James Hardie Industries (JHX) investor relations material

Strategic Vision, Integration, and Growth Priorities

• Completed integration of two industry leaders, creating a unique platform with #1 and #2 brand positions in siding, trim, decking, and railing, and doubling the addressable market from $10B to $23B.

• Five-pillar strategy focuses on accelerating material conversion, channel expansion, product innovation, brand leadership, and enhancing the homeowner and pro journey.

• Divested European business for $980M to sharpen focus on North America and Australia/New Zealand, with proceeds used for debt reduction and share buybacks.

• Achieved $125M in cost synergies a year ahead of schedule and are on track for at least $500M in commercial/revenue synergies by FY30.

• Unified brand architecture and in-house marketing drive material conversion and growth, with a focus on localized strategies and digital engagement.

Financial Guidance and Capital Allocation

• FY27 guidance (ex-Europe): Net sales $4.99–$5.13B, Adjusted EBITDA $1.45–$1.53B, Free Cash Flow $600M+.

• CapEx expected at 6–8% of sales, with advanced manufacturing yielding ~$1B in CapEx deferral potential.

• Free cash flow conversion expected to exceed 40%, supporting deleveraging (target net leverage <2x by Q2 FY28) and opportunistic share repurchases.

• Growth algorithm and compounder model highlight sustained market outperformance and long-term returns.

• Guidance excludes European operations due to divestiture.

Operational Excellence and Competitive Advantages

• Localized, flexible manufacturing network with 26 sites, 90% of plants within one day of customers, and 75% of raw materials sourced locally.

• Proprietary manufacturing technology and Hardie Operating System (HOS) drive continuous improvement, cost savings, and rapid product innovation.

• Largest vertically integrated PVC recycler in North America, supporting sustainability and cost advantages.

• Existing capacity supports growth without large capital investment; advanced manufacturing increases throughput and efficiency.

• Safety performance exceeds industry benchmarks, reinforcing operational reliability.