERATING RESULTS | | ||||
Operating results for the Asia Pacific Fiber Cement segment in Australian dollars were as follows:
| A$ Millions | Three and Nine Months Ended 31 December | |||||||||||||||||||||||||||||||||||||
| Q3 FY25 | Q3 FY24 | Change | 9 Months FY25 | 9 Months FY24 | Change | |||||||||||||||||||||||||||||||||
| Volume (mmsf) | 95.8 | 133.1 | (28%) | 350.1 | 414.0 | (15%) | ||||||||||||||||||||||||||||||||
| Average net sales price per unit (per msf) | A$1,658 | A$1,384 | 20% | A$1,541 | A$1,381 | 12% | ||||||||||||||||||||||||||||||||
| Fiber cement net sales | 180.1 | 206.3 | (13%) | 606.9 | 641.1 | (5%) | ||||||||||||||||||||||||||||||||
| Gross profit | (8%) | (2%) | ||||||||||||||||||||||||||||||||||||
| Gross margin (%) | 2.1 pts | 1.3 pts | ||||||||||||||||||||||||||||||||||||
| Restructuring expenses | — | — | —% | 84.7 | — | 100% | ||||||||||||||||||||||||||||||||
| EBIT | 52.8 | 56.7 | (7%) | 104.3 | 194.1 | (46%) | ||||||||||||||||||||||||||||||||
| EBIT margin (%) | 29.3 | 27.5 | 1.8 pts | 17.2 | 30.3 | (13.1 pts) | ||||||||||||||||||||||||||||||||
| Adjusted EBIT | 52.8 | 56.7 | (7%) | 189.0 | 194.1 | (3%) | ||||||||||||||||||||||||||||||||
| Adjusted EBIT margin (%) | 29.3 | 27.5 | 1.8 pts | 31.1 | 30.3 | 0.8 pts | ||||||||||||||||||||||||||||||||
Q3 FY25 vs Q3 FY24 (A$)
Net sales decreased 13%, driven by lower volumes of 28%, partially offset by a higher average net sales price of 20%. Lower volumes and higher average net sales price were primarily attributable to completing the sale of remaining inventory in the Philippines. Excluding the Philippines, net sales and volumes were relatively flat.
Gross margin increased as a result of the following components:
| Higher average net sales price | 9.0 | pts | |||
| Higher production and distribution costs | (6.9 | pts) | |||
| Total percentage point change in gross margin | 2.1 | pts | |||
Higher production and distribution costs resulted primarily from higher energy costs and geographic mix, partially offset by favorable plant performance.
SG&A expenses decreased 11% primarily due to lower costs in the Philippines. As a percentage of sales, SG&A expenses increased 0.2 percentage points.
Higher EBIT margin of 1.8 percentage points was primarily driven by higher gross margin.
Management's Analysis of Results: James Hardie - 3rd Quarter Fiscal Year 2025 | 5 | |||||||
| OPERATING RESULTS | | ||||
Nine Months FY25 vs Nine Months FY24 (A$)
Net sales decreased 5%, driven by lower volumes of 15%, partially offset by a higher average net sales price of 12%. The decline in volumes and higher average net sales price were primarily attributable to our decision to shut down manufacturing and wind-down commercial operations in the Philippines. Favorable average net sales price also benefited from the March 2024 price increase in Australia.
Gross margin increased as a result of the following components:
| Higher average net sales price | 5.5 | pts | |||
| Higher production and distribution costs | (4.2 | pts) | |||
| Total percentage point change in gross margin | 1.3 | pts | |||
Higher production and distribution costs resulted primarily from geographic mix combined with higher energy and pulp costs.
As a percentage of sales SG&A expenses increased 0.5 percentage points.
Restructuring expenses of A$84.7 million primarily includes equipment write off and disposal costs of A$46.0 million, as well as contract termination costs, accounts receivable reserves and other exit costs of A$26.5 million. Additionally, the charge includes the reclassification of foreign currency translation adjustments out of accumulated other comprehensive income of A$12.2 million.
Lower EBIT margin resulted primarily from restructuring expenses incurred in the second quarter, partially offset by higher gross margin.
| Europe Building Products Segment | ||
The Europe Building Products segment is comprised of: (i) Europe Fiber Cement; and (ii) Europe Fiber Gypsum.
Operating results for the Europe Building Products segment in US dollars were as follows:
| US$ Millions | Three and Nine Months Ended 31 December | |||||||||||||||||||||||||||||||||||||
| Q3 FY25 | Q3 FY24 | Change | 9 Months FY25 | 9 Months FY24 | Change | |||||||||||||||||||||||||||||||||
| Volume (mmsf) | 183.1 | 179.7 | 2% | 555.9 | 541.7 | 3% | ||||||||||||||||||||||||||||||||
| Average net sales price per unit (per msf) | US$537 | US$520 | 3% | US$540 | US$523 | 3% | ||||||||||||||||||||||||||||||||
| Fiber cement net sales | 19.7 | 16.4 | 20% | 63.2 | 57.9 | 9% | ||||||||||||||||||||||||||||||||
Fiber gypsum net sales1 | 96.2 | 101.1 | (5%) | 296.6 | 296.0 | —% | ||||||||||||||||||||||||||||||||
| Net sales | 115.9 | 117.5 | (1%) | 359.8 | 353.9 | 2% | ||||||||||||||||||||||||||||||||
| Gross profit | (10%) | (1%) | ||||||||||||||||||||||||||||||||||||
| Gross margin (%) | (2.5 pts) | (1.0 pts) | ||||||||||||||||||||||||||||||||||||
| EBIT | 3.6 | 7.6 | (53%) | 24.7 | 31.9 | (23%) | ||||||||||||||||||||||||||||||||
| EBIT margin (%) | 3.1 | 6.5 | (3.4 pts) | 6.8 | 9.0 | (2.2 pts) | ||||||||||||||||||||||||||||||||
1Also includes cement bonded board net sales | ||||||||||||||||||||||||||||||||||||||
Management's Analysis of Results: James Hardie - 3rd Quarter Fiscal Year 2025 | 6 | |||||||
| OPERATING RESULTS | | ||||
Operating results for the Europe Building Products segment in Euros were as follows:
| € Millions | Three and Nine Months Ended 31 December | |||||||||||||||||||||||||||||||||||||
| Q3 FY25 | Q3 FY24 | Change | 9 Months FY25 | 9 Months FY24 | Change | |||||||||||||||||||||||||||||||||
| Volume (mmsf) | 183.1 | 179.7 | 2% | 555.9 | 541.7 | 3% | ||||||||||||||||||||||||||||||||
| Average net sales price per unit (per msf) | €504 | €484 | 4% | €499 | €483 | 3% | ||||||||||||||||||||||||||||||||
| Fiber cement net sales | 18.5 | 15.3 | 21% | 58.5 | 53.5 | 9% | ||||||||||||||||||||||||||||||||
Fiber gypsum net sales1 | 90.1 | 94.0 | (4%) | 274.4 | 273.0 | 1% | ||||||||||||||||||||||||||||||||
| Net sales | 108.6 | 109.3 | (1%) | 332.9 | 326.5 | 2% | ||||||||||||||||||||||||||||||||
| Gross profit | (10%) | (1%) | ||||||||||||||||||||||||||||||||||||
| Gross margin (%) | (2.5 pts) | (1.0 pts) | ||||||||||||||||||||||||||||||||||||
| EBIT | 3.4 | 7.1 | (52%) | 22.8 | 29.4 | (22%) | ||||||||||||||||||||||||||||||||
| EBIT margin (%) | 3.1 | 6.5 | (3.4 pts) | 6.8 | 9.0 | (2.2 pts) | ||||||||||||||||||||||||||||||||
1Also includes cement bonded board net sales | ||||||||||||||||||||||||||||||||||||||
Q3 FY25 vs Q3 FY24 (€)
Net sales includes a 4% increase in average net sales price driven by our June 2024 price increase and higher volumes for fiber cement and cement bonded boards. Additionally, the change in net sales was negatively impacted by the current year absence of the €4.2 million favorable customer rebate true-up recorded in the prior year.
Gross margin decreased as a result of the following components:
| Higher average net sales price | 2.6 | pts | |||
| Prior year favorable customer rebate true-up | (2.9 | pts) | |||
| Higher production and distribution costs | (2.2 | pts) | |||
| Total percentage point change in gross margin | (2.5 | pts) | |||
Higher production and distribution costs resulted primarily from higher gypsum and fiber cement product costs, partially offset by lower energy prices.
SG&A expenses increased 4% due to higher employee costs, primarily an increase in our high value product sales force, partially offset by lower marketing spend. As a percentage of sales, SG&A expenses increased 0.9 percentage points.
EBIT margin of 3.1% decreased 3.4 percentage points primarily driven by lower gross margin and higher SG&A expenses.
Management's Analysis of Results: James Hardie - 3rd Quarter Fiscal Year 2025 | 7 | |||||||
| OPERATING RESULTS | | ||||
Nine Months FY25 vs Nine Months FY24 (€)
Net sales increased 2% due to a 3% growth in both volumes and average net sales price, partially offset by the absence of the €7.5 million favorable customer rebate true-up recorded in the prior year. The average net sales price increase was driven by our June 2024 price increase.
Gross margin decreased as a result of the following components:
| Higher average net sales price | 2.0 | pts | |||
| Prior year favorable customer rebate true-up | (1.7 | pts) | |||
| Higher production and distribution costs | (1.3 | pts) | |||
| Total percentage point change in gross margin | (1.0 | pts) | |||
Higher production and distribution costs resulted from higher freight, paper and gypsum costs, partially offset by lower energy and labor costs.
SG&A expenses increased 9% due to higher employee costs, primarily an increase in our high value product sales force, partially offset by lower marketing costs. As a percentage of sales, SG&A expenses increased 1.4 percentage points.
EBIT margin of 6.8% decreased 2.2 percentage points primarily driven by lower gross margin and higher SG&A expenses.
Management's Analysis of Results: James Hardie - 3rd Quarter Fiscal Year 2025 | 8 | |||||||
| OPERATING RESULTS | | ||||
| General Corporate | ||
Results for General Corporate were as follows:
| US$ Millions | Three and Nine Months Ended 31 December | |||||||||||||||||||||||||||||||||||||
| Q3 FY25 | Q3 FY24 | Change % | 9 Months FY25 | 9 Months FY24 | Change % | |||||||||||||||||||||||||||||||||
| General Corporate costs | $ | 31.8 | $ | 48.0 | (34) | $ | 108.8 | $ | 138.8 | (22) | ||||||||||||||||||||||||||||
| Less: | ||||||||||||||||||||||||||||||||||||||
| Restructuring expenses | — | — | — | — | (20.1) | (100) | ||||||||||||||||||||||||||||||||
| Asbestos related expenses and adjustments | (0.9) | (8.0) | (89) | (2.9) | (4.8) | (40) | ||||||||||||||||||||||||||||||||
| Adjusted General Corporate costs | $ | 30.9 | $ | 40.0 | (23) | $ | 105.9 | $ | 113.9 | (7) | ||||||||||||||||||||||||||||
General Corporate costs for the three month period decreased US$16.2 million due to lower stock-based compensation expense of US$9.4 million and lower Asbestos related expenses and adjustments of US$7.1 million, which resulted from the impact of foreign currency movements on the asbestos liability being accounted for as foreign currency translation adjustments in accumulated other comprehensive income beginning 31 March 2024.
For the nine month period, General Corporate costs decreased US$30.0 million due to lower stock-based compensation expense of US$11.9 million, offset by higher employee and legal costs. In addition, the decline was also attributable to the current year absence of a prior year provision for a receivable and a US$20.1 million restructuring charge related to the strategic decision to cancel the Truganina greenfield project.
| Interest, net | ||
| US$ Millions | Three and Nine Months Ended 31 December | |||||||||||||||||||||||||||||||||||||
| Q3 FY25 | Q3 FY24 | Change % | 9 Months FY25 | 9 Months FY24 | Change % | |||||||||||||||||||||||||||||||||
| Interest expense | $ | 15.1 | $ | 14.7 | 3 | $ | 46.5 | $ | 40.2 | 16 | ||||||||||||||||||||||||||||
| Capitalized interest | (3.9) | (5.3) | (26) | (16.7) | (13.3) | 26 | ||||||||||||||||||||||||||||||||
| Interest income | (4.7) | (4.1) | 15 | (13.9) | (6.8) | 104 | ||||||||||||||||||||||||||||||||
| AICF interest income | (2.7) | (2.2) | 23 | (8.5) | (6.7) | 27 | ||||||||||||||||||||||||||||||||
| Interest, net | $ | 3.8 | $ | 3.1 | 23 | $ | 7.4 | $ | 13.4 | (45) | ||||||||||||||||||||||||||||
For the nine month period, interest expense increased due to a higher average outstanding balance as a result of the term loan agreement entered into October 2023.
Capitalized interest for the three month period decreased due to Sheet Machine 3 at our Prattville, Alabama plant being placed into service. For the nine month period, capitalized interest increased due to a higher amount of accumulated capital expansion project spend at our Prattville, Alabama and Orejo, Spain plants.
Higher interest income for both the three and nine month periods were driven by higher cash balances.
Management's Analysis of Results: James Hardie - 3rd Quarter Fiscal Year 2025 | 9 | |||||||
| OPERATING RESULTS | | ||||
| Income Tax | ||
| US$ Millions | Three and Nine Months Ended 31 December | |||||||||||||||||||||||||||||||||||||
| Q3 FY25 | Q3 FY24 | Change | 9 Months FY25 | 9 Months FY24 | Change | |||||||||||||||||||||||||||||||||
| Income tax expense | $ | 60.6 | $ | 78.5 | (23%) | $ | 206.2 | $ | 218.2 | (5%) | ||||||||||||||||||||||||||||
| Effective tax rate (%) | 30.0 | 35.1 | (5.1 pts) | 35.2 | 32.4 | 2.8 pts | ||||||||||||||||||||||||||||||||
Adjusted income tax expense1 | $ | 46.9 | $ | 49.5 | (5%) | $ | 150.1 | $ | 157.7 | (5%) | ||||||||||||||||||||||||||||
Adjusted effective tax rate1 (%) | 23.4 | 21.6 | 1.8 pts | 23.5 | 22.8 | 0.7 pts | ||||||||||||||||||||||||||||||||
1Includes tax adjustments related to the amortization benefit of certain US intangible assets, asbestos, and other tax adjustments | ||||||||||||||||||||||||||||||||||||||
The effective tax rate for the three month period decreased 5.1 percentage points, primarily due to tax adjustments and asbestos expense, partially offset by geographic earnings mix. For the nine month period, the effective tax rate increased 2.8 percentage points, primarily due to the Philippines restructuring expenses recorded without an associated tax benefit in the current period and geographic earnings mix.
The adjusted effective tax rate for the three and nine month periods increased 1.8 percentage points and 0.7 percentage points, respectively, primarily due to geographic earnings mix.
| Adjusted Net Income | ||
| US$ Millions | Three and Nine Months Ended 31 December | |||||||||||||||||||||||||||||||||||||
| Q3 FY25 | Q3 FY24 | Change % | 9 Months FY25 | 9 Months FY24 | Change % | |||||||||||||||||||||||||||||||||
| North America Fiber Cement | $ | 209.3 | $ | 237.8 | (12) | $ | 638.5 | $ | 688.1 | (7) | ||||||||||||||||||||||||||||
Asia Pacific Fiber Cement1 | 34.8 | 36.7 | (5) | 125.3 | 127.6 | (2) | ||||||||||||||||||||||||||||||||
| Europe Building Products | 3.6 | 7.6 | (53) | 24.7 | 31.9 | (23) | ||||||||||||||||||||||||||||||||
| Research and Development | (9.8) | (8.0) | (23) | (28.6) | (25.4) | (13) | ||||||||||||||||||||||||||||||||
General Corporate2 | (30.9) | (40.0) | 23 | (105.9) | (113.9) | 7 | ||||||||||||||||||||||||||||||||
| Adjusted EBIT | 207.0 | 234.1 | (12) | 654.0 | 708.3 | (8) | ||||||||||||||||||||||||||||||||
Adjusted interest, net3 | 6.5 | 5.3 | 23 | 15.9 | 20.1 | (21) | ||||||||||||||||||||||||||||||||
| Other income, net | — | (0.6) | (100) | (0.2) | (2.8) | (93) | ||||||||||||||||||||||||||||||||
Adjusted income tax expense4 | 46.9 | 49.5 | (5) | 150.1 | 157.7 | (5) | ||||||||||||||||||||||||||||||||
| Adjusted net income | $ | 153.6 | $ | 179.9 | (15) | $ | 488.2 | $ | 533.3 | (8) | ||||||||||||||||||||||||||||
1 Excludes restructuring expenses related to our decision to exit the Philippines 2 Excludes Asbestos-related expenses and adjustments and the Restructuring expense on the Truganina greenfield site in FY24 3 Excludes AICF interest income 4 Includes tax adjustments related to the amortization benefit of certain US intangible assets, asbestos and other tax adjustments | ||||||||||||||||||||||||||||||||||||||
ll
Management's Analysis of Results: James Hardie - 3rd Quarter Fiscal Year 2025 | 10 | |||||||
| OTHER INFORMATION | | ||||
| Cash Flow | ||
| US$ Millions | Nine Months Ended 31 December | |||||||||||||||||||||||||
| FY25 | FY24 | Change | Change % | |||||||||||||||||||||||
| Net cash provided by operating activities | $ | 657.4 | $ | 749.5 | $ | (92.1) | (12) | |||||||||||||||||||
| Net cash used in investing activities | 353.1 | 350.0 | 3.1 | 1 | ||||||||||||||||||||||
| Net cash used in financing activities | 163.7 | 132.9 | 30.8 | 23 | ||||||||||||||||||||||
Significant sources and uses of cash during fiscal year 2025 include:
•Cash provided by operating activities:
◦Net income, adjusted for non-cash items, of US$733.6 million
◦Working capital decreased, increasing operating cashflow by US$50.3 million, primarily due to a reduction in accounts receivable in North America and Asia Pacific, partially offset by higher inventory and lower accounts payable
◦Asbestos claims paid of US$87.7 million
•Cash used in investing activities:
◦Capital expenditures of US$333.0 million, including global capacity expansion project spend of US$134.3 million related primarily to our Prattville, Alabama and Orejo, Spain brownfield expansion projects
•Cash used in financing activities:
◦Repurchase of shares of US$149.9 million
| Capacity Expansion | ||
Our capacity expansion program is guided by our expectation for sustainable long term profitable share gain. We continue to monitor macro-economic conditions and the impacts on the housing markets we do business in to ensure the program is aligned with our global strategy.
For fiscal year 2025, we estimate total Capital Expenditures will be approximately US$420 million. During the first nine months, we commenced production at our Westfield, Massachusetts ColorPlus® facility in April and on Sheet Machine 3 at our Prattville, Alabama facility in September.
In addition, during the fourth quarter of fiscal year 2025, we plan to:
•Continue construction of Sheet Machine 4 at Prattville, Alabama
•Continue construction of ColorPlus® finishing capacity at Prattville, Alabama
•Continue brownfield expansion of our fiber gypsum facility in Orejo, Spain
•Continue planning of our brownfield facility at Cleburne, Texas
•Continue planning of our greenfield facility at Crystal City, Missouri
Management's Analysis of Results: James Hardie - 3rd Quarter Fiscal Year 2025 | 11 | |||||||
| OTHER INFORMATION | | ||||
| Liquidity | ||
At 31 December 2024 we had US$539.1 million in cash and cash equivalents, an increase of US$174.1 million from 31 March 2024. We also have US$594.1 million of available borrowing capacity under our revolving credit facility at 31 December 2024.
During fiscal year 2025, we will contribute A$149.6 million to AICF, excluding interest, in quarterly installments; Total payments of A$112.2 million have been made through 2 January 2025.
Based on our existing cash balances, together with anticipated operating cash flows and available credit facilities, we anticipate we will have sufficient funds to invest in our organic growth, including capital expenditures, while meeting our planned working capital and other contractual commitments for the next twelve months.
| Capital Allocation | ||
Our Capital Allocation framework prioritizes the use of free cash flow as follows:
•Invest in organic growth
•Maintain a flexible balance sheet
•Deploy excess capital to shareholders
•Evaluate potential inorganic opportunities
On 13 November 2024, our board of directors approved and authorized a new share buyback plan, for an aggregate amount up to US$300 million through 31 October 2025.
Management's Analysis of Results: James Hardie - 3rd Quarter Fiscal Year 2025 | 12 | |||||||
| NON-GAAP FINANCIAL TERMS | | ||||
| Financial Measures - GAAP equivalents | ||
This document contains the financial statement line item EBIT, which is considered to be non-GAAP, but is consistent with the term used by Australian companies. Because we prepare our condensed consolidated financial statements under GAAP, the equivalent GAAP financial statement line item description used in our condensed consolidated financial statements is Operating income (loss).
EBIT – Earnings (Loss) before interest and tax.
EBIT margin – EBIT margin is defined as EBIT as a percentage of net sales.
| Non GAAP Financial Terms | ||
This Management’s Analysis of Results includes certain financial information to supplement the Company’s condensed consolidated financial statements which are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). These financial measures are designed to provide investors with an alternative method for assessing our performance from on-going operations, capital efficiency and profit generation. Management uses these financial measures for the same purposes. These financial measures include:
| • | Adjusted EBIT | • | Adjusted net income | ||||||||
| • | Adjusted EBIT margin | • | Adjusted diluted earnings per share | ||||||||
| • | Asia Pacific Fiber Cement Segment Adjusted EBIT | • | Adjusted income before income taxes | ||||||||
| • | Asia Pacific Fiber Cement Segment Adjusted EBIT margin | • | Adjusted income tax expense | ||||||||
| • | Adjusted General Corporate costs | • | Adjusted effective tax rate | ||||||||
| • | Adjusted interest, net | ||||||||||
These financial measures are or may be non-GAAP financial measures as defined in the rules of the U.S. Securities and Exchange Commission and may exclude or include amounts that are included or excluded, as applicable, in the calculation of the most directly comparable financial measures calculated in accordance with GAAP. These financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with the Company’s condensed consolidated financial statements prepared in accordance with GAAP. In evaluating these financial measures, investors should note that other companies reporting or describing similarly titled financial measures may calculate them differently and investors should exercise caution in comparing the Company’s financial measures to similar titled measures by other companies.
| Definitions | ||
AFFA – Amended and Restated Final Funding Agreement
AICF – Asbestos Injuries Compensation Fund Ltd
Average net sales price per msf ("ASP") – Total net sales of fiber cement and fiber gypsum products, excluding accessory sales, divided by the total volume of products sold
NM – Not meaningful
Sales Volume
mmsf – million standard feet, where a standard foot is defined as a square foot of 5/16” thickness | |||||
msf – thousand standard feet, where a standard foot is defined as a square foot of 5/16” thickness | |||||
Working Capital – The working capital calculation used in our cash provided by operating analysis includes the change in: (1) Accounts and other receivables, net; (2) Inventories; and (3) Accounts payable and accrued liabilities
Management's Analysis of Results: James Hardie - 3rd Quarter Fiscal Year 2025 | 13 | |||||||
| NON-GAAP FINANCIAL MEASURES | | ||||
| Financial Measures - GAAP equivalents | ||
Adjusted EBIT
| US$ Millions | Three and Nine Months Ended 31 December | |||||||||||||||||||||||||
| Q3 FY25 | Q3 FY24 | 9 Months FY25 | 9 Months FY24 | |||||||||||||||||||||||
| EBIT | $ | 206.1 | $ | 226.1 | $ | 593.8 | $ | 683.4 | ||||||||||||||||||
| Restructuring expenses | — | — | 57.3 | 20.1 | ||||||||||||||||||||||
| Asbestos related expenses and adjustments | 0.9 | 8.0 | 2.9 | 4.8 | ||||||||||||||||||||||
| Adjusted EBIT | $ | 207.0 | $ | 234.1 | $ | 654.0 | $ | 708.3 | ||||||||||||||||||
| Net sales | 953.3 | 978.3 | 2,906.0 | 2,931.4 | ||||||||||||||||||||||
| Adjusted EBIT margin | 21.7% | 23.9% | 22.5% | 24.2% | ||||||||||||||||||||||
Asia Pacific Fiber Cement Segment Adjusted EBIT
| US$ Millions | Three and Nine Months Ended 31 December | |||||||||||||||||||||||||
| Q3 FY25 | Q3 FY24 | 9 Months FY25 | 9 Months FY24 | |||||||||||||||||||||||
| Asia Pacific Fiber Cement Segment EBIT | $ | 34.8 | $ | 36.7 | $ | 68.0 | $ | 127.6 | ||||||||||||||||||
| Restructuring expenses | — | — | 57.3 | — | ||||||||||||||||||||||
| Asia Pacific Fiber Cement Segment Adjusted EBIT | $ | 34.8 | $ | 36.7 | $ | 125.3 | $ | 127.6 | ||||||||||||||||||
| Asia Pacific Fiber Cement Segment Net sales | 118.1 | 133.8 | 401.8 | 421.3 | ||||||||||||||||||||||
| Asia Pacific Fiber Cement Segment Adjusted EBIT margin | 29.3% | 27.5% | 31.1% | 30.3% | ||||||||||||||||||||||
Adjusted General Corporate Costs
| US$ Millions | Three and Nine Months Ended 31 December | |||||||||||||||||||||||||
| Q3 FY25 | Q3 FY24 | 9 Months FY25 | 9 Months FY24 | |||||||||||||||||||||||
| General Corporate costs | $ | 31.8 | $ | 48.0 | $ | 108.8 | $ | 138.8 | ||||||||||||||||||
| Less: | ||||||||||||||||||||||||||
| Restructuring expenses | — | — | — | (20.1) | ||||||||||||||||||||||
| Asbestos related expenses and adjustments | (0.9) | (8.0) | (2.9) | (4.8) | ||||||||||||||||||||||
| Adjusted General Corporate costs | $ | 30.9 | $ | 40.0 | $ | 105.9 | $ | 113.9 | ||||||||||||||||||
Management's Analysis of Results: James Hardie - 3rd Quarter Fiscal Year 2025 | 14 | |||||||
| NON-GAAP FINANCIAL MEASURES | | ||||
Adjusted interest, net
| US$ Millions | Three and Nine Months Ended 31 December | |||||||||||||||||||||||||
| Q3 FY25 | Q3 FY24 | 9 Months FY25 | 9 Months FY24 | |||||||||||||||||||||||
| Interest, net | $ | 3.8 | $ | 3.1 | $ | 7.4 | $ | 13.4 | ||||||||||||||||||
| AICF interest income | (2.7) | (2.2) | (8.5) | (6.7) | ||||||||||||||||||||||
| Adjusted interest, net | $ | 6.5 | $ | 5.3 | $ | 15.9 | $ | 20.1 | ||||||||||||||||||
Adjusted net income
| Three and Nine Months Ended 31 December | ||||||||||||||||||||||||||
| Q3 FY25 | Q3 FY24 | 9 Months FY25 | 9 Months FY24 | |||||||||||||||||||||||
| Net income | $ | 141.7 | $ | 145.1 | $ | 380.4 | $ | 454.6 | ||||||||||||||||||
| Asbestos related expenses and adjustments | 0.9 | 8.0 | 2.9 | 4.8 | ||||||||||||||||||||||
| AICF interest income | (2.7) | (2.2) | (8.5) | (6.7) | ||||||||||||||||||||||
| Restructuring expenses | — | — | 57.3 | 20.1 | ||||||||||||||||||||||
Tax adjustments1 | 13.7 | 29.0 | 56.1 | 60.5 | ||||||||||||||||||||||
| Adjusted net income | $ | 153.6 | $ | 179.9 | $ | 488.2 | $ | 533.3 | ||||||||||||||||||
1Includes tax adjustments related to the amortization benefit of certain US intangible assets, asbestos, and other tax adjustments | ||||||||||||||||||||||||||
Adjusted diluted earnings per share
| Three and Nine Months Ended 31 December | ||||||||||||||||||||||||||
| Q3 FY25 | Q3 FY24 | 9 Months FY25 | 9 Months FY24 | |||||||||||||||||||||||
| Adjusted net income (US$ millions) | $ | 153.6 | $ | 179.9 | $ | 488.2 | $ | 533.3 | ||||||||||||||||||
Weighted average common shares outstanding - Diluted (millions) | 430.9 | 438.3 | 432.6 | 440.6 | ||||||||||||||||||||||
| Adjusted diluted earnings per share | $ | 0.36 | $ | 0.41 | $ | 1.13 | $ | 1.21 | ||||||||||||||||||
Management's Analysis of Results: James Hardie - 3rd Quarter Fiscal Year 2025 | 15 | |||||||
| NON-GAAP FINANCIAL MEASURES | | ||||
Adjusted effective tax rate
| US$ Millions | Three and Nine Months Ended 31 December | |||||||||||||||||||||||||
| Q3 FY25 | Q3 FY24 | 9 Months FY25 | 9 Months FY24 | |||||||||||||||||||||||
| Income before income taxes | $ | 202.3 | $ | 223.6 | $ | 586.6 | $ | 672.8 | ||||||||||||||||||
| Asbestos related expenses and adjustments | 0.9 | 8.0 | 2.9 | 4.8 | ||||||||||||||||||||||
| AICF interest income | (2.7) | (2.2) | (8.5) | (6.7) | ||||||||||||||||||||||
| Restructuring expenses | — | — | 57.3 | 20.1 | ||||||||||||||||||||||
| Adjusted income before income taxes | $ | 200.5 | $ | 229.4 | $ | 638.3 | $ | 691.0 | ||||||||||||||||||
| Income tax expense | 60.6 | 78.5 | 206.2 | 218.2 | ||||||||||||||||||||||
Tax adjustments1 | (13.7) | (29.0) | (56.1) | (60.5) | ||||||||||||||||||||||
| Adjusted income tax expense | $ | 46.9 | $ | 49.5 | $ | 150.1 | $ | 157.7 | ||||||||||||||||||
| Effective tax rate | 30.0% | 35.1% | 35.2% | 32.4% | ||||||||||||||||||||||
| Adjusted effective tax rate | 23.4% | 21.6% | 23.5% | 22.8% | ||||||||||||||||||||||
1Includes tax adjustments related to the amortization benefit of certain US intangible assets, asbestos, and other tax adjustments | ||||||||||||||||||||||||||
Management's Analysis of Results: James Hardie - 3rd Quarter Fiscal Year 2025 | 16 | |||||||
| FORWARD-LOOKING STATEMENTS | | ||||
This Management’s Analysis of Results contains forward-looking statements. James Hardie Industries plc (the “Company”) may from time to time make forward-looking statements in its periodic reports filed with or furnished to the Securities and Exchange Commission, on Forms 20-F and 6-K, in its annual reports to shareholders, in offering circulars, invitation memoranda and prospectuses, in media releases and other written materials and in oral statements made by the Company’s officers, directors or employees to analysts, institutional investors, existing and potential lenders, representatives of the media and others. Statements that are not historical facts are forward-looking statements and such forward-looking statements are statements made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995.
Examples of forward-looking statements include:
▪statements about the Company’s future performance;
▪projections of the Company’s results of operations or financial condition;
▪statements regarding the Company’s plans, objectives or goals, including those relating to strategies, initiatives, competition, acquisitions, dispositions and/or its products;
▪expectations concerning the costs associated with the suspension or closure of operations at any of the Company’s plants and future plans with respect to any such plants;
▪expectations concerning the costs associated with the significant capital expenditure projects at any of the Company’s plants and future plans with respect to any such projects;
▪expectations regarding the extension or renewal of the Company’s credit facilities including changes to terms, covenants or ratios;
▪expectations concerning dividend payments and share buy-backs;
▪statements concerning the Company’s corporate and tax domiciles and structures and potential changes to them, including potential tax charges;
▪statements regarding tax liabilities and related audits, reviews and proceedings;
▪statements regarding the possible consequences and/or potential outcome of legal proceedings brought against us and the potential liabilities, if any, associated with such proceedings;
▪expectations about the timing and amount of contributions to AICF, a special purpose fund for the compensation of proven Australian asbestos-related personal injury and death claims;
▪expectations concerning the adequacy of the Company’s warranty provisions and estimates for future warranty-related costs;
▪statements regarding the Company’s ability to manage legal and regulatory matters (including but not limited to product liability, environmental, intellectual property and competition law matters) and to resolve any such pending legal and regulatory matters within current estimates and in anticipation of certain third-party recoveries; and
▪statements about economic or housing market conditions in the regions in which we operate, including but not limited to, the levels of new home construction and home renovations, unemployment levels, changes in consumer income, changes or stability in housing values, the availability of mortgages and other financing, mortgage and other interest rates, housing affordability and supply, the levels of foreclosures and home resales, currency exchange rates, and builder and consumer confidence.
Words such as “believe,” “anticipate,” “plan,” “expect,” “intend,” “target,” “estimate,” “project,” “predict,” “forecast,” “guideline,” “aim,” “will,” “should,” “likely,” “continue,” “may,” “objective,” “outlook” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Readers are cautioned not to place undue reliance on these forward-looking statements and all such forward-looking statements are qualified in their entirety by reference to the following cautionary statements.
Forward-looking statements are based on the Company’s current expectations, estimates and assumptions and because forward-looking statements address future results, events and conditions, they, by their very nature, involve inherent risks and uncertainties, many of which are unforeseeable and beyond the Company’s control. Such known and unknown risks, uncertainties and other factors may cause actual results, performance or other achievements to differ materially from the anticipated results, performance or achievements expressed, projected or implied by these forward-looking statements. These factors, some of which are discussed under “Risk Factors” in Section 3 of our Form 20-F filed with the Securities and Exchange Commission on 20 May 2024, include, but are not limited to: all matters relating to or arising out of the prior manufacture of products that contained asbestos by current and former Company subsidiaries; required contributions to AICF, any shortfall in AICF funding and the effect of currency exchange rate movements on the amount recorded in the Company’s financial statements as an asbestos liability; compliance with and changes in tax laws and treatments; competition and product pricing in the markets in which the Company operates; the consequences of product failures or defects; exposure to environmental, asbestos, putative consumer class action or other legal proceedings; general economic and market conditions; the supply and cost of raw materials; possible increases in competition and the potential that competitors could copy the Company’s products; compliance with and changes in environmental and health and safety laws; risks of conducting business internationally; compliance with and changes in laws and regulations; currency exchange risks; dependence on customer preference and the concentration of the Company’s customer base; dependence on residential and commercial construction markets; the effect of adverse changes in climate or weather patterns; use of accounting estimates; and all other risks identified in the Company’s reports filed with Australian, Irish and US securities regulatory agencies and exchanges (as appropriate). The Company cautions you that the foregoing list of factors is not exhaustive and that other risks and uncertainties may cause actual results to differ materially from those referenced in the Company’s forward-looking statements. Forward-looking statements speak only as of the date they are made and are statements of the Company’s current expectations concerning future results, events and conditions. The Company assumes no obligation to update any forward-looking statements or information except as required by law.
Management's Analysis of Results: James Hardie - 3rd Quarter Fiscal Year 2025 | 17 | |||||||
Third Quarter FY25 Earnings Presentation TUESDAY, FEBRUARY 18th WEDNESDAY, FEBRUARY 19th DUBLINCHICAGO SYDNEY | | | Exhibit 99.4
2 Q3 FY25 Earnings Presentation Cautionary Note and Use of Non-GAAP Measures This Earnings Presentation contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. James Hardie Industries plc (the “Company”) may from time to time make forward-looking statements in its periodic reports filed with or furnished to the Securities and Exchange Commission on Forms 20-F and 6-K, in its annual reports to shareholders, in media releases and other written materials and in oral statements made by the Company’s officers, directors or employees to analysts, institutional investors, representatives of the media and others. Words such as “believe,” “anticipate,” “plan,” “expect,” “intend,” “target,” “estimate,” “project,” “predict,” “forecast,” “guideline,” “aim,” “will,” “should,” “likely,” “continue,” “may,” “objective,” “outlook” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. These forward-looking statements are based upon management's current expectations, estimates, assumptions, beliefs and general good faith evaluation of information available at the time the forward-looking statements were made concerning future events and conditions. Readers are cautioned not to place undue reliance on any forward-looking statements or rely upon them as a guarantee of future performance or results or as an accurate indication of the times at or by which any such performance or results will be achieved. Forward-looking statements are necessarily subject to risks, uncertainties and other factors, many of which are unforeseeable and beyond the Company’s control. Many factors could cause actual results, performance or achievements to be materially different from those expressed or implied in this Earnings Presentation, including, among others, the risks and uncertainties set forth in Section 3 “Risk Factors” in James Hardie’s Annual Report on Form 20-F for the year ended March 31, 2024, which include, but are not necessarily limited to risks such as changes in general economic, political, governmental and business conditions globally and in the countries in which the Company does business, including; changes in interest rates; changes in inflation rates; changes in exchange rates; the level of construction generally; changes in cement demand and prices; changes in raw material and energy prices; changes in business strategy and various other factors. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein. James Hardie assumes no obligation to update or correct the information contained in this Earnings Presentation except as required by law. This Earnings Presentation includes financial measures that are not considered a measure of financial performance under generally accepted accounting principles in the United States (GAAP). These financial measures are designed to provide investors with an alternative method for assessing our performance from on-going operations, capital efficiency and profit generation. Management uses these financial measures for the same purposes. These financial measures are or may be non-GAAP financial measures as defined in the rules of the U.S. Securities and Exchange Commission and may exclude or include amounts that are included or excluded, as applicable, in the calculation of the most directly comparable financial measures calculated in accordance with GAAP. These non-GAAP financial measures should not be considered to be more meaningful than the equivalent GAAP measure. Management has included such measures to provide investors with an alternative method for assessing its operating results in a manner that is focused on the performance of its ongoing operations and excludes the impact of certain legacy items, such as asbestos adjustments. Additionally, management uses such non-GAAP financial measures for the same purposes. However, these non-GAAP financial measures are not prepared in accordance with GAAP, may not be reported by all of the Company’s competitors and may not be directly comparable to similarly titled measures of the Company’s competitors due to potential differences in the exact method of calculation. For additional information regarding the non-GAAP financial measures presented in this Earnings Presentation, including a reconciliation of each non-GAAP financial measure to the equivalent GAAP measure, see slides titled “Non-GAAP Financial Measures” included in this Earnings Presentation. In addition, this Earnings Presentation includes financial measures and descriptions that are considered to not be in accordance with GAAP, but which are consistent with financial measures reported by Australian companies, such as EBIT and EBIT margin. Since the Company prepares its Condensed Consolidated Financial Statements in accordance with GAAP, the Company provides investors with definitions and a cross-reference from the non-GAAP financial measure used in this Earnings Presentation to the equivalent GAAP financial measure used in the Company’s Condensed Consolidated Financial Statements. See slides titled “Non-GAAP Financial Measures” included in this Earnings Presentation. All comparisons made are vs. the comparable period in the prior fiscal year and amounts presented are in US dollars, unless otherwise noted. Investor Contact Joe Ahlersmeyer, CFA Vice President, Investor Relations joe.ahlersmeyer@jameshardie.com
3 Q3 FY25 Earnings Presentation Agenda Business Update & Strategy Financial Review Guidance & Outlook Key Messages Aaron Erter Chief Executive Officer Rachel Wilson Chief Financial Officer Q&A
4 Q3 FY25 Earnings Presentation Key Messages Delivering on Our Commitments Managing Decisively Investing for Future Growth Executing Our Strategy Our Operational Focus On Track to Deliver FY25 Guidance Keeping Our Commitments Consistent Results Delivery ✓ 2.95bnsf+ North America Volume ✓ 29.3%+ North America EBIT Margin ✓ $635mm+ Total Adjusted Net Income Building A Strong Foundation For Growth in FY26 and Over the Long Term Delivering Value for Our Customers Reaffirming Our FY26 Growth Plans ✓ Sales Growth Across All Regions ✓ EBITDA Margin Expansion Across All Regions ✓ HOS Savings Offsetting Raw Material Headwinds
5 Q3 FY25 Earnings Presentation Segment Business Update Relentless Focus on Increasing Our Total Value Proposition Asia Pacific Fiber Cement Europe Building ProductsNorth America Fiber Cement ✓ Outperforming our end markets through our superior total value proposition and driving leading margins despite intensifying raw material headwinds. ✓ Aligning our capacity to demand and preparing our production network for market recovery and sustained growth from our material conversion opportunity. ✓ Investing across the value chain to better service our customers, grow and engage our contractor base and reaccelerate homeowner demand to capture the R&R opportunity. ✓ Growing share with large builders, solidifying clear preference for our siding products, increasing trim attachment, expanding geographic reach and extending the duration of customer collaboration. ✓ Increasing share in Australia & New Zealand through new customer acquisitions and project conversion enabled by customer integration. ✓ Influencing how homeowners build, driving market share growth where we have the right-to- win through Co-Creation and leveraging the James Hardie brand. ✓ Innovating to accelerate material conversion with a key focus on the new construction end market against brick & masonry. ✓ Driving HOS savings to support our strong financial performance. ✓ Positioning to capture improvement in UK residential construction in the coming year. Germany is likely to see a more gradual improvement. ✓ Investing in sales teams to further enable growth of our high-value products. ✓ Leveraging product depth and breadth to create value for and win with our customers.
6 Q3 FY25 Earnings Presentation 1 2 3 Profitably grow and take share where we have the right to win Bring our customers high valued, differentiated solutions Connect and influence all the participants in the customer value chain Our Strategy Spans the Value Chain Homeowner Focused, Customer and Contractor Driven Innovative Solutions Brand of Choice Strategic Initiatives Supported By Our Foundational Imperatives Enabled By Customer Integration Capacity Expansion
7 Q3 FY25 Earnings Presentation Flywheel for Long-Term Value Creation Demand C reatio n M a te ri al C onversion Long-Term Value Creation Driving Long-Term Profitable Share Gain Taking Share from Competing Substrates within R&R and New Construction Supporting the Growth of Our Partners Through Unrivaled Support and Localized Manufacturing Creating Demand Across the Customer Value Chain The Brand of Choice for Homeowners, Customers & Contractors Providing Customers With Innovative Product Solutions Trusted Brand with Beautiful Aesthetics, Superior Durability and Low Maintenance Homeowner Focused, Customer and Contractor Driven U n riv aled Support Innovativ e S o lu ti o n s
8 Q3 FY25 Earnings Presentation Positioned to Outperform the Market and Deliver on Our FY25 Commitments Planning for Profitable Growth in FY26 Financial Key Messages On-Track to Achieve Our Guidance Executing Our Returns-Driven Capital Allocation Framework Consistent Results Delivery %
9 Q3 FY25 Earnings Presentation Third Quarter FY25 Financial Highlights Net Sales Adjusted EBITDA Adjusted Net Income Adjusted EBITDA Margin Achieved Growth in ASP Across our Regions Comparing vs. Record Q3 Results in FY24 Comparing vs. Record Q3 Results in FY24 Comparing vs. Record Q3 Results in FY24 (3%) (7%) (120bps) (15%) Mitigating the Impacts of Challenged Market Demand and Unfavorable Raw Materials $953mm $262mm 27.5% $154mm
10 Q3 FY25 Earnings Presentation Third Quarter FY25 Adjusted EBITDA Note: Impact from lower sales in North America represents the change in sales multiplied by Q3 FY24 EBITDA margin. ANZ refers to the collective performance of our business in Australia and New Zealand. The words underlying growth for Europe refer to segment results before considering the prior year benefit of a €4.2mm customer rebate true-up. Numbers may not add due to rounding. North America HOS Savings & Clutch Actions, Underlying Growth in ANZ & EU Offset By Record Comparison, Raw Material Headwinds, Comparability Items mm 2 mm ) olumes artially ffset y Favorable nfavorable Fixed Cost bsorption Raw Material Headwinds More than ffset y hilippines More than ffset y Favorable Rebate rue p F 2 re andemic) F 2 F 24 ower ales nderlying rofitability Change sia acific E Europe E Excluding tock ased Compensation tock ased Compensation F 2
11 Q3 FY25 Earnings Presentation North America Fiber Cement Results Net Sales ($mm) EBIT ($mm) EBITDA ($mm) EBITDA Margin % EBIT Margin % Average Net Sales Price Sales Volume Q3 FY25 Q3 FY24 vs. PY $719.3 $727.0 (1%) Delivered Results Consistent With Expectations, On-Track to Achieve 2H and FY25 Guidance 744.0 mmsf 766.5 mmsf (3%) $960 /msf $943 /msf +2% $209.3 $237.8 (12%) 29.1% 32.7% (360bps) Key Drivers ✓ Net Sales roughly even with prior year, with volumes above Q2, as expected ▪ Exteriors declined (LSD%) vs. record Q3 FY24 ▪ Interiors declined (MSD%) ✓ ASP growth reflects our January 2024 price increase ✓ Achieved EBIT margin above expectations ▪ ~(110bps) Incremental D&A impact to EBIT margin ▪ Comparing vs. all-time record EBIT and margin $250.5 $271.3 (8%) 34.8% 37.3% (250bps) D&A ($mm) $41.2 $33.5 +23% ✓ Margin drivers consistent with guidance ▪ Unfavorable raw materials (principally pulp & cement) ▪ Investing in growth and scale while managing margins decisively ▪ Manufacturing & procurement HOS savings ▪ Unfavorable cost absorption with lower volume
12 Q3 FY25 Earnings Presentation Asia Pacific Fiber Cement Results Net Sales ($mm) EBIT ($mm) EBITDA ($mm) EBITDA Margin % EBIT Margin % Sales Volume – Australia & New Zealand Sales Volume Q3 FY25 Q3 FY24 vs. PY1 $118.1 $133.8 (12%) 2H Performance Tracking Toward Outlook; Growing Sales and Expanding Margins in ANZ 95.8 mmsf 133.1 mmsf (28%) (LSD%) $34.8 $36.7 (5%) 29.3% 27.5% +180bps Key Drivers $39.7 $40.9 (3%) 33.5% 30.6% +290bps D&A ($mm) $4.9 $4.2 +17% Note: Financial figures above are presented in millions of US$, unless otherwise noted. For more information regarding segment financial performance in A$, please see the current quarter’s Management’s nalysis of Results. Net Sales (A$) (13%) ✓ Australia & New Zealand net sales approximately flat in local currency ▪ (LSD%) volume decline due to continued market softness, outperforming the market driven by our material conversion strategies and Co-creation efforts ✓ Slight comparable increase in ASP driven by recent price increases ✓ Higher margins reflect our Philippines decision ✓ Australia & New Zealand EBIT relatively flat in local currency with margin +30bps ▪ Capturing the value that our products demand in the market ▪ Higher energy costs ▪ Driving HOS savings to fund growth investments Average Net Sales Price A$1,658 /msf A$1,384 /msf +20% Net Sales (A$) – Australia & New Zealand (~Flat) 1) Philippines volumes were de minimis in Q3 FY25 as production ceased in August and commercial operations were largely wound down by the end of September. Results for Q3 FY24 included contribution from Philippines operations, leading to comparability impacts to YOY% performance in segment volume, ASP, sales, margins and, to a lesser extent, EBIT.
13 Q3 FY25 Earnings Presentation Europe Building Products Results Net Sales ($mm) EBIT ($mm) EBITDA ($mm) EBITDA Margin % EBIT Margin % Average Net Sales Price Sales Volume Q3 FY25 Q3 FY24 vs. PY1 $115.9 $117.5 (1%) High-Value Products Focus is Driving Higher YTD Volumes and ASP 183.1 mmsf 179.7 mmsf +2% € 4 /msf €484 /msf +4% $3.6 $7.6 (53%) 3.1% 6.5% (340bps) Key Drivers $11.9 $15.2 (22%) 10.3% 12.9% (260bps) D&A ($mm) $8.3 $7.6 +9% Net Sales (€) (1%) Note: Financial figures above are presented in millions of US$, unless otherwise noted. For more information regarding segment financial performance in Euros €), please see the current quarter’s Management’s nalysis of Results. ✓ Delivered +LSD% underlying1 sales growth ▪ Fiber Gypsum Down (MSD%) in local currency and relatively flat on an underlying basis. ▪ Fiber Cement Up +21% in local currency ✓ High-Value Products (HVP) sales grew +LDD% in Q3 and +10% YTD in local currency ✓ Favorable ASP ✓ EBIT grew and EBIT Margin expanded vs. prior year on an underlying1 basis ▪ Growth in high-value products ▪ Higher gypsum costs and fiber cement product purchase prices ▪ Investment in sales teams to support HVP growth ▪ Lower marketing spend 1) Management does not consider these comparisons to be representative of true operating performance in the quarter, due to a benefit of a +€4.2mm in F 24 related to a customer rebate true-up. Comparisons presented on this slide are nevertheless made on an as-reported basis and references to “underlying” performance reflect comparisons excluding this benefit from the prior year results.
14 Q3 FY25 Earnings Presentation Cash Generation & Capital Allocation ✓ $811mm YTD Adjusted EBITDA ✓ $657mm YTD Operating Cash Flow, including the impact of ($88mm) of payments made by AICF ✓ $539mm of Cash on Balance Sheet ✓ Enhanced focus on driving value and cash profitability ✓ Net leverage ratio of 0.52x ✓ ~$600mm of Available Capacity on Revolver ✓ Well-positioned to fund capital allocation priorities ✓ 45% Adjusted ROCE (Avg. FY20-FY24) ❑ Evaluate capacity expansion using robust criteria for incremental returns informed by utilization and demand forecasting ❑ FY25 Capacity Actions to Support Growth ▪ Continue Prattville, AL expansion ▪ Continue Orejo, ES expansion ▪ Plan Cleburne, TX expansion ▪ Plan Crystal City, MO greenfield Generate Cash 2) Maintain Flexible Balance Sheet 1) Invest in Organic Growth ✓ Increased share repurchase program to $300mm during 1Q and deployed the remaining $75mm to share repurchases during 2Q ✓ New $300mm share repurchase program authorized in November 2024 3) Deploy Excess Capital to Shareholders% ❑ Accelerate Our Current Strategy ❑ Enhance Our Value Proposition ❑ Create Long-Term Financial Value 4) Positioned for M&A To: Diligent Stewards of Investor Capital James Hardie Capital Allocation Framework Note: Cash on Balance Sheet refers to cash and cash equivalents and excludes restricted cash.
15 Q3 FY25 Earnings Presentation FY25 North America Volume North America EBIT Margin Total Adjusted Net Income Volume Outlook Consistent with Prior Expectations Delivering Price Realization, HOS Savings and Clutch Actions Increased Confidence in Margin and Net Income Guidance 2.95+ bnsf (unchanged) 29.3%+ (unchanged) $635mm+ (unchanged) Note: Total Adjusted Net income guidance for the full year FY25 contemplates adjusted net interest expense of no more than $25mm (prev. ~$25mm) and is based on an estimated 23.0% to 24.0% (unchanged) adjusted effective tax rate. Capital Expenditures ~$420mm (prev. $420-440mm) 2H FY25 1.48+ bnsf (unchanged) 28.5%+ (unchanged) FY25 Guidance $300mm+ (unchanged)
16 Q3 FY25 Earnings Presentation Growth and Margin Expansion Across Regions Offsetting +HSD% Inflation in Raw Materials in FY26 Continuous Achievement of HOS Savings Note: Total Depreciation & Amortization expense for FY26 is assumed to be ~$225mm vs. ~$210mm in FY25. Assuming current debt balances and market interest rates, FY26 Interest Expense would amount to approximately ~$60mm vs. ~$62mm in FY25. Of this, Capitalized Interest in FY26 is assumed to be approximately ~$20mm, unchanged from FY25, leaving ~$40mm to be expensed on a net basis vs. ~$42mm in FY25, before considering interest income earned on cash balances and excluding AICF interest income. The above Depreciation and Capitalized Interest assumptions reflect current in-service fixed assets and do not contemplate any additional major capacity expansion projects going into service in FY26. Based on current expectations, Adjusted Effective Tax Rate in FY26 is assumed to be relatively similar to FY25 (23.0% to 24.0%). Planning Assumptions & Aspirations FY26 Planning Assumptions North America Net Sales Growth Growth vs. FY25 North America Adjusted EBITDA Margin Expansion vs. FY25 Long-Term Aspirations Double-Digit % +500bps vs. FY24 North America Adjusted EBITDA ($mm) Growth vs. FY25 3x vs. FY24 Total Adjusted EBITDA ($mm) Growth vs. FY25
17 Q3 FY25 Earnings Presentation We Are Positioned to Accelerate Growth Long-Term Shareholder Value Creation We Have the Right Strategy We Aspire to Deliver Profitable Growth We Are Anchoring on Bold Ambitions Long-Term Value Creation Homeowner Focused, Customer and Contractor Driven +DD% +500bps $ $ $ $$ 3x Revenue Adj. EBITDA Margin Returns North America Adjusted EBITDA Note: “Homes” refers to the conceptual number of cumulative homes with Hardie® siding in North America based on total sales volumes and housing intensity of 2,600 sqft of siding per home. Double-Digit North America revenue growth includes an assumption for low single-digit % market growth, +4pp of market outperformance, and mid-single digit contribution from growth in average sale price per unit. References to increases in North America adjusted EBITDA and adjusted EBITDA margin expansion are vs. FY24. Increasing North America adjusted EBITDA by 3x incorporates management estimates for double-digit sales growth supported by capacity additions and underlying profitability improvements.
18 Q3 FY25 Earnings Presentation Q&A Aaron Erter Chief Executive Officer Rachel Wilson Chief Financial Officer
19 Q3 FY25 Earnings Presentation Non-GAAP Financial Measures This Earnings Presentation forms part of a package of information about the company’s results. It should be read in conjunction with the other parts of this package, including the Management’s Analysis of Results, Earnings Release and Condensed Consolidated Financial Statements Financial Measures – GAAP Equivalents This document contains the financial statement line item EBIT, which is considered to be non-GAAP, but is consistent with the term used by Australian companies. Because we prepare our condensed consolidated financial statements under GAAP, the equivalent GAAP financial Statement line item description used in our consolidated financial statements is Operating income (loss). EBIT – Earnings (loss) before interest and tax EBIT margin – EBIT margin is defined as EBIT as a percentage of net sales Definitions ASP – Average net sales price per msf ("ASP") – Total net sales of fiber cement and fiber gypsum products, excluding accessory sales, divided by the total volume of products sold Working Capital – The working capital calculation used in our cash provided by operating analysis includes the change in: (1) Accounts and other receivables, net; (2) Inventories; and (3) Accounts payable and accrued liabilities. ROCE - Return on Capital Employed; calculated as Adjusted EBIT / Adjusted Gross Capital Employed AICF – Asbestos Injuries Compensation Fund Ltd bnsf – sales volume in billion standard feet, where a standard foot is defined as a square foot of 5/16” thickness mmsf – sales volume in million standard feet, where a standard foot is defined as a square foot of 5/16” thickness msf – sales volume in thousand standard feet, where a standard foot is defined as a square foot of 5/16” thickness LSD – Low Single-Digits MSD – Mid-Single Digits HSD – High Single-Digits DD – Double-Digits LDD – Low Double-Digits D&A – Depreciation & Amortization expense
20 Q3 FY25 Earnings Presentation Adjusted diluted earnings per share Q3 FY25 Q3 FY24 9 Months FY25 9 Months FY24 Adjusted net income (US$ Millions) 153.6$ 179.9$ 488.2$ 533.3$ Weighted average common shares outstanding - Diluted (millions) 430.9 438.3 432.6 440.6 Adjusted diluted earnings per share 0.36$ 0.41$ 1.13$ 1.21$ Three and Nine Months Ended 31 December US$ Millions Q3 FY25 Q3 FY24 9 Months FY25 9 Months FY24 Europe Building Products Segment EBIT 3.6$ 7.6$ 24.7$ 31.9$ Europe Building Products Segment net sales 115.9 117.5 359.8 353.9 Europe Building Products Segment EBIT margin 3.1% 6.5% 6.8% 9.0% Depreciation and amortization 8.3 7.6 23.9 21.5 Europe Building Products Segment EBITDA 11.9$ 15.2$ 48.6$ 53.4$ Europe Building Products Segment EBITDA Margin 10.3% 12.9% 13.5% 15.1% Three and Nine Months Ended 31 December Europe Building Products Segment EBIT and EBITDA US$ Millions Q3 FY25 Q3 FY24 9 Months FY25 9 Months FY24 Asia Pacific Fiber Cement Segment EBIT 34.8$ 36.7$ 68.0$ 127.6$ Restructuring expenses - - 57.3 - Asia Pacific Fiber Cement Segment Adjusted EBIT 34.8$ 36.7$ 125.3$ 127.6$ Asia Pacific Fiber Cement Segment net sales 118.1 133.8 401.8 421.3 Asia Pacific Fiber Cement Segment Adjusted EBIT margin 29.3% 27.5% 31.1% 30.3% Depreciation and amortization 4.9 4.2 14.4 12.5 Asia Pacific Fiber Cement Segment Adjusted EBITDA 39.7$ 40.9$ 139.7$ 140.1$ Asia Pacific Fiber Cement Segment Adjusted EBITDA Margin 33.5% 30.6% 34.7% 33.2% Asia Pacific Fiber Cement Segment Adjusted EBIT and Adjusted EBITDA Three and Nine Months Ended 31 December US$ Millions Q3 FY25 Q3 FY24 9 Months FY25 9 Months FY24 North America Fiber Cement Segment EBIT 209.3$ 237.8$ 638.5$ 688.1$ North America Fiber Cement Segment net sales 719.3 727.0 2,144.4 2,156.2 North America Fiber Cement Segment EBIT margin 29.1% 32.7% 29.8% 31.9% Depreciation and amortization 41.2 33.5 115.5 99.6 North America Fiber Cement Segment EBITDA 250.5$ 271.3$ 754.0$ 787.7$ North America Fiber Cement Segment EBITDA Margin 34.8% 37.3% 35.2% 36.5% North America Fiber Cement Segment EBIT and EBITDA Three and Nine Months Ended 31 December Adjusted net income US$ Millions Q3 FY25 Q3 FY24 9 Months FY25 9 Months FY24 Net income 141.7$ 145.1$ 380.4$ 454.6$ Asbestos related expenses and adjustments 0.9 8.0 2.9 4.8 AICF interest income (2.7) (2.2) (8.5) (6.7) Restructuring expenses - - 57.3 20.1 Tax adjustments1 13.7 29.0 56.1 60.5 Adjusted net income 153.6$ 179.9$ 488.2$ 533.3$ Three and Nine Months Ended 31 December Adjusted EBIT and Adjusted EBITDA US$ Millions Q3 FY25 Q3 FY24 9 Months FY25 9 Months FY24 EBIT 206.1$ 226.1$ 593.8$ 683.4$ Asbestos related expenses and adjustments 0.9 8.0 2.9 4.8 Restructuring expenses - - 57.3 20.1 Adjusted EBIT 207.0$ 234.1$ 654.0$ 708.3$ Net sales 953.3 978.3 2,906.0 2,931.4 Adjusted EBIT margin 21.7% 23.9% 22.5% 24.2% Depreciation and amortization 55.1 46.3 156.8 136.7 Adjusted EBITDA 262.1$ 280.4$ 810.8$ 845.0$ Adjusted EBITDA Margin 27.5% 28.7% 27.9% 28.8% Three and Nine Months Ended 31 December Non-GAAP Financial Measures 1) Includes tax adjustments related to the amortization benefit of certain US intangible assets, asbestos, and other tax adjustments
21 Q3 FY25 Earnings Presentation Net Leverage Ratio US$ Millions FY25 FY24 Numerator: Total principal amount of debt 1,108.7$ 1,142.6$ Less: Cash and cash equivalents (539.1) (433.8) Add: Letters of credit and bank guarantees 5.9 6.4 Total 575.5$ 715.2$ Denominator: (Trailing 12 months) EBIT 677.8$ 814.0$ Asbestos related expenses and adjustments 151.4 61.7 Restructuring expenses 57.3 20.1 Depreciation and amortization 205.1 182.7 Stock compensation - equity awards 25.4 26.9 Total 1,117.0$ 1,105.4$ Net Leverage ratio 0.52x 0.65x 31 December Adjusted effective tax rate US$ Millions Q3 FY25 Q3 FY24 9 Months FY25 9 Months FY24 Income before income taxes 202.3$ 223.6$ 586.6$ 672.8$ Asbestos related expenses and adjustments 0.9 8.0 2.9 4.8 AICF interest income (2.7) (2.2) (8.5) (6.7) Restructuring expenses - - 57.3 20.1 Adjusted income before income taxes 200.5$ 229.4$ 638.3$ 691.0$ Income tax expense 60.6 78.5 206.2 218.2 Tax adjustments1 (13.7) (29.0) (56.1) (60.5) Adjusted income tax expense 46.9$ 49.5$ 150.1$ 157.7$ Effective tax rate 30.0% 35.1% 35.2% 32.4% Adjusted effective tax rate 23.4% 21.6% 23.5% 22.8% Three and Nine Months Ended 31 December US$ Millions Q3 FY25 Q3 FY24 9 Months FY25 9 Months FY24 Interest, net 3.8$ 3.1$ 7.4$ 13.4$ AICF interest income (2.7) (2.2) (8.5) (6.7) Adjusted interest, net 6.5$ 5.3$ 15.9$ 20.1$ Adjusted interest, net Three and Nine Months Ended 31 December US$ Millions Q3 FY25 Q3 FY24 9 Months FY25 9 Months FY24 General Corporate costs 31.8$ 48.0$ 108.8$ 138.8$ Less: Restructuring expenses - - - (20.1) Asbestos related expenses and adjustments (0.9) (8.0) (2.9) (4.8) Adjusted General Corporate costs 30.9$ 40.0$ 105.9$ 113.9$ Adjusted General Corporate costs Three and Nine Months Ended 31 December Non-GAAP Financial Measures 1) Includes tax adjustments related to the amortization benefit of certain US intangible assets, asbestos, and other tax adjustments
22 Q3 FY25 Earnings Presentation A$ Millions Q3 FY25 Q3 FY24 9 Months FY25 9 Months FY24 Asia Pacific Fiber Cement Segment EBIT 52.8A$ 56.7A$ 104.3A$ 194.1A$ Restructuring expenses - - 84.7 - Asia Pacific Fiber Cement Segment Adjusted EBIT 52.8A$ 56.7A$ 189.0A$ 194.1A$ Asia Pacific Fiber Cement Segment net sales 180.1 206.3 606.9 641.1 Asia Pacific Fiber Cement Segment Adjusted EBIT margin 29.3% 27.5% 31.1% 30.3% Depreciation and amortization 7.5 6.5 21.8 19.0 Asia Pacific Fiber Cement Segment Adjusted EBITDA 60.3A$ 63.2A$ 210.8A$ 213.1A$ Asia Pacific Fiber Cement Segment Adjusted EBITDA Margin 33.5% 30.6% 34.7% 33.2% € M Q3 FY25 Q3 FY24 9 Months FY25 9 Months FY24 Europe Building Products Segment EBIT 3.4€ 7.1€ 22.8€ 29.4€ Europe Building Products Segment net sales 108.6 109.3 332.9 326.5 Europe Building Products Segment EBIT margin 3.1% 6.5% 6.8% 9.0% Depreciation and amortization 7.8 7.0 22.1 19.8 Europe Building Products Segment EBITDA 11.2€ 14.1€ 44.9€ 49.2€ Europe Building Products Segment EBITDA Margin 10.3% 12.9% 13.5% 15.1% Three and Nine Months Ended 31 December Asia Pacific Fiber Cement Segment Adjusted EBIT and Adjusted EBITDA Europe Building Products Segment EBIT and EBITDA Three and Nine Months Ended 31 December Non-GAAP Financial Measures
Exhibit 99.5
James Hardie Industries plc
Condensed Consolidated Financial Statements
as of and for the Three and Nine Months Ended 31 December 2024
F-1
James Hardie Industries plc
Index
| Page | |||||
F-2
James Hardie Industries plc
Condensed Consolidated Balance Sheets
| (Millions of US dollars) | (Unaudited) 31 December 2024 | 31 March 2024 | |||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 539.1 | $ | 365.0 | |||||||
| Restricted cash and cash equivalents | 5.0 | 5.0 | |||||||||
| Restricted cash and cash equivalents - Asbestos | 13.4 | 45.8 | |||||||||
| Restricted short-term investments - Asbestos | 174.1 | 178.4 | |||||||||
| Accounts and other receivables, net | 270.6 | 366.1 | |||||||||
| Inventories | 350.3 | 337.8 | |||||||||
| Prepaid expenses and other current assets | 70.5 | 68.2 | |||||||||
| Assets held for sale | 60.7 | 55.4 | |||||||||
| Insurance receivable - Asbestos | 4.9 | 5.1 | |||||||||
| Workers’ compensation - Asbestos | 1.5 | 1.6 | |||||||||
| Total current assets | 1,490.1 | 1,428.4 | |||||||||
| Property, plant and equipment, net | 2,108.3 | 2,037.8 | |||||||||
| Operating lease right-of-use-assets | 69.1 | 60.9 | |||||||||
| Goodwill | 186.0 | 192.6 | |||||||||
| Intangible assets, net | 141.1 | 149.2 | |||||||||
| Insurance receivable - Asbestos | 22.3 | 26.4 | |||||||||
| Workers’ compensation - Asbestos | 13.0 | 13.6 | |||||||||
| Deferred income taxes | 604.4 | 690.4 | |||||||||
| Deferred income taxes - Asbestos | 251.2 | 294.0 | |||||||||
| Other assets | 22.7 | 19.3 | |||||||||
| Total assets | $ | 4,908.2 | $ | 4,912.6 | |||||||
| Liabilities and Shareholders’ Equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable and accrued liabilities | $ | 391.1 | $ | 463.3 | |||||||
| Accrued payroll and employee benefits | 108.5 | 143.3 | |||||||||
| Operating lease liabilities | 20.7 | 19.0 | |||||||||
| Long-term debt, current portion | 7.5 | 7.5 | |||||||||
| Accrued product warranties | 6.7 | 7.3 | |||||||||
| Income taxes payable | 2.7 | 13.0 | |||||||||
| Asbestos liability | 111.4 | 116.7 | |||||||||
| Workers’ compensation - Asbestos | 1.5 | 1.6 | |||||||||
| Other liabilities | 34.4 | 26.0 | |||||||||
| Total current liabilities | 684.5 | 797.7 | |||||||||
| Long-term debt | 1,096.2 | 1,115.1 | |||||||||
| Deferred income taxes | 116.4 | 107.5 | |||||||||
| Operating lease liabilities | 63.7 | 59.4 | |||||||||
| Accrued product warranties | 27.7 | 28.9 | |||||||||
| Asbestos liability | 751.2 | 873.0 | |||||||||
| Workers’ compensation - Asbestos | 13.0 | 13.6 | |||||||||
| Other liabilities | 55.2 | 58.5 | |||||||||
| Total liabilities | 2,807.9 | 3,053.7 | |||||||||
| Commitments and contingencies (Note 8) | |||||||||||
| Shareholders’ equity: | |||||||||||
Common stock, Euro 0.59 par value, 2.0 billion shares authorized; 429,787,099 shares issued and outstanding at 31 December 2024 and 433,784,634 shares issued and outstanding at 31 March 2024 | 222.1 | 224.7 | |||||||||
| Additional paid-in capital | 265.7 | 256.5 | |||||||||
| Retained earnings | 1,682.1 | 1,446.0 | |||||||||
| Accumulated other comprehensive loss | (69.6) | (68.3) | |||||||||
| Total shareholders’ equity | 2,100.3 | 1,858.9 | |||||||||
| Total liabilities and shareholders’ equity | $ | 4,908.2 | $ | 4,912.6 | |||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
F-3
James Hardie Industries plc
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited)
| Three Months Ended 31 December | Nine Months Ended 31 December | ||||||||||||||||||||||||||||||||||
| (Millions of US dollars, except per share data) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||||||||||
| Net sales | $ | 953.3 | $ | 978.3 | $ | 2,906.0 | $ | 2,931.4 | |||||||||||||||||||||||||||
| Cost of goods sold | 590.9 | 577.6 | 1,773.8 | 1,753.7 | |||||||||||||||||||||||||||||||
| Gross profit | 362.4 | 400.7 | 1,132.2 | 1,177.7 | |||||||||||||||||||||||||||||||
| Selling, general and administrative expenses | 144.7 | 156.3 | 444.4 | 438.0 | |||||||||||||||||||||||||||||||
| Research and development expenses | 11.5 | 10.7 | 36.1 | 32.5 | |||||||||||||||||||||||||||||||
| Restructuring expenses | — | — | 57.3 | 20.1 | |||||||||||||||||||||||||||||||
Asbestos adjustments | 0.1 | 7.6 | 0.6 | 3.7 | |||||||||||||||||||||||||||||||
| Operating income | 206.1 | 226.1 | 593.8 | 683.4 | |||||||||||||||||||||||||||||||
| Interest, net | 3.8 | 3.1 | 7.4 | 13.4 | |||||||||||||||||||||||||||||||
| Other income, net | — | (0.6) | (0.2) | (2.8) | |||||||||||||||||||||||||||||||
| Income before income taxes | 202.3 | 223.6 | 586.6 | 672.8 | |||||||||||||||||||||||||||||||
| Income tax expense | 60.6 | 78.5 | 206.2 | 218.2 | |||||||||||||||||||||||||||||||
| Net income | $ | 141.7 | $ | 145.1 | $ | 380.4 | $ | 454.6 | |||||||||||||||||||||||||||
| Income per share: | |||||||||||||||||||||||||||||||||||
| Basic | $ | 0.33 | $ | 0.33 | $ | 0.88 | $ | 1.03 | |||||||||||||||||||||||||||
| Diluted | $ | 0.33 | $ | 0.33 | $ | 0.88 | $ | 1.03 | |||||||||||||||||||||||||||
| Weighted average common shares outstanding (Millions): | |||||||||||||||||||||||||||||||||||
| Basic | 429.5 | 437.0 | 431.2 | 439.4 | |||||||||||||||||||||||||||||||
| Diluted | 430.9 | 438.3 | 432.6 | 440.6 | |||||||||||||||||||||||||||||||
| Comprehensive income, net of tax: | |||||||||||||||||||||||||||||||||||
| Net income | $ | 141.7 | $ | 145.1 | $ | 380.4 | $ | 454.6 | |||||||||||||||||||||||||||
| Currency translation adjustments | (20.0) | 32.4 | (9.7) | 9.6 | |||||||||||||||||||||||||||||||
| Cash flow hedges | — | — | (0.1) | — | |||||||||||||||||||||||||||||||
| Reclassification of other comprehensive income | — | — | 8.5 | — | |||||||||||||||||||||||||||||||
| Comprehensive income | $ | 121.7 | $ | 177.5 | $ | 379.1 | $ | 464.2 | |||||||||||||||||||||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
F-4
James Hardie Industries plc
Condensed Consolidated Statements of Cash Flows (Unaudited)
| Nine Months Ended 31 December | |||||||||||||||||
| (Millions of US dollars) | 2024 | 2023 | |||||||||||||||
| Cash Flows From Operating Activities | |||||||||||||||||
| Net income | $ | 380.4 | $ | 454.6 | |||||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
| Depreciation and amortization | 156.8 | 136.7 | |||||||||||||||
| Lease expense | 24.6 | 19.6 | |||||||||||||||
| Deferred income taxes | 94.8 | 69.4 | |||||||||||||||
| Stock-based compensation | 17.7 | 20.5 | |||||||||||||||
Asbestos adjustments | 0.6 | 3.7 | |||||||||||||||
| Gain on sale of land | — | (2.0) | |||||||||||||||
| Non-cash restructuring expenses | 40.2 | 20.1 | |||||||||||||||
| Other, net | 18.5 | 26.3 | |||||||||||||||
| Changes in operating assets and liabilities: | |||||||||||||||||
| Accounts and other receivables | 86.4 | 39.5 | |||||||||||||||
| Inventories | (20.5) | 24.5 | |||||||||||||||
| Operating lease assets and liabilities, net | (25.8) | (20.2) | |||||||||||||||
| Prepaid expenses and other assets | (8.6) | (30.3) | |||||||||||||||
| Insurance receivable - Asbestos | 3.0 | 4.0 | |||||||||||||||
| Accounts payable and accrued liabilities | (15.6) | 57.2 | |||||||||||||||
| Claims and handling costs paid - Asbestos | (87.7) | (95.0) | |||||||||||||||
| Income taxes payable | (10.2) | (5.6) | |||||||||||||||
| Other accrued liabilities | 2.8 | 26.5 | |||||||||||||||
| Net cash provided by operating activities | $ | 657.4 | $ | 749.5 | |||||||||||||
| Cash Flows From Investing Activities | |||||||||||||||||
| Purchases of property, plant and equipment | $ | (333.0) | $ | (328.2) | |||||||||||||
| Proceeds from sale of property, plant and equipment | — | 4.1 | |||||||||||||||
| Capitalized interest | (16.7) | (13.3) | |||||||||||||||
| Purchase of restricted investments - Asbestos | (145.2) | (104.8) | |||||||||||||||
| Proceeds from restricted investments - Asbestos | 141.4 | 92.2 | |||||||||||||||
| Other | 0.4 | — | |||||||||||||||
| Net cash used in investing activities | $ | (353.1) | $ | (350.0) | |||||||||||||
| Cash Flows From Financing Activities | |||||||||||||||||
| Shares repurchased | $ | (149.9) | $ | (196.3) | |||||||||||||
| Proceeds from term loan | — | 300.0 | |||||||||||||||
| Repayments of term loan | (5.6) | — | |||||||||||||||
| Proceeds from revolving credit facility | — | 95.0 | |||||||||||||||
| Repayments of revolving credit facility | — | (325.0) | |||||||||||||||
| Debt issuance costs | — | (1.2) | |||||||||||||||
| Proceeds from issuance of shares | — | 0.3 | |||||||||||||||
| Repayment of finance lease obligations | (0.9) | (0.8) | |||||||||||||||
| Taxes paid related to net share settlement of equity awards | (7.3) | (4.9) | |||||||||||||||
| Net cash used in financing activities | $ | (163.7) | $ | (132.9) | |||||||||||||
| Effects of exchange rate changes on cash and cash equivalents, restricted cash and restricted cash - Asbestos | $ | 1.1 | $ | (1.2) | |||||||||||||
| Net increase in cash and cash equivalents, restricted cash and restricted cash - Asbestos | 141.7 | 265.4 | |||||||||||||||
| Cash and cash equivalents, restricted cash and restricted cash - Asbestos at beginning of period | 415.8 | 185.6 | |||||||||||||||
| Cash and cash equivalents, restricted cash and restricted cash - Asbestos at end of period | $ | 557.5 | $ | 451.0 | |||||||||||||
| Non-Cash Investing and Financing Activities | |||||||||||||||||
| Capital expenditures incurred but not yet paid | $ | 23.2 | $ | 38.1 | |||||||||||||
| Supplemental Disclosure of Cash Flow Activities | |||||||||||||||||
| Cash paid to AICF | $ | 49.6 | $ | 45.9 | |||||||||||||
F-5
James Hardie Industries plc
Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited)
| Three Months Ended 31 December 2024 | |||||||||||||||||||||||||||||||||||
| (Millions of US dollars) | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | Total | |||||||||||||||||||||||||||||
Balances as of 30 September 2024 | $ | 221.9 | $ | 264.1 | $ | 1,540.4 | $ | — | $ | (49.6) | $ | 1,976.8 | |||||||||||||||||||||||
| Net income | — | — | 141.7 | — | — | 141.7 | |||||||||||||||||||||||||||||
| Other comprehensive loss | — | — | — | — | (20.0) | (20.0) | |||||||||||||||||||||||||||||
| Stock-based compensation | 0.2 | 0.1 | — | — | — | 0.3 | |||||||||||||||||||||||||||||
| Issuance of ordinary shares | — | 1.5 | — | — | — | 1.5 | |||||||||||||||||||||||||||||
Balances as of 31 December 2024 | $ | 222.1 | $ | 265.7 | $ | 1,682.1 | $ | — | $ | (69.6) | $ | 2,100.3 | |||||||||||||||||||||||
| Nine Months Ended 31 December 2024 | |||||||||||||||||||||||||||||||||||
| (Millions of US dollars) | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | Total | |||||||||||||||||||||||||||||
Balances as of 31 March 2024 | $ | 224.7 | $ | 256.5 | $ | 1,446.0 | $ | — | $ | (68.3) | $ | 1,858.9 | |||||||||||||||||||||||
| Net income | — | — | 380.4 | — | — | 380.4 | |||||||||||||||||||||||||||||
| Other comprehensive loss | — | — | — | — | (1.3) | (1.3) | |||||||||||||||||||||||||||||
| Stock-based compensation | 0.3 | 10.1 | — | — | — | 10.4 | |||||||||||||||||||||||||||||
| Issuance of ordinary shares | — | 1.8 | — | — | 1.8 | ||||||||||||||||||||||||||||||
| Shares repurchased | — | — | — | (149.9) | — | (149.9) | |||||||||||||||||||||||||||||
| Shares cancelled | (2.9) | (2.7) | (144.3) | 149.9 | — | — | |||||||||||||||||||||||||||||
Balances as of 31 December 2024 | $ | 222.1 | $ | 265.7 | $ | 1,682.1 | $ | — | $ | (69.6) | $ | 2,100.3 | |||||||||||||||||||||||
| Three Months Ended 31 December 2023 | |||||||||||||||||||||||||||||||||||
| (Millions of US dollars) | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | Total | |||||||||||||||||||||||||||||
Balances as of 30 September 2023 | $ | 227.3 | $ | 246.5 | $ | 1,390.3 | $ | — | $ | (76.1) | $ | 1,788.0 | |||||||||||||||||||||||
| Net income | — | — | 145.1 | — | — | 145.1 | |||||||||||||||||||||||||||||
| Other comprehensive income | — | — | — | — | 32.4 | 32.4 | |||||||||||||||||||||||||||||
| Stock-based compensation | 0.1 | 4.5 | — | — | — | 4.6 | |||||||||||||||||||||||||||||
| Issuance of ordinary shares | — | 0.1 | — | — | — | 0.1 | |||||||||||||||||||||||||||||
| Shares repurchased | — | — | — | (75.0) | — | (75.0) | |||||||||||||||||||||||||||||
| Shares cancelled | (1.5) | (1.3) | (72.2) | 75.0 | — | — | |||||||||||||||||||||||||||||
Balances as of 31 December 2023 | $ | 225.9 | $ | 249.8 | $ | 1,463.2 | $ | — | $ | (43.7) | $ | 1,895.2 | |||||||||||||||||||||||
F-6
James Hardie Industries plc
Condensed Consolidated Statements of Changes in Shareholders' Equity (continued)
(Unaudited)
| Nine Months Ended 31 December 2023 | |||||||||||||||||||||||||||||||||||
| (Millions of US dollars) | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | Total | |||||||||||||||||||||||||||||
Balances as of 31 March 2023 | $ | 230.0 | $ | 237.9 | $ | 1,196.8 | $ | — | $ | (53.3) | $ | 1,611.4 | |||||||||||||||||||||||
| Net income | — | — | 454.6 | — | — | 454.6 | |||||||||||||||||||||||||||||
| Other comprehensive income | — | — | — | — | 9.6 | 9.6 | |||||||||||||||||||||||||||||
| Stock-based compensation | 0.2 | 15.4 | — | — | — | 15.6 | |||||||||||||||||||||||||||||
| Issuance of ordinary shares | — | 0.3 | — | — | — | 0.3 | |||||||||||||||||||||||||||||
| Shares repurchased | — | — | — | (196.3) | — | (196.3) | |||||||||||||||||||||||||||||
| Shares cancelled | (4.3) | (3.8) | (188.2) | 196.3 | — | — | |||||||||||||||||||||||||||||
Balances as of 31 December 2023 | $ | 225.9 | $ | 249.8 | $ | 1,463.2 | $ | — | $ | (43.7) | $ | 1,895.2 | |||||||||||||||||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
F-7
James Hardie Industries plc
Notes to Condensed Consolidated Financial Statements
1. Organization and Significant Accounting Policies
Nature of Operations
James Hardie Industries plc ("JHI plc") manufactures and sells fiber cement, fiber gypsum and cement-bonded building products for interior and exterior building construction applications, primarily in the United States, Australia, Europe and New Zealand. The Company also manufactured fiber cement in the Philippines through August 2024 and sold product through December 2024.
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the U.S. generally accepted accounting principles ("GAAP") for interim financial information. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. Interim financial results are not necessarily indicative of results anticipated for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto, included in the Company’s Annual Report on Form 20-F for the fiscal year ended 31 March 2024 from which the prior year balance sheet information herein was derived. The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expense, and related disclosures. Actual results could differ from those estimates. Certain prior period amounts have been reclassified to conform to the current period presentation.
The condensed consolidated financial statements represent the financial position, results of operations and cash flows of JHI plc and its wholly-owned subsidiaries and variable interest entity (“VIE”). Unless the context indicates otherwise, JHI plc and its direct and indirect wholly-owned subsidiaries and VIE (as of the time relevant to the applicable reference) are collectively referred to as “James Hardie”, the “James Hardie Group” or the “Company”. All intercompany balances and transactions have been eliminated in consolidation. In management’s opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments considered necessary for a fair presentation of the results for the interim periods presented.
The Company has recorded on its condensed consolidated balance sheets certain foreign assets and liabilities, that are denominated in foreign currencies and subject to translation or remeasurement into US dollars at each reporting date under the applicable accounting guidance. Unless otherwise noted, the Company converts foreign currency denominated assets and liabilities into US dollars at the spot rate at the end of the reporting period; while revenues and expenses are converted using an average exchange rate for the period.
The gains and losses on the remeasurement of the Company’s Euro denominated debt are economically offset by foreign exchange gains and losses on loans between subsidiaries, resulting in a net immaterial translation gain or loss which is recorded in the Selling, general and administrative expenses in the condensed consolidated statements of operations and comprehensive income.
Summary of Significant Accounting Policies
During the nine months ended 31 December 2024, there were no changes to our significant accounting policies as described in our Annual Report on Form 20-F for the fiscal year ended 31 March 2024.
F-8
James Hardie Industries plc
Notes to Condensed Consolidated Financial Statements (continued)
Accounting Standards Issued But Not Yet Adopted
In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2023-07, Segment Reporting (Topic 280). The amendments in the standard were issued to improve the disclosures about an entity’s reportable segments and address requests from investors for additional, more detailed information about a reportable segment’s expenses. These amendments are effective for fiscal years beginning after 15 December 2023, and interim periods within fiscal years beginning after 15 December 2024, with early adoption permitted. The Company will adopt ASU No. 2023-07 starting with its Form 20-F for the fiscal year ending 31 March 2025 and will be required to make additional disclosures in the notes to the consolidated financial statements.
In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740). The amendments in this standard enhance income tax disclosures primarily related to the rate reconciliation and income taxes paid information. These amendments are effective for fiscal years beginning after 15 December 2024, with early adoption permitted. The Company will adopt ASU No. 2023-09 starting with its Form 20-F for the fiscal year ending 31 March 2026 and will be required to make additional disclosures in the notes to the consolidated financial statements.
In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses (Subtopic 220-40). The amendments in this standard were issued to improve interim and annual reporting disclosures by breaking down expenses into specific categories in a clear, tabular format. These amendments are effective for fiscal years beginning after 15 December 2026, and interim periods within fiscal years beginning after 15 December 2027, with early adoption permitted. The Company plans to adopt ASU No. 2024-03 starting with its Form 20-F for the fiscal year ending 31 March 2028 and is currently evaluating the impact of the guidance to the consolidated financial statements.
Earnings Per Share
Basic earnings per share ("EPS") is calculated using net income divided by the weighted average number of common shares outstanding during the period. Diluted EPS is similar to basic EPS except that the weighted average number of common shares outstanding is increased to include the number of additional common shares calculated using the treasury method that would have been outstanding if the dilutive potential common shares, such as stock options and restricted stock units, had been issued.
Basic and diluted common shares outstanding used in determining net income per share are as follows:
| Three Months Ended 31 December | Nine Months Ended 31 December | ||||||||||||||||||||||
| (Millions of shares) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
| Basic common shares outstanding | 429.5 | 437.0 | 431.2 | 439.4 | |||||||||||||||||||
| Dilutive effect of stock awards | 1.4 | 1.3 | 1.4 | 1.2 | |||||||||||||||||||
| Diluted common shares outstanding | 430.9 | 438.3 | 432.6 | 440.6 | |||||||||||||||||||
There were no potential common shares which would be considered anti-dilutive for the three and nine months ended 31 December 2024 and 2023.
Potential common shares of 0.7 million and 0.6 million for the three and nine months ended 31 December 2024, respectively, and 0.6 million for both the three and nine months ended 31 December 2023 have been excluded from the calculation of diluted common shares outstanding as they are considered contingent shares which are not expected to vest.
F-9
James Hardie Industries plc
Notes to Condensed Consolidated Financial Statements (continued)
2. Revenues
The following represents the Company's disaggregated revenues:
| Three Months Ended 31 December 2024 | |||||||||||||||||||||||
| (Millions of US dollars) | North America Fiber Cement | Asia Pacific Fiber Cement | Europe Building Products | Consolidated | |||||||||||||||||||
| Fiber cement revenues | $ | 719.3 | $ | 118.1 | $ | 19.7 | $ | 857.1 | |||||||||||||||
| Fiber gypsum revenues | — | — | 96.2 | 96.2 | |||||||||||||||||||
| Total revenues | $ | 719.3 | $ | 118.1 | $ | 115.9 | $ | 953.3 | |||||||||||||||
| Three Months Ended 31 December 2023 | |||||||||||||||||||||||
| (Millions of US dollars) | North America Fiber Cement | Asia Pacific Fiber Cement | Europe Building Products | Consolidated | |||||||||||||||||||
| Fiber cement revenues | $ | 727.0 | $ | 133.8 | $ | 16.4 | $ | 877.2 | |||||||||||||||
| Fiber gypsum revenues | — | — | 101.1 | 101.1 | |||||||||||||||||||
| Total revenues | $ | 727.0 | $ | 133.8 | $ | 117.5 | $ | 978.3 | |||||||||||||||
Nine Months Ended 31 December 2024 | |||||||||||||||||||||||
| (Millions of US dollars) | North America Fiber Cement | Asia Pacific Fiber Cement | Europe Building Products | Consolidated | |||||||||||||||||||
| Fiber cement revenues | $ | 2,144.4 | $ | 401.8 | $ | 63.2 | $ | 2,609.4 | |||||||||||||||
| Fiber gypsum revenues | — | — | 296.6 | 296.6 | |||||||||||||||||||
| Total revenues | $ | 2,144.4 | $ | 401.8 | $ | 359.8 | $ | 2,906.0 | |||||||||||||||
Nine Months Ended 31 December 2023 | |||||||||||||||||||||||
| (Millions of US dollars) | North America Fiber Cement | Asia Pacific Fiber Cement | Europe Building Products | Consolidated | |||||||||||||||||||
| Fiber cement revenues | $ | 2,156.2 | $ | 421.3 | $ | 57.9 | $ | 2,635.4 | |||||||||||||||
| Fiber gypsum revenues | — | — | 296.0 | 296.0 | |||||||||||||||||||
| Total revenues | $ | 2,156.2 | $ | 421.3 | $ | 353.9 | $ | 2,931.4 | |||||||||||||||
The process by which the Company recognizes revenues is similar across each of the Company's reportable segments. Fiber cement and fiber gypsum revenues are primarily generated from the sale of siding and various boards used in external and internal applications, as well as accessories. Fiber gypsum revenues also includes the sale of cement-bonded boards in the Europe Building Products segment.
F-10
James Hardie Industries plc
Notes to Condensed Consolidated Financial Statements (continued)
3. Cash and Cash Equivalents, Restricted Cash and Restricted Cash - Asbestos
The following table provides a reconciliation of Cash and cash equivalents, Restricted cash and Restricted cash - Asbestos reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows:
| 31 December | 31 March | ||||||||||
| (Millions of US dollars) | 2024 | 2024 | |||||||||
| Cash and cash equivalents | $ | 539.1 | $ | 365.0 | |||||||
| Restricted cash | 5.0 | 5.0 | |||||||||
| Restricted cash - Asbestos | 13.4 | 45.8 | |||||||||
| Total | $ | 557.5 | $ | 415.8 | |||||||
Restricted cash relates to an insurance policy which restricts the cash from general corporate purposes.
Restricted cash - Asbestos is restricted to the settlement of asbestos claims and for the payment of the operating costs of Asbestos Injuries Compensation Fund (“AICF”).
4. Inventories
Inventories consist of the following components:
| 31 December | 31 March | ||||||||||
| (Millions of US dollars) | 2024 | 2024 | |||||||||
| Finished goods | $ | 248.5 | $ | 235.4 | |||||||
| Work-in-process | 25.5 | 25.1 | |||||||||
| Raw materials and supplies | 88.6 | 90.6 | |||||||||
| Provision for obsolete finished goods and raw materials | (12.3) | (13.3) | |||||||||
| Total | $ | 350.3 | $ | 337.8 | |||||||
5. Restructuring Expenses
Restructuring expenses consists of the following:
| Restructuring Expenses | ||||||||||||||||||||||||||||||||
| Three Months Ended 31 December | Nine Months Ended 31 December | |||||||||||||||||||||||||||||||
| (Millions of US dollars) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||||
| Equipment write offs, including disposal costs | $ | — | $ | — | $ | 31.1 | $ | — | ||||||||||||||||||||||||
| Reclassification of foreign currency translation adjustments | — | — | 8.3 | — | ||||||||||||||||||||||||||||
| Contract termination costs | — | — | 4.6 | — | ||||||||||||||||||||||||||||
| Accounts receivable reserves | — | — | 3.4 | — | ||||||||||||||||||||||||||||
| Other exit costs | — | — | 9.9 | — | ||||||||||||||||||||||||||||
| Asia Pacific Fiber Cement segment | — | — | 57.3 | — | ||||||||||||||||||||||||||||
| General Corporate | — | — | — | 20.1 | ||||||||||||||||||||||||||||
| Total | $ | — | $ | — | $ | 57.3 | $ | 20.1 | ||||||||||||||||||||||||
F-11
James Hardie Industries plc
Notes to Condensed Consolidated Financial Statements (continued)
Asia Pacific Fiber Cement segment
For the nine months ending 31 December 2024, the Company recorded US$57.3 million of exit costs related to its decision to shut down its manufacturing and wind-down commercial operations in the Philippines. The net assets remaining in the Philippines primarily consists of land and buildings, which the Company is preparing to sell.
General Corporate
For the nine months ending 31 December 2023, the Company recorded impairment charges based on the strategic decision to cancel the Truganina greenfield site. The site is classified as held for-sale and the estimated fair value of US$52.6 million at that time was derived primarily from market comparables using a third-party appraisal and are considered Level 3 inputs under ASC 820.
6. Debt
The Company’s debt obligations are as follows:
| 31 December | 31 March | ||||||||||
| (Millions of US dollars) | 2024 | 2024 | |||||||||
| Unsecured debt: | |||||||||||
3.625% Senior notes due 2026 (€400.0 million) | $ | 416.2 | $ | 431.0 | |||||||
5.000% Senior notes due 2028 | 400.0 | 400.0 | |||||||||
| Term Loan | 292.5 | 298.1 | |||||||||
| Unamortized debt issuance costs | (5.0) | (6.5) | |||||||||
| Total debt | 1,103.7 | 1,122.6 | |||||||||
| Less current portion | (7.5) | (7.5) | |||||||||
| Total Long-term debt | $ | 1,096.2 | $ | 1,115.1 | |||||||
| Weighted average interest rate of total debt | 4.9 | % | 5.1 | % | |||||||
| Weighted average term of available total debt | 2.4 years | 3.2 years | |||||||||
| Fair value of Senior unsecured notes (Level 1) | $ | 803.1 | $ | 811.5 | |||||||
As of 31 December 2024, the Company had a total borrowing base capacity under its unsecured revolving credit facility of US$600.0 million with outstanding borrowings of nil, and US$5.9 million of issued but undrawn letters of credit and bank guarantees. These letters of credit and bank guarantees relate to various operational matters including insurance, performance bonds and other items, leaving the Company with US$594.1 million of available borrowing capacity under the revolving credit facility.
As of 31 December 2024, the Company was in compliance with all of its covenants contained in the senior unsecured notes, term loan and the unsecured revolving credit facility agreement.
F-12
James Hardie Industries plc
Notes to Condensed Consolidated Financial Statements (continued)
7. Asbestos
The following is a detailed rollforward of the Net Unfunded Amended and Restated Final Funding Agreement ("AFFA") liability, net of tax, for the nine months ended 31 December 2024.
| (Millions of US dollars) | Asbestos Liability | Insurance Receivables | Restricted Cash and Investments | Other Assets and Liabilities | Net Unfunded AFFA Liability | Deferred Tax Assets | Income Tax Payable | Net Unfunded AFFA Liability, net of tax | |||||||||||||||||||||||||||||||||||||||
Opening Balance - 31 March 2024 | $ | (989.7) | $ | 31.5 | $ | 224.2 | $ | 1.5 | $ | (732.5) | $ | 294.0 | $ | 39.5 | $ | (399.0) | |||||||||||||||||||||||||||||||
| Asbestos claims paid | 86.9 | — | (86.9) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Payment received in accordance with AFFA | — | — | 49.6 | — | 49.6 | — | — | 49.6 | |||||||||||||||||||||||||||||||||||||||
| AICF claims-handling costs incurred (paid) | 0.8 | — | (0.8) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| AICF operating costs paid - non claims-handling | — | — | (2.3) | — | (2.3) | — | — | (2.3) | |||||||||||||||||||||||||||||||||||||||
| Insurance recoveries | — | (3.0) | 3.0 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Movement in income taxes | — | — | — | — | — | (29.6) | (10.4) | (40.0) | |||||||||||||||||||||||||||||||||||||||
| Other movements | — | — | 9.2 | (0.7) | 8.5 | (1.9) | — | 6.6 | |||||||||||||||||||||||||||||||||||||||
| Effect of foreign exchange | 39.4 | (1.3) | (8.5) | — | 29.6 | (11.3) | (1.3) | 17.0 | |||||||||||||||||||||||||||||||||||||||
Closing Balance - 31 December 2024 | $ | (862.6) | $ | 27.2 | $ | 187.5 | $ | 0.8 | $ | (647.1) | $ | 251.2 | $ | 27.8 | $ | (368.1) | |||||||||||||||||||||||||||||||
Claims Data
The following table shows the activity related to the numbers of open claims, new claims and closed claims during each of the past five years and the average settlement per settled claim and case closed:
| Nine Months | |||||||||||||||||||||||
| Ended | For the Years Ended 31 March | ||||||||||||||||||||||
| 31 December 2024 | 2024 | 2023 | 2022 | 2021 | 2020 | ||||||||||||||||||
| Number of open claims at beginning of period | 379 | 359 | 365 | 360 | 393 | 332 | |||||||||||||||||
| Number of new claims | |||||||||||||||||||||||
| Direct claims | 329 | 410 | 403 | 411 | 392 | 449 | |||||||||||||||||
| Cross claims | 169 | 154 | 152 | 144 | 153 | 208 | |||||||||||||||||
| Number of closed claims | 455 | 544 | 561 | 550 | 578 | 596 | |||||||||||||||||
| Number of open claims at end of period | 422 | 379 | 359 | 365 | 360 | 393 | |||||||||||||||||
| Average settlement amount per settled claim | A$325,000 | A$289,000 | A$303,000 | A$314,000 | A$248,000 | A$277,000 | |||||||||||||||||
Average settlement amount per case closed 1 | A$285,000 | A$262,000 | A$271,000 | A$282,000 | A$225,000 | A$245,000 | |||||||||||||||||
| Average settlement amount per settled claim | US$215,000 | US$190,000 | US$208,000 | US$232,000 | US$178,000 | US$189,000 | |||||||||||||||||
Average settlement amount per case closed 1 | US$188,000 | US$172,000 | US$186,000 | US$208,000 | US$162,000 | US$167,000 | |||||||||||||||||
1 The average settlement amount per case closed includes nil settlements. | |||||||||||||||||||||||
F-13
James Hardie Industries plc
Notes to Condensed Consolidated Financial Statements (continued)
Under the terms of the AFFA, the Company has rights of access to actuarial information produced for AICF by the actuary appointed by AICF, which is currently KPMG. The Company’s disclosures with respect to claims statistics are subject to it obtaining such information, however, the AFFA does not provide the Company an express right to audit or otherwise require independent verification of such information or the methodologies to be adopted by the approved actuary. As such, the Company relies on the accuracy and completeness of the information provided by AICF to the approved actuary and the resulting information and analysis of the approved actuary when making disclosures with respect to claims statistics.
AICF Funding
During fiscal year 2025, the Company will contribute A$149.6 million to AICF, excluding interest, in quarterly installments. Total payments of A$112.2 million have been made through 2 January 2025.
For the nine months ended 31 December 2024, the Company did not provide financial or other support to AICF that it was not previously contractually required to provide.
Restricted Investments
AICF invests its excess cash in time deposits, which are classified as held to maturity investments and the carrying value materially approximates the fair value for each investment. The following table represents the investments outstanding as of 31 December 2024:
| Date Invested | Maturity Date | Interest Rate | A$ Millions | |||||||||||||||||
| October 2024 | 17 October 2025 | 4.94% | 70.0 | |||||||||||||||||
| July 2024 | 24 July 2025 | 5.25% | 60.0 | |||||||||||||||||
| April 2024 | 14 April 2025 | 5.12% | 36.0 | |||||||||||||||||
| April 2024 | 7 April 2025 | 5.08% | 54.0 | |||||||||||||||||
| January 2024 | 24 January 2025 | 5.20% | 60.0 | |||||||||||||||||
8. Commitments and Contingencies
Legal Matters
The Company is involved from time to time in various legal proceedings and administrative actions related to the normal conduct of its business, including general liability claims, putative class action lawsuits and litigation concerning its products.
Although it is impossible to predict the outcome of any pending legal proceeding, management believes that such proceedings and actions should not, individually or in the aggregate, have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows, except as described in these condensed consolidated financial statements.
New Zealand Weathertightness Claims
Since fiscal year 2002, the Company’s New Zealand subsidiaries have been joined in a number of weathertightness claims in New Zealand that relate to residential buildings (single dwellings and apartment complexes) and a small number of non-residential buildings, primarily constructed from 1998 to 2004. The claims often involve multiple parties and allege that losses were incurred due to excessive moisture penetration of the buildings’ structures. The claims typically include allegations of poor building
F-14
James Hardie Industries plc
Notes to Condensed Consolidated Financial Statements (continued)
design, inadequate certification of plans, inadequate construction review and compliance certification and deficient work by sub-contractors.
Historically, the Company’s New Zealand subsidiaries have been joined to these claims as one of several co-defendants, including local government entities responsible for enforcing building codes and practices, resulting in the Company’s New Zealand subsidiaries becoming liable for only a portion of each claim. In addition, the Company’s New Zealand subsidiaries have had access to third-party recoveries to defray a portion of the costs incurred in resolving such claims.
There remains only one material outstanding New Zealand Weathertightness Claim, Cridge, et al. (Case Nos. CIV-2015-485-594 and CIV-2015-485-773), In the High Court of New Zealand, Wellington Registry (hereinafter the “Cridge litigation”), which was filed in 2015 on behalf of multiple plaintiffs against the Company and/or its subsidiaries as the sole defendants, which alleges that the New Zealand subsidiaries’ products were inherently defective. The Company has substantial factual and legal defenses to the claim and has defended, and continues defending, the claim vigorously.
From August to December 2020, the trial of phase one of the Cridge litigation was held in Wellington, New Zealand solely to determine whether the Company’s New Zealand subsidiaries had a duty to the plaintiffs and breached that duty. In August 2021, the Wellington High Court issued its decision finding in favor of the Company on all claims (the “Cridge Decision”). In September 2021, plaintiffs filed a notice of appeal of the trial court’s decision, and subsequently, in September 2024, the appellate court issued its decision, dismissing the plaintiffs’ appeal in its entirety. In October 2024, plaintiffs filed for leave to appeal with the New Zealand Supreme Court, and the Company awaits this Court’s decision on plaintiffs’ request to further appeal. As of 31 December 2024, the Company has not recorded a reserve related to the Cridge litigation as the chance of loss remains not probable following the Cridge Decision and dismissal of the appeal. An adverse judgement on the Cridge matter could have a material adverse impact on our consolidated financial position, results of operations or cash flows.
Australia Class Action Securities Claim
On 8 May 2023, a group proceeding (class action) was filed in The Supreme Court of Victoria, Australia by Raeken Pty Ltd against James Hardie Industries plc on behalf of persons who purchased certain James Hardie equity securities from 7 February 2022, through 7 November 2022. The litigation is being funded by a litigation funder in Australia, CASL Funder Pty Ltd. The proceeding includes allegations that James Hardie breached relevant provisions of the Corporations Act 2001 (Cth) and the Australian and Securities Investment Act 2001 (Cth), including with respect to certain forward-looking statements James Hardie made about forecasted financial performance measures during the period specified above. The Company believes the challenged statements were proper and is defending the matter vigorously. As of 31 December 2024, the Company has not recorded a reserve related to this matter as the chance of loss is not probable and the amount of loss, if any, cannot be reasonably estimated.
Australian Tax Office (“ATO”) Audit
In February 2024, the ATO issued a transfer pricing position paper for income years starting 1 April 2010 through 31 March 2019, setting out the ATO’s view that certain profits related to arrangements with the Company’s technology holding company based in Ireland should be allocated to Australian subsidiaries of the Company and taxed in Australia. The Company believes its transfer pricing arrangements are compliant with the applicable tax legislation. As of 31 December 2024, the matter is ongoing and the Company has not recorded a reserve as it believes its tax position is more likely than not to be sustained. If the Company is ultimately unsuccessful in disputing the ATO’s position, the ATO has calculated the additional amount of tax payable to be approximately A$110 million, excluding any consequential adjustments, interest charges or penalties the ATO may impose.
F-15
James Hardie Industries plc
Notes to Condensed Consolidated Financial Statements (continued)
Environmental
The operations of the Company, like those of other companies engaged in similar businesses, are subject to a number of laws and regulations on air, soil and water quality, waste handling and disposal. The Company’s policy is to accrue for environmental costs when it is determined that it is probable that an obligation exists and the amount can be reasonably estimated.
9. Income Taxes
Income taxes payable represents taxes currently payable which are computed at statutory income tax rates applicable to taxable income derived in each jurisdiction in which the Company conducts business. During the nine months ended 31 December 2024, the Company paid taxes, net of refunds, of US$98.3 million.
Income tax expense differs from the statutory rate primarily due to the Company’s mix of pre-tax income by jurisdiction and foreign taxes on domestic income.
Deferred income taxes include net operating loss carry-forwards. At 31 December 2024, the Company had tax loss carry-forwards in Australia, New Zealand, Europe and the US of approximately US$77.9 million that are available to offset future taxable income in the respective jurisdiction. The Company establishes a valuation allowance against a deferred tax asset if it is more likely than not that some portion or all of the deferred tax asset will not be realized.
The Australian tax loss carry-forwards primarily result from current and prior year tax deductions for contributions to AICF. James Hardie 117 Pty Limited, the performing subsidiary under the AFFA, is able to claim a tax deduction for its contributions to AICF over a five-year period commencing in the year the contribution is incurred. At 31 December 2024, the Company recognized a tax deduction of US$98.6 million (A$149.2 million) for the current year relating to total contributions to AICF of US$702.4 million (A$994.7 million) incurred in tax years 2021 through 2025.
10. Stock-Based Compensation
Total stock-based compensation expense consists of the following:
| Three Months Ended 31 December | Nine Months Ended 31 December | ||||||||||||||||||||||||||||
| (Millions of US dollars) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||||
| Liability Awards | $ | (0.4) | $ | 6.2 | $ | 3.0 | $ | 12.1 | |||||||||||||||||||||
| Equity Awards | 5.4 | 8.2 | 17.7 | 20.5 | |||||||||||||||||||||||||
| Total stock-based compensation expense | $ | 5.0 | $ | 14.4 | $ | 20.7 | $ | 32.6 | |||||||||||||||||||||
As of 31 December 2024, the unrecorded future stock-based compensation expense related to outstanding equity awards was US$45.1 million and will be recognized over an estimated weighted average amortization period of 2.0 years.
11. Capital Management
On 13 November 2024, the board of directors approved and authorized a new share buyback plan, for an aggregate amount up to US$300 million through 31 October 2025.
F-16
James Hardie Industries plc
Notes to Condensed Consolidated Financial Statements (continued)
12. Segment Information
The Company reports its operating segment information in the format that the operating segment information is available to and evaluated by the Chief Operating Decision Maker. The North America Fiber Cement segment manufactures fiber cement interior linings, exterior siding products and related accessories in the United States; these products are sold in the United States and Canada. The Asia Pacific Fiber Cement segment includes fiber cement products manufactured in Australia and the Philippines (through August 2024), and sold in Australia, New Zealand and the Philippines (through December 2024). The Europe Building Products segment includes fiber gypsum product manufactured in Europe, and fiber cement product manufactured in the United States that is sold in Europe. The Research and Development segment represents the cost incurred by the research and development centers. General Corporate primarily consist of Asbestos adjustments, officer and employee compensation and related benefits, professional and legal fees, administrative costs and rental expense on the Company’s corporate offices. The Company does not report Interest, net for each segment as the segments are not held directly accountable for interest.
Operating Segments
The following is the Company’s operating segment information:
| Net Sales | ||||||||||||||||||||||||||||||||
| Three Months Ended 31 December | Nine Months Ended 31 December | |||||||||||||||||||||||||||||||
| (Millions of US dollars) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||||
| North America Fiber Cement | $ | 719.3 | $ | 727.0 | $ | 2,144.4 | $ | 2,156.2 | ||||||||||||||||||||||||
| Asia Pacific Fiber Cement | 118.1 | 133.8 | 401.8 | 421.3 | ||||||||||||||||||||||||||||
| Europe Building Products | 115.9 | 117.5 | 359.8 | 353.9 | ||||||||||||||||||||||||||||
| Total | $ | 953.3 | $ | 978.3 | $ | 2,906.0 | $ | 2,931.4 | ||||||||||||||||||||||||
| Operating Income | ||||||||||||||||||||||||||||||||
| Three Months Ended 31 December | Nine Months Ended 31 December | |||||||||||||||||||||||||||||||
| (Millions of US dollars) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||||
| North America Fiber Cement | $ | 209.3 | $ | 237.8 | $ | 638.5 | $ | 688.1 | ||||||||||||||||||||||||
| Asia Pacific Fiber Cement | 34.8 | 36.7 | 68.0 | 127.6 | ||||||||||||||||||||||||||||
| Europe Building Products | 3.6 | 7.6 | 24.7 | 31.9 | ||||||||||||||||||||||||||||
| Research and Development | (9.8) | (8.0) | (28.6) | (25.4) | ||||||||||||||||||||||||||||
| Segments total | 237.9 | 274.1 | 702.6 | 822.2 | ||||||||||||||||||||||||||||
| General Corporate | (31.8) | (48.0) | (108.8) | (138.8) | ||||||||||||||||||||||||||||
| Total | $ | 206.1 | $ | 226.1 | $ | 593.8 | $ | 683.4 | ||||||||||||||||||||||||
F-17
James Hardie Industries plc
Notes to Condensed Consolidated Financial Statements (continued)
| Depreciation and Amortization | ||||||||||||||||||||||||||||||||
| Three Months Ended 31 December | Nine Months Ended 31 December | |||||||||||||||||||||||||||||||
| (Millions of US dollars) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||||
| North America Fiber Cement | $ | 41.2 | $ | 33.5 | $ | 115.5 | $ | 99.6 | ||||||||||||||||||||||||
| Asia Pacific Fiber Cement | 4.9 | 4.2 | 14.4 | 12.5 | ||||||||||||||||||||||||||||
| Europe Building Products | 8.3 | 7.6 | 23.9 | 21.5 | ||||||||||||||||||||||||||||
| Research and Development | 0.5 | 0.5 | 1.9 | 1.5 | ||||||||||||||||||||||||||||
| General Corporate | 0.2 | 0.5 | 1.1 | 1.6 | ||||||||||||||||||||||||||||
| Total | $ | 55.1 | $ | 46.3 | $ | 156.8 | $ | 136.7 | ||||||||||||||||||||||||
| Research and Development Expenses | ||||||||||||||||||||||||||||||||
| Three Months Ended 31 December | Nine Months Ended 31 December | |||||||||||||||||||||||||||||||
| (Millions of US dollars) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||||
| North America Fiber Cement | $ | 1.8 | $ | 2.1 | $ | 7.1 | $ | 5.9 | ||||||||||||||||||||||||
| Asia Pacific Fiber Cement | 0.4 | 0.4 | 1.0 | 1.0 | ||||||||||||||||||||||||||||
| Europe Building Products | 0.7 | 0.8 | 1.8 | 2.3 | ||||||||||||||||||||||||||||
| Research and Development | 8.6 | 7.4 | 26.2 | 23.3 | ||||||||||||||||||||||||||||
| Total | $ | 11.5 | $ | 10.7 | $ | 36.1 | $ | 32.5 | ||||||||||||||||||||||||
13. Accumulated Other Comprehensive Loss
Accumulated other comprehensive loss consists of the following at 31 December 2024:
| (Millions of US dollars) | Cash Flow Hedges | Pension Actuarial Gain | Foreign Currency Translation Adjustments | Total | ||||||||||||||||||||||
Balance at 31 March 2024 | $ | 0.2 | $ | 1.3 | $ | (69.8) | $ | (68.3) | ||||||||||||||||||
| Other comprehensive loss | (0.1) | — | (9.7) | (9.8) | ||||||||||||||||||||||
Reclassification to Restructuring expenses | — | — | 8.3 | 8.3 | ||||||||||||||||||||||
Reclassification to Selling, general and administrative expenses | — | — | 0.2 | 0.2 | ||||||||||||||||||||||
Balance at 31 December 2024 | $ | 0.1 | $ | 1.3 | $ | (71.0) | $ | (69.6) | ||||||||||||||||||
F-18
James Hardie Industries plc 1st Floor, Block A, One Park Place, Upper Hatch Street, Dublin 2, D02 FD79, Ireland T: +353 (0) 1 411 6924 F: +353 (0) 1 479 1128 James Hardie Industries plc is a limited liability company incorporated in Ireland with its registered office at 1st Floor, Block A, One Park Place, Upper Hatch Street, Dublin 2, D02 FD79, Ireland. Directors: Anne Lloyd (Chairperson, USA), Peter-John Davis (Aus), Persio Lisboa (USA), Renee Peterson (USA), John Pfeifer (USA), Rada Rodriguez (Sweden), Suzanne B. Rowland (USA), Nigel Stein (UK), Harold Wiens (USA). Chief Executive Officer and Director: Aaron Erter (USA) Company number: 485719 ARBN: 097 829 895 7 February 2025 The Manager Company Announcements Office Australian Securities Exchange Limited 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam Substantial Holding Notice As required under ASX Listing Rule 3.17.3 please see attached copy of the substantial holding notice received by James Hardie on 6 February 2025. Regards Aoife Rockett Company Secretary This announcement has been authorised for release by the Company Secretary, Ms Aoife Rockett. Exhibit 99.6
James Hardie Industries PLC Group Company Secretary Second Floor, Europa House, Harcourt Centre Harcourt Street Dublin 2, Ireland 5 February 2025 Dear Sir/Madam, Re: Disclosure of Holding below 3% Threshold Superannuation and Investments HoldCo Pty Ltd on behalf of its subsidiaries: Avanteos Investments Limited and Colonial First State Investments Limited, have a requirement to make a subsequent disclosure under Section 1048/1050 of the Companies Act 2014. These entities have an aggregated interest in James Hardie Industries PLC, Chess Depository Interests of 2.978% ordinary share capital, as at 3rd February 2025. This is based upon 12,798,346 shares held and a total of 429,812,735 voting rights on issue. Superannuation and Investments HoldCo Pty Ltd ACN 644 660 882 Level 15, 400 George Street, Sydney, NSW, 2000, Australia
Page 2 The holdings dissection between entities within Superannuation and Investments HoldCo Pty Ltd before notification obligation on 2 February 2025: Entity Registered Holder Holdings of CDI's Relevant Interest % Avanteos Investments Limited ACN 096 259 979 Colonial First State Investments Limited 64,835 0.015% Avanteos Investments Limited ACN 096 259 979 Citicorp Nominees Pty Limited 14,158 0.003% Colonial First State Investments Limited (Note 1) ACN 002 348 352 Citicorp Nominees Pty Limited (Australia) 7,684,400 1.788% Colonial First State Investments Limited (Note 1) ACN 002 348 352 UBS Nominees Pty Ltd 46,197 0.011% Colonial First State Investments Limited (Note 1) ACN 002 348 352 Citigroup Prime Broker 19,670 0.005% Colonial First State Investments Limited (Note 1) ACN 002 348 352 Citibank N A Hong Kong 5,102,650 1.187% Colonial First State Investments Limited ACN 002 348 352 Colonial First State Investments Limited 55,756 0.013% Colonial First State Investments Limited ACN 002 348 352 Citicorp Nominees Pty Limited 19,482 0.005% 13,007,148 3.026% The holdings dissection between entities within Superannuation and Investments HoldCo Pty Ltd on notification obligation on 3 February 2025: Entity Registered Holder Holdings of CDI's Relevant Interest % Avanteos Investments Limited ACN 096 259 979 Colonial First State Investments Limited 64,835 0.015% Avanteos Investments Limited ACN 096 259 979 Citicorp Nominees Pty Limited 15,449 0.004% Colonial First State Investments Limited (Note 1) ACN 002 348 352 Citibank N A Hong Kong 5,099,691 1.186% Colonial First State Investments Limited (Note 1) ACN 002 348 352 Citicorp Nominees Pty Limited (Australia) 7,477,167 1.740% Colonial First State Investments Limited (Note 1) ACN 002 348 352 UBS Nominees Pty Ltd 46,197 0.011% Colonial First State Investments Limited (Note 1) ACN 002 348 352 Citigroup Prime Broker 19,670 0.005% Colonial First State Investments Limited ACN 002 348 352 Colonial First State Investments Limited 55,756 0.013% Colonial First State Investments Limited ACN 002 348 352 Citicorp Nominees Pty Limited 19,581 0.005% TOTALS 12,798,346 2.978%
Page 3 Transactions on the notification obligation date: Date of Change Registered Company Class Transaction Type Number of Securities Cash Consideration Friday, 31 January 2025 Citicorp Nominees Pty Limited (Australia) Chess Depository Interests Sale 50,000 2,730,460.00 Friday, 31 January 2025 Citibank N A Hong Kong Chess Depository Interests Sale 501 27,359.21 Friday, 31 January 2025 Citicorp Nominees Pty Limited (Australia) Chess Depository Interests Sale 2,832 154,712.16 Friday, 31 January 2025 Citicorp Nominees Pty Limited Chess Depository Interests Purchase 545 29,666.77 Friday, 31 January 2025 Citicorp Nominees Pty Limited Chess Depository Interests Purchase 16 872.44 Friday, 31 January 2025 Citicorp Nominees Pty Limited Chess Depository Interests Purchase 71 3,871.43 Friday, 31 January 2025 Citibank N A Hong Kong Chess Depository Interests Sale 539 29,448.48 Friday, 31 January 2025 Citibank N A Hong Kong Chess Depository Interests Sale 539 29,434.36 Friday, 31 January 2025 Citibank N A Hong Kong Chess Depository Interests Sale 501 27,372.34 Friday, 31 January 2025 Citicorp Nominees Pty Limited (Australia) Chess Depository Interests Sale 4,401 240,335.09 Friday, 31 January 2025 Citicorp Nominees Pty Limited Chess Depository Interests Purchase 746 40,686.84 Friday, 31 January 2025 Citicorp Nominees Pty Limited Chess Depository Interests Purchase 12 654.33 Thursday, 30 January 2025 Citibank N A Hong Kong Chess Depository Interests Sale 879 47,061.66 Thursday, 30 January 2025 Citicorp Nominees Pty Limited (Australia) Chess Depository Interests Sale 150,000 8,046,195.00 Thank you for your attention in this matter. Yours faithfully, Fatima Sie Senior Manager Middle Office and Reporting
James Hardie Industries plc 1st Floor, Block A, One Park Place, Upper Hatch Street, Dublin 2, D02 FD79, Ireland T: +353 (0) 1 411 6924 F: +353 (0) 1 479 1128 James Hardie Industries plc is a limited liability company incorporated in Ireland with its registered office at 1st Floor, Block A, One Park Place, Upper Hatch Street, Dublin 2, D02 FD79, Ireland. Directors: Anne Lloyd (Chairperson, USA), Peter-John Davis (Aus), Persio Lisboa (USA), Renee Peterson (USA), John Pfeifer (USA), Rada Rodriguez (Sweden), Suzanne B. Rowland (USA), Nigel Stein (UK), Harold Wiens (USA). Chief Executive Officer and Director: Aaron Erter (USA) Company number: 485719 ARBN: 097 829 895 7 February 2025 The Manager Company Announcements Office Australian Securities Exchange Limited 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam Substantial Holding Notice As required under ASX Listing Rule 3.17.3 please see attached copy of the substantial holding notice received by James Hardie on 6 February 2025. Regards Aoife Rockett Company Secretary This announcement has been authorised for release by the Company Secretary, Ms Aoife Rockett. Exhibit 99.7
