James Hardie (ASX:JHX) Announces Q3 FY25 Results
Financial Performance
James Hardie Industries plc (ASX:JHX) reported its third-quarter results for the fiscal year 2025, showing a net sales decrease of 3% to $953 million. GAAP operating income stood at $206 million with an operating margin of 21.6%. Adjusted EBITDA declined by 7% to $262 million, maintaining an adjusted EBITDA margin of 27.5%. Adjusted net income was $154 million, down 15% from the previous year.
Segment Results
In North America, fiber cement net sales were $719.3 million, a slight decrease of 1%. The segment achieved an EBIT margin of 29.1%, driven by higher production costs and a 2% increase in average net sales price. The Asia Pacific region saw a 12% decline in net sales to $118.1 million, with an EBIT margin improvement to 29.3% following strategic adjustments. Europe Building Products reported a 1% decrease in net sales to $115.9 million, maintaining a stable EBIT margin of 3.1%.
Executive Comments
CEO Aaron Erter stated, “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.” CFO Rachel Wilson added, “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.”
Market Outlook and Guidance
James Hardie reaffirmed its full-year FY25 guidance, expecting North America volumes of at least 2.95 billion standard feet and an EBIT margin of at least 29.3%. The company also outlined its plans for FY26, focusing on growth and margin expansion across all regions.
Capital Allocation
The company completed a share repurchase of 4.5 million shares for $150 million during the nine months of FY25 and approved a new repurchase program of up to $300 million through October 2025.
Motley Fool contributor Matt Burgess has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
This article was generated using GPT-4o mini, a Large Language Model (LLM), to generate summaries of investing news. While AI is generating the content, we know better than to blindly trust our future robot overlords, and every article is edited and fact-checked by an editor holding the appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content of everything published by The Capital Club.