James Hardie Industries (JHX) Q2 2025 earnings summary

Executive summary

• Delivered H1 adjusted EBITDA over $500 million, with Q2 adjusted net income of $157 million, exceeding expectations despite challenging demand and raw material headwinds.

• Net sales for H1 FY25 were $1,952.7 million, flat year-over-year; Q2 net sales were $960.8 million, down 4% year-over-year.

• Maintained strong profitability and outperformed end markets in North America, Asia-Pacific, and Europe.

• Continued investment in capacity, contractor base, and high-value products to position for recovery and long-term growth.

• No dividend was declared or paid for the reporting period.

Financial highlights

• Q2 adjusted EBITDA was $263 million (27.4% margin), down 8% year-over-year; H1 adjusted EBITDA over $500 million.

• Q2 net sales were $961 million, down 4% from the prior year; North America Q2 net sales declined 5% (7% volume decline), EBIT margin 29%, EBITDA margin 34.5%.

• Asia-Pacific Q2 net sales up 1% in USD, EBIT margin 33.3% (excluding restructuring), EBITDA margin 36.5%.

• Europe Q2 net sales flat in USD, EBIT margin 7.5%, EBITDA margin 14.5%.

• Completed $300 million share repurchase program and authorized a new $300 million program.

Outlook and guidance

• Reaffirmed North America volume guidance for FY25 at least 2.95 billion standard feet, with Q3 volumes expected to rise sequentially.

• Raised low end of North America EBIT margin guidance to 29.3% and adjusted net income guidance to $635 million.

• FY25 capital expenditures guidance reduced to $420–$440 million.

• FY26 planning assumes double-digit North America net sales growth and 500bps+ EBITDA margin expansion.

• No recovery assumed in H2 market conditions; focus remains on outperforming markets.