James Hardie (AU:JHX)
ASX:JHX
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James Hardie
(Sydney:JHX)
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Rating:54Neutral
Price Target:
AU$31.00
▲(10.56% Upside)
Action:ReiteratedDate:03/26/26
The score is primarily held back by weaker TTM profitability/cash conversion and increased leverage, alongside bearish technicals with the stock trading below major moving averages. These are partially offset by a constructive earnings call with raised EBITDA guidance and synergy execution progress, though valuation remains rich at a ~43 P/E.
Positive Factors
Acquisition synergy prospects
Realizing $250M of combined annual synergies materially improves EBITDA and cash generation capacity over multiple years. These recurring cost and commercial gains strengthen margins, support deleveraging, and provide durable uplift to free cash flow once fully executed, aiding long-term financial flexibility.
Negative Factors
Profitability and cash conversion deterioration
Sharp margin compression and a ~31% drop in free cash flow reduce the company's ability to self-fund capex, service debt, and accelerate deleveraging. Lower cash conversion increases reliance on execution of synergies and sustained margin recovery to restore durable shareholder returns and financial flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Acquisition synergy prospects
Realizing $250M of combined annual synergies materially improves EBITDA and cash generation capacity over multiple years. These recurring cost and commercial gains strengthen margins, support deleveraging, and provide durable uplift to free cash flow once fully executed, aiding long-term financial flexibility.
Read all positive factors
James Hardie (JHX) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$17.96B
Dividend YieldN/A
Average Volume (3M)6.99M
Price to Earnings (P/E)43.4
Beta (1Y)1.46
Revenue Growth14.94%
EPS Growth-72.51%
CountryAU
Employees5,679
SectorBasic Materials
Sector Strength58
IndustryConstruction Materials
Share Statistics
EPS (TTM)0.34
Shares Outstanding430,436,040
10 Day Avg. Volume4,605,424
30 Day Avg. Volume6,992,535
Financial Highlights & Ratios
PEG Ratio-1.66
Price to Book (P/B)4.78
Price to Sales (P/S)2.66
P/FCF Ratio27.13
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$40.61Price Target Upside44.83% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)1.26
Revenue Forecast (FY)AU$5.57B
James Hardie Business Overview & Revenue Model
Company Description
James Hardie Industries plc, together with its subsidiaries, manufactures and sells fiber cement, fiber gypsum, and cement bonded building products for interior and exterior building construction applications primarily in the United States, Austra...
How the Company Makes Money
James Hardie makes money primarily by manufacturing and selling building materials—especially fiber cement exterior products and interior linings—through a mix of distribution channels and direct-to-customer relationships. Revenue is generated fro...
James Hardie Earnings Call Summary
Earnings Call Date:Feb 10, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:May 26, 2026
Earnings Call Sentiment Neutral
The call conveyed a mixed but constructive picture: strong reported results driven by the AZEK acquisition (total net sales +30%, adjusted EBITDA $330M) and clear progress on cost and commercial synergies, TimberTech outperformance, and targeted actions (plant optimization, salesforce reorganization, product/installation innovation). Offsetting this were continued organic softness in core fiber cement volumes (single-family and interiors declines), regionally weak new construction, modest input inflation, integration-related cash/seasonal timing headwinds, and elevated pro-forma leverage (~3x). Management expressed confidence in achieving $125M cost and $125M revenue synergies and returning to organic growth in FY27, but near-term execution, market demand normalization, and deleveraging remain material risks.Positive Updates
Combined Revenue and EBITDA Strength
Total net sales grew 30% year-over-year to $1,240,000,000 (including $275M of acquired AZEK sales); organic sales +1%. Adjusted EBITDA was $330,000,000 with a 26.6% adjusted EBITDA margin.
Negative Updates
Organic Fiber Cement Weakness
Legacy James Hardie North America fiber cement organic net sales declined 2% in the quarter (driven by lower volumes). Management's FY26 Siding & Trim midpoint implies a full-year organic net sales decline of approximately 6%.
Read all updates
Q3-2026 Updates
Positive
Negative
Combined Revenue and EBITDA Strength
Total net sales grew 30% year-over-year to $1,240,000,000 (including $275M of acquired AZEK sales); organic sales +1%. Adjusted EBITDA was $330,000,000 with a 26.6% adjusted EBITDA margin.
Read all positive updates
Company Guidance
On guidance, James Hardie raised Siding & Trim net sales to $2,953m–$2,998m and adjusted EBITDA to $939m–$962m (midpoint implying roughly a 6% organic net‑sales decline and an adjusted EBITDA margin near 31.9%), and increased Deck, Rail & Accessories net sales to $787m–$800m with adjusted EBITDA of $219m–$224m, driving a total‑company FY26 adjusted EBITDA guide of $1,232m–$1,263m; the company kept FY26 CapEx at ≈$400m (including $75m for AZEK) and long‑term North America CapEx at 6–7% of sales, reiterated at least $200m of free cash flow for the year, reported pro‑forma net leverage of ~3x at the midpoint with a target to get below 2x within two years, expects to realize $125m of annualized cost synergies and $125m of annualized commercial revenue synergies (exit‑FY27 run rate), called out incremental annualized plant‑closure savings of ~$25m beginning in FY27, and noted a slightly lower full‑year adjusted tax rate around 19% and adjusted net interest of $68m.James Hardie Financial Statement Overview
Summary
Income Statement
60
Neutral
Balance Sheet
56
Neutral
Cash Flow
58
Neutral
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.40B | 3.88B | 3.94B | 3.78B | 3.61B | 2.91B |
| Gross Profit | 1.58B | 1.50B | 1.59B | 1.31B | 1.31B | 1.05B |
| EBITDA | 797.30M | 902.60M | 976.20M | 933.10M | 844.20M | 594.80M |
| Net Income | 119.10M | 424.00M | 510.20M | 512.00M | 459.10M | 262.80M |
Balance Sheet | ||||||
| Total Assets | 13.80B | 5.23B | 4.91B | 4.48B | 4.24B | 4.09B |
| Cash, Cash Equivalents and Short-Term Investments | 344.20M | 562.70M | 365.00M | 113.00M | 125.00M | 208.50M |
| Total Debt | 4.86B | 1.21B | 1.20B | 1.14B | 955.50M | 922.60M |
| Total Liabilities | 7.41B | 3.07B | 3.05B | 2.87B | 2.91B | 3.03B |
| Stockholders Equity | 6.40B | 2.16B | 1.86B | 1.61B | 1.33B | 1.06B |
Cash Flow | ||||||
| Free Cash Flow | 206.59M | 380.60M | 464.90M | 7.80M | 497.50M | 666.70M |
| Operating Cash Flow | 601.50M | 802.80M | 914.20M | 607.60M | 757.20M | 786.90M |
| Investing Cash Flow | -4.27B | -446.70M | -470.50M | -660.10M | -348.20M | -120.40M |
| Financing Cash Flow | 3.49B | -165.90M | -210.10M | -25.40M | -449.60M | -540.20M |
James Hardie Technical Analysis
Negative
28.04
Price Trends
30.96
Negative
31.24
Negative
32.81
Negative
Market Momentum
-0.47
Negative
44.25
Neutral
46.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:JHX, the sentiment is Negative. The current price of 28.04 is above the 20-day moving average (MA) of 27.99, below the 50-day MA of 30.96, and below the 200-day MA of 32.81, indicating a neutral trend. The MACD of -0.47 indicates Negative momentum. The RSI at 44.25 is Neutral, neither overbought nor oversold. The STOCH value of 46.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:JHX.
James Hardie Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | AU$233.48M | 7.02 | 24.98% | 7.62% | 3.98% | 18.90% | |
65 Neutral | AU$12.90B | 6.75 | 2.76% | 2.48% | 1.24% | -45.43% | |
62 Neutral | AU$874.79M | 8.32 | 17.82% | 0.88% | 3.42% | 54.50% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | AU$739.98M | 33.43 | 6.68% | 0.86% | -1.99% | -39.25% | |
54 Neutral | AU$17.96B | 43.45 | 2.78% | ― | 14.94% | -72.51% | |
43 Neutral | AU$244.55M | 10.41 | 0.27% | ― | ― | 6.76% |
* Basic Materials Sector Average
AU:JHX
James Hardie
30.88
-5.95
-16.16%
AU:BSL
Bluescope Steel
29.46
8.04
37.53%
AU:BIS
Bisalloy Steel Group Ltd
4.86
1.66
51.97%
AU:WGN
Wagners Holding Co. Ltd.
4.38
2.71
162.43%
AU:VSL
Vulcan Steel Ltd.
5.05
-2.16
-29.98%
AU:PLA
Pacific Lime and Cement Limited
0.29
0.06
29.55%
James Hardie Corporate Events
James Hardie Issues 16,159 Unquoted Ordinary Shares Under Existing Arrangements
Apr 23, 2026
James Hardie Industries has notified the market of the issue of 16,159 unquoted ordinary shares, recorded under the ASX security code JHXAM. The new securities were issued on 20 April 2026 as part of previously announced transactions and are not i...
James Hardie Issues 30,670 Unquoted Ordinary Shares Under Existing Arrangements
Apr 16, 2026
James Hardie Industries has notified the market of the issue of 30,670 unquoted ordinary shares under the ASX code JHXAM, with an issue date of 13 April 2026. The new securities form part of previously announced transactions and are not intended t...
James Hardie Seeks ASX Quotation for New Employee Incentive Securities
Apr 7, 2026
James Hardie Industries has applied for quotation on the ASX of 53,099 CHESS Depositary Interests, each representing a 1:1 interest in the company’s securities, with an issue date of April 6, 2026. The new securities were issued under an emp...
James Hardie Issues 1,142 Unquoted Ordinary Shares
Apr 7, 2026
James Hardie Industries has notified the market of the issue of 1,142 unquoted ordinary shares under the ASX code JHXAM, with an issue date of 2 April 2026. The relatively small, unquoted equity issuance appears to relate to previously announced t...
James Hardie Seeks ASX Quotation for New Employee CDI Issue
Apr 7, 2026
James Hardie Industries has applied for quotation on the ASX of 25,200 new CHESS Depositary Interests, each representing a one-for-one interest in the company’s shares. The securities were issued on 2 April 2026 under an employee incentive s...
James Hardie Seeks ASX Quotation for New Employee Incentive Securities
Apr 7, 2026
James Hardie Industries has applied for quotation on the ASX of 14,001 new CHESS Depositary Interests, each representing one underlying security in the company. The newly issued securities were created on April 1, 2026 under an employee incentive ...
James Hardie Reports Stable CDIs with Minor Capital Structure Adjustments
Apr 7, 2026
James Hardie Industries has reported that the number of CHESS Depositary Interests on issue for March 2026 remained unchanged at 430,438,730, maintaining a 1:1 ratio with the underlying quoted securities. This stability in CDIs indicates no new eq...
James Hardie Reports Lapse of 225,024 Restricted Stock Units
Apr 6, 2026
James Hardie Industries has disclosed the lapse of 225,024 restricted stock units, identified under the ASX security code JHXAK, after the conditions attached to these rights were not met or became incapable of being satisfied as of March 31, 2026...
FMR Lifts Stake in James Hardie Above 5% Threshold
Mar 19, 2026
James Hardie Industries has disclosed that investment manager FMR LLC has become a substantial shareholder in the company, after crossing the 5% voting rights threshold on 18 March 2026. FMR’s stake rose to 5.1065% of James Hardie’s vo...
James Hardie Director Increases Shareholding Through Equity Plan Grant
Mar 18, 2026
James Hardie Industries has disclosed a change in the equity holdings of non-executive director Gary Hendrickson following an issuance of ordinary shares. Hendrickson acquired 1,776 ordinary shares on 13 March 2026, lifting his direct holding to 2...
James Hardie CEO Howard Heckes Increases Shareholding Through Equity Plan Grant
Mar 18, 2026
James Hardie Industries has disclosed a change in the shareholding of chief executive and director Howard Heckes following an issue of ordinary shares under the company’s 2020 Non-Executive Director Equity Plan. Heckes acquired 972 ordinary ...
James Hardie Director Increases Shareholding Through Equity Plan
Mar 18, 2026
James Hardie Industries has disclosed a change in director John C. Pfeifer’s shareholding, following the issuance of 571 ordinary shares under the company’s 2020 Non-Executive Director Equity Plan. The transaction, dated 13 March 2026 ...
James Hardie Director Increases Stake Through Equity Plan Grant
Mar 18, 2026
James Hardie Industries has disclosed a change in the shareholding of non-executive director Suzanne B. Rowland, following the issuance of additional ordinary shares under the company’s 2020 Non-Executive Director Equity Plan. Rowland’...
James Hardie Increases Director Nigel Stein’s Equity Stake Under Board Plan
Mar 18, 2026
James Hardie Industries has disclosed a change in director Nigel Stein’s holdings, reflecting the issuance of additional ordinary shares under the company’s 2020 Non-Executive Director Equity Plan. The move modestly increases SteinR...
James Hardie Director Increases Equity Stake via Share Plan
Mar 18, 2026
James Hardie Industries has disclosed a change in the shareholding of non-executive director Persio V. Lisboa, who increased his direct holding through the issue of new ordinary shares. The transaction reflects ongoing participation in the company...
James Hardie Issues New Shares Under Employee Incentive Scheme
Mar 18, 2026
James Hardie Industries has notified the market of the issue of 7,693 ordinary shares under an employee incentive scheme, with the securities not intended to be quoted on the ASX. The new shares, issued on 13 March 2026, represent a small dilution...
James Hardie Names David Hill Chief Accounting Officer to Support Post-Acquisition Integration
Mar 16, 2026
James Hardie Industries has appointed David Hill as its new Chief Accounting Officer, effective March 17, 2026, succeeding David Wisniewski. The company emphasized that the leadership change does not stem from any disagreement over accounting prac...
James Hardie Director Increases Indirect Shareholding via On‑Market Purchase
Mar 12, 2026
James Hardie Industries has disclosed a change in director Renee Peterson’s interests in the company’s securities, reflecting an on‑market purchase of additional ordinary shares. Peterson acquired 24,250 ordinary shares for about...
FMR Lifts Stake in James Hardie Above 4% Threshold
Mar 9, 2026
James Hardie Industries has disclosed a new substantial shareholding after receiving a major holdings notification from U.S.-based investment manager FMR LLC. The filing shows FMR lifted its voting interest in James Hardie from about 3.03% to 4.31...
James Hardie Issues New Restricted Stock Units Under Employee Incentive Plan
Mar 8, 2026
James Hardie Industries has notified the market of the issuance of 4,077 unquoted restricted stock units under its employee incentive scheme. The new securities, which are not yet quoted on the ASX and are subject to transfer restrictions, highlig...
James Hardie Reports No Change in CDIs or Share Base for February 2026
Mar 5, 2026
James Hardie Industries has reported that the number of CHESS Depositary Interests (CDIs) on issue for February 2026 remained unchanged at 430,438,730, maintaining a 1:1 ratio with the underlying quoted securities. The disclosure indicates stabili...
James Hardie Issues Small Tranche of Unquoted Ordinary Shares
Mar 4, 2026
James Hardie Industries has notified the market of the issue of 10,440 unquoted ordinary shares, recorded under the ASX security code JHXAM, with an issue date of 27 February 2026. The new securities form part of a previously announced transaction...
James Hardie Seeks ASX Quotation for New Employee Incentive CDIs
Feb 22, 2026
James Hardie Industries has applied for quotation on the ASX of 2,698 CHESS Depositary Interests (CDIs) on a 1:1 basis with its ordinary shares. The new securities are being issued under an employee incentive scheme and are not subject to transfer...
James Hardie Director Restructures Shareholdings Via Family Trusts
Feb 20, 2026
James Hardie has disclosed a change in the shareholdings of director Gary Hendrickson, detailing movements between his direct holdings and family trusts. The filing shows a significant reallocation of ordinary shares, shifting a large portion from...
James Hardie Lifts Q3 Sales, Beats Synergy Targets as AZEK Integration Advances
Feb 10, 2026
James Hardie has reported third-quarter fiscal 2026 results for the period ended 31 December 2025, posting net sales of $1.2 billion, up 30% year on year, with organic net sales growing 1%. Operating income reached $176 million and adjusted EBITDA...
James Hardie Issues New Restricted Stock Units Under Employee Incentive Plan
Feb 8, 2026
James Hardie Industries has notified the market of the issue of 15,365 restricted stock units under its employee incentive scheme, with the securities not quoted on the ASX until transfer restrictions end. The move underscores the company’s ...
James Hardie Issues 35,378 Unquoted Ordinary Shares Under Existing Arrangements
Feb 8, 2026
James Hardie Industries has notified the market of the issue of 35,378 ordinary shares as unquoted equity securities, effective 2 February 2026. The new securities, recorded under ASX code JHXAM, form part of previously disclosed transactions and ...
James Hardie Sets Date for Q3 FY26 Earnings Release and Investor Call
Jan 27, 2026
James Hardie Industries will release its third-quarter fiscal 2026 financial results after US market close on Tuesday, 10 February, and before the Australian market opens on Wednesday, 11 February, followed by a webcast conference call hosted by C...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.