Core Viewpoint - Investors in the Building Products - Miscellaneous sector should consider Compagnie de Saint-Gobain - Unsponsored ADR (CODYY) and James Hardie (JHX) for potential value opportunities, with CODYY currently presenting a better value proposition [1]. Group 1: Zacks Rank and Earnings Estimates - CODYY has a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision activity, while JHX has a Zacks Rank of 4 (Sell), suggesting a less favorable outlook [3]. - The Zacks Rank emphasizes earnings estimates and revisions, which are critical for identifying value stocks [2]. Group 2: Valuation Metrics - CODYY has a forward P/E ratio of 14.35, compared to JHX's forward P/E of 17.40, indicating that CODYY may be undervalued relative to JHX [5]. - CODYY's PEG ratio is 2.50, while JHX's PEG ratio is significantly higher at 5.58, suggesting that CODYY offers better value when considering expected earnings growth [5]. - CODYY's P/B ratio is 1.90, which is much lower than JHX's P/B of 4.96, further supporting the notion that CODYY is undervalued [6]. Group 3: Overall Value Assessment - Based on the stronger estimate revision activity and more attractive valuation metrics, CODYY is deemed the superior option for value investors compared to JHX [7]. - CODYY holds a Value grade of B, while JHX has a Value grade of D, reinforcing the conclusion that CODYY presents a better investment opportunity [6].

Core Insights - The article compares Compagnie de Saint-Gobain - Unsponsored ADR (CODYY) and James Hardie (JHX) to determine which stock is more undervalued for investors [1] Valuation Metrics - CODYY has a forward P/E ratio of 14.60, while JHX has a forward P/E of 22.18 [5] - CODYY's PEG ratio is 2.54, compared to JHX's PEG ratio of 5.85, indicating CODYY's expected earnings growth is more favorable [5] - CODYY has a P/B ratio of 1.94, while JHX has a P/B of 6.33, suggesting CODYY is more attractively valued relative to its book value [6] Analyst Outlook - CODYY has a Zacks Rank of 2 (Buy), indicating a more positive analyst outlook, while JHX has a Zacks Rank of 4 (Sell) [3] - The stronger estimate revision activity for CODYY suggests a more favorable investment opportunity compared to JHX [7] Value Grades - CODYY has earned a Value grade of B, while JHX has received a Value grade of F, highlighting the relative undervaluation of CODYY [6]

Core Insights - The TimberHue™ Collection by James Hardie features a curated palette of eight colors designed to complement various architectural styles, emphasizing the aesthetic appeal of natural wood while ensuring durability [1][3] - The collection is engineered to withstand harsh weather conditions and is made from fiber cement, which resists moisture, humidity, pests, and fire [2][6] - The launch of the TimberHue™ Collection is set for spring 2026, offering design flexibility for homeowners to create cohesive or unique exterior styles [3][5] Product Features - The TimberHue™ Collection includes colors such as Ash, Chestnut, Ebony Forest, and more, designed to evoke warmth and charm [1] - The ColorPlus® Technology finish provides superior color consistency, adhesion, and fade resistance, ensuring long-lasting beauty with minimal maintenance [4] - Hardie® products are noncombustible and comply with ASTM E136, enhancing fire safety when combined with other fire mitigation measures [6][7] Company Overview - James Hardie is the North American leader in fiber cement exterior design solutions, known for its long-lasting beauty and low maintenance [7] - The company employs over 3,700 individuals in North America and operates with a commitment to an inclusive culture and Zero Harm [7]

Group 1 - James Hardie Industries plc is highlighted as a significant player in the building materials sector, yet remains relatively unknown to many American investors [2] - The company is part of a portfolio managed by The Insiders Forum, which focuses on small and mid-cap stocks with recent insider purchases [2] - The goal of The Insiders Forum is to outperform the Russell 2000 benchmark over time, with a model portfolio that has more than doubled the benchmark's returns since its launch [1][2]

Financial Data and Key Metrics Changes - Total net sales for Q3 2025 were $953 million, a 3% decrease compared to the previous year's record [36] - Adjusted EBITDA for the quarter was $262 million, with an adjusted EBITDA margin of 27.5%, reflecting a 120 basis point decline year-over-year [36] - Adjusted net income for the quarter was $154 million, with adjusted diluted EPS at $0.36 per share [37] Business Line Data and Key Metrics Changes - North America experienced a 1% decline in net sales, primarily due to a 3% decrease in volume, partially offset by a 2% increase in average net sales price [40] - In Asia Pacific, total segment net sales declined 12% in US dollars, primarily due to a 28% decrease in volumes, although ASP rose by 20% [44] - Europe saw a 1% decline in net sales, with fiber cement products growing over 20% and high-value products achieving double-digit growth [48] Market Data and Key Metrics Changes - North America shipped 744 million standard feet, achieving a 29.1% EBIT margin, despite a challenging demand environment [13] - The Asia Pacific segment's EBIT margin was 29.3%, with EBITDA declining slightly due to the absence of contributions from the Philippines [45] - European EBIT margin was 3.1%, with underlying margin expansion driven primarily by growth in high-value products [50] Company Strategy and Development Direction - The company is focused on a homeowner-centric strategy, emphasizing safety, sustainability, and continuous productivity improvements through the Hardie Operating System [19][60] - Investments are being made across the value chain to capture material conversion opportunities and enhance competitive positioning [14][15] - The company aims to achieve double-digit growth in high-value products, particularly in challenging markets like Europe [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to recover demand as affordability conditions improve, despite current high interest rates [11] - The company is well-positioned to sustain profitability and outperformance in its markets, with a strong focus on customer partnerships and contractor engagement [12][66] - Future guidance indicates expectations for stable demand trends and reaffirmation of operating guidance for the fiscal year [55][59] Other Important Information - The company generated $657 million in operating cash flow year-to-date, with $333 million invested in capital expenditures [51] - A new share repurchase program was approved, allowing for the repurchase of up to $300 million in shares through October 2025 [54] - The company is planning for continued investments in growth and capacity expansion projects in North America and Europe [52] Q&A Session Summary Question: Concerns about balancing investment in growth versus maintaining margins - Management emphasized the importance of investing in customer relationships and the Hardie Operating System to maintain strong margins while pursuing growth initiatives [72][76] Question: Clarification on share buyback approach - Management reiterated that share buybacks are a priority after funding organic growth and maintaining a strong balance sheet, with no specific timing commitments [79] Question: Progress on ColorPlus product line - Management noted that ColorPlus is performing well, with improvements in remodeling sentiment and targeted marketing efforts yielding positive results [86][87] Question: Raw material inflation and its impact on margins - Management identified pulp and cement as significant contributors to raw material inflation, with expectations that HOS savings will help offset these costs [109][113] Question: Volume growth expectations in FY '26 - Management expressed confidence in achieving volume growth despite potential market challenges, citing strong partnerships and market outperformance [122][130]

Third Quarter FY25 Earnings Presentation TUESDAY, FEBRUARY 18th WEDNESDAY, FEBRUARY 19th CHICAGO DUBLIN SYDNEY | | | Cautionary Note and Use of Non-GAAP Measures This Earnings Presentation contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. James Hardie Industries plc (the "Company") may from time to time make forward-looking statements in its periodic reports filed with or furnished to the Securities and Exchange Commission on Forms 20-F and 6-K, ...

Core Insights - The article compares Owens Corning (OC) and James Hardie (JHX) to determine which stock is more attractive to value investors [1] Valuation Metrics - Owens Corning has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while James Hardie has a Zacks Rank of 3 (Hold) [3] - OC has a forward P/E ratio of 11.25, significantly lower than JHX's forward P/E of 23.81 [5] - The PEG ratio for OC is 1.95, compared to JHX's PEG ratio of 4.79, suggesting OC is more reasonably priced relative to its expected earnings growth [5] - OC's P/B ratio is 2.73, while JHX has a P/B ratio of 7.24, further indicating OC's relative undervaluation [6] - Based on these metrics, OC has a Value grade of A, whereas JHX has a Value grade of D [6] Earnings Outlook - OC is noted for its improving earnings outlook, which enhances its attractiveness in the Zacks Rank model [7]

Core Insights - James Hardie Building Products Inc. has entered into a three-year exclusive agreement with M/I Homes, making it the sole supplier of siding and trim products for the home builder [1][2] - This agreement solidifies a decade-long partnership, ensuring that Hardie® products will be standard in new M/I Homes where hard siding is used [2][3] Company Overview - James Hardie is a leader in North American exterior home building products, specializing in fiber cement solutions that offer durability, low maintenance, and aesthetic appeal [6] - The company employs over 3,700 individuals in North America and is committed to an inclusive culture and Zero Harm principles [6] Product Features - Hardie® siding and trim products are noncombustible, pest-resistant, and designed to withstand extreme weather conditions, providing enhanced protection and durability for homeowners [3][4] - The products come in a wide range of colors and styles, catering to various design preferences from traditional to ultra-modern [3][4] Strategic Vision - James Hardie's vision is to inspire innovative design and construction practices in communities, aiming to deliver high-quality, climate-resilient homes through this collaboration with M/I Homes [4]

Core Insights - James Hardie Building Products Inc. has launched the James Hardie™ ALLIANCE, a program aimed at providing business support to residential contractors, enhancing their connection with homeowners and improving their operational efficiency [1][2]. Group 1: Program Overview - The James Hardie™ ALLIANCE offers exclusive access to resources such as training, marketing support, and homeowner referrals to help contractors succeed [1][2]. - The program is designed to assist contractors in achieving their business goals, whether it be expanding their business or streamlining operations [2]. Group 2: Member Benefits - Members can access a redesigned digital portal featuring personalized accounts, comprehensive training courses, and industry-leading marketing resources [2]. - Additional benefits include exclusive discounts on tools and services, as well as the opportunity to earn Hardie™ Rewards Points for business resources [2]. Group 3: Tiered Benefits - Contractors advancing to the top three tiers of the program receive added benefits such as a tier logo for credibility, direct homeowner referrals, and enhanced marketing support [3]. - A directory listing on the James Hardie™ ALLIANCE contractor locator is also provided for increased visibility to homeowners [3]. Group 4: Homeowner Focus - The program is designed with homeowners in mind, facilitating easier connections with trusted contractors within the network [4]. Group 5: Company Commitment - James Hardie emphasizes its dedication to supporting homeowners in their re-side experience and providing high-quality products [5]. - The investment in the James Hardie™ ALLIANCE represents a significant step in advancing the company's mission [5].

Group 1 - The building materials sector has faced significant challenges over the past year due to economic uncertainty and rising interest rates [1] - The overall performance of the industry has been impacted, reflecting broader economic conditions [1] Group 2 - The article does not provide specific financial data or performance metrics related to individual companies within the building materials sector [1] - There are no mentions of particular investment opportunities or risks associated with specific companies in the sector [1]