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James Hardie Industries PLC (JHX)
NYSE:JHX
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James Hardie Industries PLC
(NYSE:JHX)
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Select Model
Rating:72Outperform
Price Target:
$31.00
▲(60.87% Upside)
James Hardie scores highly due to its solid financial performance and strategic initiatives highlighted in the earnings call, despite challenging market conditions. The technical analysis presents mixed signals, and the valuation appears relatively high. The positive outlook and strategic partnerships provide resilience against macroeconomic headwinds.
Positive Factors
Strategic Growth Initiatives
The partnership with AZEK aims for significant revenue and cost synergies, enhancing long-term growth potential and market positioning.
Product Innovation
Continued product innovation strengthens market offerings and supports sustained demand, contributing to competitive advantage.
Cash Flow Generation
Strong cash flow generation enhances financial flexibility, supporting strategic investments and resilience against economic fluctuations.
Negative Factors
Revenue Decline
Declining revenue growth may indicate challenges in market demand or competitive pressures, impacting long-term growth prospects.
Raw Material Cost Pressures
Rising raw material costs can compress margins and reduce profitability, challenging cost management strategies over time.
Market Challenges in Europe
Persistent challenges in European markets may hinder overall growth and require strategic adjustments to capture recovery opportunities.
James Hardie Industries PLC (JHX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.02B
Dividend YieldN/A
Average Volume (3M)9.93M
Price to Earnings (P/E)25.1
Beta (1Y)1.46
Revenue Growth-1.59%
EPS Growth-15.58%
CountryUS
Employees5,679
SectorBasic Materials
Sector Strength58
IndustryConstruction Materials
Share Statistics
EPS (TTM)0.29
Shares Outstanding578,601,800
10 Day Avg. Volume5,728,096
30 Day Avg. Volume9,930,722
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.08
Enterprise Value/Revenue3.07
Enterprise Value/Gross Profit7.91
Enterprise Value/Ebitda14.10
Forecast
1Y Price Target
$27.09Price Target Upside40.58% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
James Hardie Industries PLC Business Overview & Revenue Model
Company DescriptionJames Hardie Industries plc (JHX) is a global leader in the production of high-performance fiber cement and fiber gypsum building solutions. With a strong presence in the United States, Australia, New Zealand, and the Philippines, the company specializes in manufacturing durable and versatile building materials used primarily in exterior home siding and interior applications. James Hardie is renowned for its innovative products that offer resistance to fire, termites, and moisture, catering to both residential and commercial construction markets.
How the Company Makes MoneyJames Hardie makes money primarily through the manufacturing and sale of fiber cement and fiber gypsum products. The company's revenue model is centered around its portfolio of building materials, which includes products like HardiePlank siding, HardiePanel vertical siding, and HardieBacker cement board. These products are distributed through a network of distributors and retailers, reaching builders, contractors, and homeowners. A significant portion of the company's revenue comes from the residential construction sector, particularly in the United States, which is its largest market. Additionally, James Hardie benefits from strategic partnerships with builders and developers, leveraging its brand reputation and product innovation to maintain a competitive edge. The company's focus on sustainability and product performance also plays a crucial role in driving demand and, consequently, revenue.
James Hardie Industries PLC Earnings Call Summary
Earnings Call Date:Aug 19, 2025
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed sentiment. While the integration with AZEK and cost synergies are positive developments, the company faces significant challenges in terms of declining sales in North America, market uncertainties in APAC and Europe, and an unfavorable demand outlook for the Siding & Trim segment. The continuation of inventory destocking by customers further complicates the outlook.Q1-2026 Updates
Positive Updates
Successful Integration of AZEK
The integration of James Hardie and AZEK has been completed, creating a leading provider of exterior home and outdoor living solutions. The combined company is expected to capture multiple opportunities for material conversion with a total addressable market more than twice the size of legacy James Hardie.
Strong Performance in AZEK Segment
AZEK's Deck, Rail & Accessories segment saw mid-single-digit sell-through growth, driven by continued expansion in the channel and contribution from innovative new products. The segment exceeded previously provided guidance with impressive margin performance.
Cost Synergy Realization
The company has already actioned cost synergies accounting for more than 50% of its run rate target for general and administrative cost savings. This is expected to drive approximately $20 million of P&L benefit in FY '26.
Negative Updates
Decline in North American Sales
North America net sales declined 12% in the quarter, driven by lower volumes, partially offset by an increase in average net sales price. Lower volumes, unfavorable cost absorption, and persistent raw material inflation were the primary drivers of the decrease in adjusted EBITDA margin by 400 basis points.
Challenging Market Conditions in APAC and Europe
Market conditions in APAC and Europe continue to be challenging due to macroeconomic uncertainty and consumer affordability concerns. Asia Pacific net sales declined 10% and Europe reported flat performance in high-value product sales for Q1.
Weak Demand Outlook for Siding & Trim Segment
The company expects FY '26 net sales for the Siding & Trim segment to decline high single digits due to homeowner affordability pressures and uncertain macro conditions.
Inventory Destocking Impact
The company experienced significant inventory destocking in Q1, with expectations of continued inventory reduction by customers in Q2 and Q3, contributing to a lower volume outlook.
Company Guidance
During the call, James Hardie provided guidance for Fiscal Year 2026, projecting a total adjusted EBITDA of $1.05 billion to $1.15 billion, which includes a contribution of approximately $250 million to $265 million from the recently acquired AZEK. The company anticipates Siding & Trim segment net sales ranging from $2.675 billion to $2.85 billion, with a forecasted high single-digit decline in market demand. For the new Deck, Rail & Accessories segment, net sales are expected to reach $775 million to $800 million over the next nine months, with low single-digit growth in sell-through. Additionally, James Hardie aims for free cash flow of at least $200 million and plans to maintain a disciplined approach to capital expenditures, targeting 6% to 7% of sales over the long term. The company remains committed to reducing net leverage to at or below 2x within two years post-acquisition.James Hardie Industries PLC Financial Statement Overview
Summary
James Hardie shows strong financial performance with solid profitability and efficient use of equity. Despite a slight revenue decline, the company maintains good operational margins and strong cash flow conversion. The balanced approach to leverage supports long-term stability.Income Statement
James Hardie demonstrates solid profitability with a strong gross profit margin of 38.8% and a respectable net profit margin of 10.9% for 2025. However, revenue growth has been slightly negative at -1.5% from the previous year, indicating a slight decline in top-line growth. The EBIT margin of 16.9% and EBITDA margin of 23.3% suggest effective cost control and operational efficiency.78
Positive
Balance Sheet
The balance sheet shows a stable financial position with a debt-to-equity ratio of 0.56, reflecting moderate leverage. The return on equity (ROE) is strong at 19.6%, suggesting effective use of shareholders’ equity to generate profits. The equity ratio stands at 41.3%, indicating a healthy proportion of equity financing.75
Positive
Cash Flow
Operating cash flow is robust, covering net income well with a ratio of 1.89. Free cash flow has decreased by -18.1% from the previous year, but remains positive, ensuring some flexibility. The free cash flow to net income ratio of 0.90 indicates sound cash conversion from operations.70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.88B | 3.88B | 3.94B | 3.78B | 3.61B | 2.91B |
| Gross Profit | 1.50B | 1.50B | 1.59B | 1.31B | 1.31B | 1.05B |
| EBITDA | 844.73M | 902.60M | 976.20M | 933.10M | 844.20M | 594.80M |
| Net Income | 424.00M | 424.00M | 510.20M | 512.00M | 459.10M | 262.80M |
Balance Sheet | ||||||
| Total Assets | 5.23B | 5.23B | 4.91B | 4.48B | 4.24B | 4.09B |
| Cash, Cash Equivalents and Short-Term Investments | 562.70M | 562.70M | 365.00M | 113.00M | 125.00M | 208.50M |
| Total Debt | 1.21B | 1.21B | 1.20B | 1.14B | 955.50M | 922.60M |
| Total Liabilities | 3.07B | 3.07B | 3.05B | 2.87B | 2.91B | 3.03B |
| Stockholders Equity | 2.16B | 2.16B | 1.86B | 1.61B | 1.33B | 1.06B |
Cash Flow | ||||||
| Free Cash Flow | 374.35M | 380.60M | 464.90M | 16.30M | 499.40M | 676.20M |
| Operating Cash Flow | 802.80M | 802.80M | 914.20M | 607.60M | 757.20M | 786.90M |
| Investing Cash Flow | -446.70M | -446.70M | -470.50M | -660.10M | -348.20M | -120.40M |
| Financing Cash Flow | -165.90M | -165.90M | -210.10M | -25.40M | -449.60M | -540.20M |
James Hardie Industries PLC Technical Analysis
Negative
19.27
Price Trends
24.06
Negative
26.44
Positive
30.51
Negative
Market Momentum
-1.39
Negative
33.27
Neutral
15.44
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JHX, the sentiment is Negative. The current price of 19.27 is below the 20-day moving average (MA) of 19.86, below the 50-day MA of 24.06, and below the 200-day MA of 30.51, indicating a bearish trend. The MACD of -1.39 indicates Negative momentum. The RSI at 33.27 is Neutral, neither overbought nor oversold. The STOCH value of 15.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | 76.07B | 23.64 | 15.46% | 1.29% | 3.85% | -0.93% | |
76 Outperform | 39.35B | 41.63 | 11.31% | 0.65% | 0.19% | 4.33% | |
76 Outperform | 7.50B | 17.04 | 30.36% | 0.43% | 0.88% | -4.17% | |
76 Outperform | 37.30B | 34.27 | 11.76% | 0.52% | 1.02% | -45.31% | |
73 Outperform | 13.67B | 8.83 | 7.71% | 0.95% | -9.62% | 795.20% | |
72 Outperform | $11.02B | 25.12 | 15.80% | ― | -1.59% | -15.58% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
Performance Comparison
JHX
James Hardie Industries PLC
19.27
-9.08
-32.03%
CX
Cemex SAB
9.07
2.73
43.06%
EXP
Eagle Materials
231.23
-55.43
-19.34%
MLM
Martin Marietta Materials
618.57
76.29
14.07%
VMC
Vulcan Materials
297.79
47.32
18.89%
CRH
CRH plc
113.09
22.46
24.78%
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.