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Highlights

  • JHX focuses on safe workplaces, diversity, responsible sourcing, and resilient housing as part of its sustainable practices
  • In 1QFY2025, the company recorded a 4% YoY increase in net sales, reaching USD 991.9 million, with a 1% rise in EBIT.
  • During the latest quarter, JHX maintained USD 1 billion in liquidity; 15th consecutive quarter with leverage at or below 1.0x.

James Hardie Industries PLC (ASX:JHX) manufactures fiber cement and fiber gypsum building products which are utilised in commercial and residential construction. The company is committed to integrating sustainable practices into its operations, driving community impact and enhancing product resilience, as demonstrated through its sustainability report released on 19 August 2024.

As part of its commitment to ESG goals, JHX focused on creating safe workplaces, responsible sourcing, increased diversity in management, low-CO2 product innovations and support for resilient housing via Habitat Strong initiatives.

Key financial metrics for the recent quarter

In the first quarter of the financial year 2025 (1QFY25), the company recorded a 4% YoY increase in its net sales to USD 991.9 million and 1% YoY increase in EBIT to USD 235.40 million.

During the reported period, JHX’s liquidity stood at USD 1 billion despite allocating USD 130 million to capital expenditures and continuing their share repurchase program. The period also recorded a leverage ratio of 0.66x, representing the 15th consecutive quarter with leverage at or below 1.0x, reflecting operational flexibility and financial discipline.

Outlook

The company expects 2QFY25 to remain challenging as the North American market for exterior products is expected to fall in low to mid-digits for the year. Despite these economic factors, JHX showed optimism in achieving its FY25 guidance, which includes EBIT margins if 29% to 31%, North American volumes of 2.95-3.15 billion standard feet and adjusted net income of USD 630 – 700 million.

In FY25, capital expenditures are anticipated to range between USD 500 – 550 million.

The company focuses on growth investments and efficiency to maintain market leadership and boost performance as conditions improve.

Share performance of JHX

JHX shares closed 0.48% higher at AUD 50.24 each on 12 November 2024. In the past one year, the share price has increased by 9.72%, while in the past three months, it has recorded a rise of 3.87%.

52-week high of JHX is AUD 63.11, recorded on 8 March 2024, and 52-week low is AUD 45.67, recorded on 10 July 2024.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 12 November 2024. The reference data in this report has been partly sourced from EODHD/Others.