James Hardie Industries PLC (JHX)
NYSE:JHX
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James Hardie Industries PLC
(NYSE:JHX)
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Rating:54Neutral
Price Target:
$18.50
▼(-0.43% Downside)
Action:ReiteratedDate:03/28/26
The score is held back primarily by weakening profitability, lower returns and softer free-cash-flow conversion, alongside bearish technical signals. Offsetting this, the latest earnings call was constructive with raised guidance and improving integration/synergy execution, but valuation remains expensive given the current margin and leverage profile.
Positive Factors
Acquisition integration & synergy delivery
Achieving $125M of cost and $125M of commercial synergies is a durable earnings lever: sustained synergy capture can structurally lower manufacturing and SG&A per unit, improving margins, cash flow and financing flexibility over multiple years as integration tailwinds convert into recurring savings.
Negative Factors
Sharp profitability deterioration
A collapse in net margin and ROE erodes sustainable earnings power and reduces internally generated capital. Persistently lower margins weaken free cash flow conversion, constrain reinvestment or deleveraging plans, and imply the company must execute operational fixes to restore durable returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Acquisition integration & synergy delivery
Achieving $125M of cost and $125M of commercial synergies is a durable earnings lever: sustained synergy capture can structurally lower manufacturing and SG&A per unit, improving margins, cash flow and financing flexibility over multiple years as integration tailwinds convert into recurring savings.
Read all positive factors
James Hardie Industries PLC (JHX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.84B
Dividend YieldN/A
Average Volume (3M)6.55M
Price to Earnings (P/E)43.8
Beta (1Y)1.32
Revenue Growth-1.59%
EPS Growth-15.58%
CountryUS
Employees5,679
SectorBasic Materials
Sector Strength58
IndustryConstruction Materials
Share Statistics
EPS (TTM)0.24
Shares Outstanding583,240,000
10 Day Avg. Volume7,979,080
30 Day Avg. Volume6,547,404
Financial Highlights & Ratios
PEG Ratio-1.54
Price to Book (P/B)4.70
Price to Sales (P/S)2.62
P/FCF Ratio26.67
Enterprise Value/Market Cap1.44
Enterprise Value/Revenue3.55
Enterprise Value/Gross Profit9.90
Enterprise Value/Ebitda19.61
Forecast
1Y Price Target
$31.85Price Target Upside71.42% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)1.27
Revenue Forecast (FY)$5.57B
James Hardie Industries PLC 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 fiber cement and fiber gypsum building products to the construction and home improvement markets. Its main revenue stream is product sales to distributors, building product dealers, a...
James Hardie Industries PLC Earnings Call Summary
Earnings Call Date:Feb 10, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:May 26, 2026
Earnings Call Sentiment Positive
The call presents a constructive operational and financial picture driven by the AZEK combination: consolidated revenue grew 30% (with organic sales +1%), adjusted EBITDA and margins beat expectations in several areas, early commercial and cost synergies have been realized and guidance was raised for key segments. However, core legacy fiber cement volumes remain pressured (organic Siding & Trim down and single-family volumes down high-single digits), new construction softness in key regions and elevated pro forma leverage (~3x) are notable near-term risks. Management is taking decisive actions—plant consolidations (saving ~$25M annually), salesforce alignment and targeted marketing—to drive material conversion and margin recovery, and they express confidence in hitting $125M in both cost and commercial synergies by exiting FY'27. Weighing the positive execution on integration, margin recovery, and segment outperformance against the ongoing softness in the siding core end market and elevated leverage, the overall tone is cautiously optimistic.Positive Updates
Strong Consolidated Revenue and EBITDA Beat
Total net sales grew 30% year-over-year to $1.24B (including $275M from AZEK); organic sales +1%. Adjusted EBITDA was $330M with a 26.6% adjusted EBITDA margin, and adjusted net income was $142M (adjusted diluted EPS $0.24).
Negative Updates
Siding & Trim Organic Declines and Volume Weakness
Legacy James Hardie North America fiber cement organic net sales declined 2% in the quarter. Single-family exteriors volumes were down high single digits, interiors down double digits; full-year organic net sales implied decline ~6% at midpoint of guidance.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Consolidated Revenue and EBITDA Beat
Total net sales grew 30% year-over-year to $1.24B (including $275M from AZEK); organic sales +1%. Adjusted EBITDA was $330M with a 26.6% adjusted EBITDA margin, and adjusted net income was $142M (adjusted diluted EPS $0.24).
Read all positive updates
Company Guidance
The company raised FY‑26 guidance across key metrics: Siding & Trim net sales $2.953–$2.998B with adjusted EBITDA $939–$962M (midpoint implying ~6% organic net‑sales decline and a 31.9% adjusted‑EBITDA margin), Deck, Rail & Accessories net sales $787–$800M with adjusted EBITDA $219–$224M, and total company adjusted EBITDA $1.232–$1.263B. Q3 results included total net sales of $1.24B (+30%, incl. $275M AZEK), organic sales +1%, adjusted EBITDA $330M (26.6% margin), Siding & Trim EBITDA $269M (34.1% margin), and DR&A EBITDA $49M (25.1% margin). Financials also reflect adjusted net income $142M and adj. diluted EPS $0.24 in Q3, adjusted net interest ~$68M, a Q3 adjusted tax rate of 17.3% (FY guide ~19%), weighted average diluted shares ~583M, capex ~$400M for FY‑26 (incl. $75M AZEK) and long‑term NA capex of 6–7% of sales, at least $200M free cash flow for FY‑26, net debt $4.3B and pro‑forma net leverage ~3x at the midpoint with a commitment to get below 2x within two years. Management reiterated cost actions to deliver ~$25M of annual manufacturing savings starting FY‑27, exceeded FY‑26 cost‑synergy goals and remains confident in achieving $125M of cost synergies and $125M of annualized commercial‑synergy run‑rate exiting FY‑27.James Hardie Industries PLC Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
55
Neutral
Cash Flow
49
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 | 562.20M | 562.70M | 365.00M | 113.00M | 125.00M | 208.50M |
| Total Debt | 4.97B | 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 | 205.88M | 380.60M | 464.90M | 16.30M | 499.40M | 676.20M |
| Operating Cash Flow | 600.06M | 802.80M | 914.20M | 607.60M | 757.20M | 786.90M |
| Investing Cash Flow | -4.24B | -446.70M | -470.50M | -660.10M | -348.20M | -120.40M |
| Financing Cash Flow | 3.46B | -165.90M | -210.10M | -25.40M | -449.60M | -540.20M |
James Hardie Industries PLC Technical Analysis
Neutral
18.58
Price Trends
19.88
Negative
Market Momentum
-1.05
Positive
39.55
Neutral
45.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JHX, the sentiment is Neutral. The current price of 18.58 is below the 20-day moving average (MA) of 19.16, below the 50-day MA of 19.88, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of -1.05 indicates Positive momentum. The RSI at 39.55 is Neutral, neither overbought nor oversold. The STOCH value of 45.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JHX.
James Hardie Industries PLC Risk Analysis
James Hardie Industries PLC disclosed 1 risk factors in its most recent earnings report. James Hardie Industries PLC reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
James Hardie Industries PLC Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $36.55B | 34.81 | 12.79% | 0.67% | 6.54% | 32.48% | |
73 Outperform | $17.63B | 1.73 | 10.45% | 0.74% | -6.34% | 210.97% | |
72 Outperform | $36.02B | 33.02 | 11.90% | 0.51% | 1.99% | -41.08% | |
70 Outperform | $5.91B | 16.19 | 28.78% | 0.47% | 1.50% | -4.44% | |
70 Outperform | $69.92B | 10.17 | 15.21% | 1.17% | 4.28% | 0.39% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
54 Neutral | $10.84B | 43.75 | 2.78% | ― | -1.59% | -15.58% |
* Basic Materials Sector Average
JHX
James Hardie Industries PLC
18.58
-9.77
-34.46%
CX
Cemex SAB
11.23
6.17
121.89%
EXP
Eagle Materials
187.96
-23.14
-10.96%
MLM
Martin Marietta Materials
597.18
139.81
30.57%
VMC
Vulcan Materials
279.88
52.96
23.34%
CRH
CRH plc
104.63
24.55
30.66%
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.