James Hardie Industries (JHX) Q1 2025 earnings summary

Executive summary

• Delivered a solid start to FY25, surpassing bottom-line expectations and achieving all Q1 guidance metrics, with adjusted net income of $178M and record adjusted EBITDA of $286M, reflecting a 2% year-over-year increase.

• Outperformed the market despite challenging conditions, maintaining operational focus, profitable share gain, and delivering value to customers.

• Continued investment in capacity expansion, innovation, and strategic initiatives to support long-term growth.

• Reaffirmed full-year FY25 guidance, supported by strong cash generation and disciplined capital allocation.

Financial highlights

• Net sales grew 4% year-over-year to $991.9M, with record Q1 adjusted EBITDA of $286M, up 2%.

• Adjusted net income reached $178M, modestly ahead of expectations; adjusted diluted EPS was $0.41, up 4%.

• North America net sales grew 5% to $729.3M, with EBIT margin at 31.2% and EBITDA margin at 36.1%.

• Asia-Pacific sales declined 2% in AUD, with a 9% volume drop offset by a 7% price increase; EBITDA margin at 34%.

• Europe achieved record net sales, up 8% in euros, with 7% higher volumes and EBITDA margin at 15.5%.

Outlook and guidance

• FY25 full-year guidance reaffirmed: North American volumes 2.95–3.15B sq ft (flat ±3% vs FY24), EBIT margin 29–31%, adjusted net income $630M–$700M, capex $500M–$550M.

• Q2 FY25 North American volumes expected at 705–735M sq ft, EBIT margin 27.5–29.5%, adjusted net income $135M–$155M.

• North America volume expected to be down low- to mid-single digits, with market outperformance of +4%.