Investors interested in stocks from the Building Products - Miscellaneous sector have probably already heard of Quanex Building Products (NX) and James Hardie (JHX) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank p ...

Core Insights - The article emphasizes a long-term investment philosophy focused on fundamental analysis, targeting companies with strong competitive advantages and consistent free cash flow growth [1]. Group 1: Investment Philosophy - The investment approach is centered on identifying undervalued stocks with growth potential and avoiding overvalued stocks [1]. - The analyst believes in the power of long-term investing over short-term trading tactics, which has proven effective in navigating market complexities [1]. Group 2: Professional Background - The analyst has a background in business and economics, providing a solid foundation for investment analysis [1]. - Currently, the analyst is associated with a local brokerage firm and contributes to Seeking Alpha, aiming to share analytical insights with the investment community [1].

Core Insights - James Hardie Building Products Inc. has entered into a three-year exclusive agreement with Pahlisch Homes to supply Hardie® siding and trim for new home developments in the Pacific Northwest [1][4] - This partnership aims to enhance the quality and aesthetic appeal of homes, aligning with Pahlisch Homes' commitment to long-term community value [2][3] Company Overview - James Hardie is recognized as the 1 siding brand in North America, known for its fiber cement products that offer durability, modern aesthetics, and trusted performance [2][6] - The company emphasizes innovation, quality, and design versatility, which are crucial for meeting evolving market demands in residential construction [4][6] Strategic Partnership - The collaboration with Pahlisch Homes is described as a shared vision for excellence, focusing on delivering homes that reflect the beauty and resilience of the Pacific Northwest [3][4] - Hardie® siding and trim are engineered to be non-combustible, resistant to pests and moisture, and suitable for the region's varied climates, providing homeowners with a reliable exterior solution [3][4] Market Position - The agreement sets a new benchmark for exterior home construction in the Pacific Northwest, with both companies dedicated to quality, style, and performance [4] - James Hardie operates with a diverse workforce of over 3,700 employees in North America, reflecting its commitment to an inclusive company culture [6]

Group 1 - Proactive Investors specializes in providing fast, accessible, and informative business and finance news to a global investment audience [2][3] - The company covers a wide range of sectors including mining, energy, biotech, and emerging technologies, focusing on medium and small-cap markets as well as blue-chip companies [3] - Proactive's news team operates from key financial hubs around the world, including London, New York, Toronto, Vancouver, Sydney, and Perth [2][3] Group 2 - The company emphasizes the use of technology to enhance workflows and improve content production [4] - Proactive employs automation and software tools, including generative AI, while ensuring that all content is edited and authored by humans [5]

Core Insights - The company reported a decline in net sales and adjusted EBITDA for Q4 FY2025, reflecting soft end-market demand and ongoing market challenges [4][5][12] - Management anticipates a mid-single-digit decline in North American market volumes for FY2026, marking a fourth consecutive year of declines in large-ticket repair and remodel activity [9][13][25] - The pending merger with Azek is expected to drive significant revenue and cost synergies, enhancing growth and margin expansion opportunities [11][45][82] Financial Performance - Global net sales for Q4 FY2025 were $972 million, down 3% year-over-year, with adjusted EBITDA of $269 million, a 4% decline [4][5][62] - North America net sales reached $2.9 billion for FY2025, with a 2% revenue decline and a 3% volume decline [5][6][65] - Adjusted net income for Q4 FY2025 was $156 million, with adjusted diluted EPS of $0.36 [5][63] Regional Performance - Asia Pacific net sales declined 17% in US dollars and 13% in Australian dollars during Q4 FY2025, with a 31% decline in volumes attributed to the closure of the Philippines [3][7][69] - Europe achieved record net sales of $135 million in Q4 FY2025, up 5% in USD, driven by strong performance in high-value products [8][71] Cost and Margin Analysis - North America EBIT margin fell to 28.2% in Q4 FY2025, down 350 basis points year-over-year, primarily due to increased depreciation and amortization [6][66] - North America EBITDA margin was 34.4% in Q4 FY2025, down 190 basis points, with full-year EBITDA reaching $1 billion [6][67] - The company faced low double-digit inflation in raw materials, impacting margins, but managed to maintain strong cost control measures [9][63] Strategic Outlook - The company expects low single-digit net sales growth in North America for FY2026, with a focus on maintaining EBITDA margins near 35% [9][74] - Capital expenditures for FY2026 are projected to decline by nearly $100 million to approximately $325 million, supporting free cash flow growth [10][79] - The merger with Azek is anticipated to create a leading growth platform in building products, with expected baseline revenue synergies of $500 million [11][47][82]

[Section 1: Company and Governance Information](index=8&type=section&id=Section%201) [Introduction](index=8&type=section&id=Introduction) James Hardie Industries plc is a global leader in manufacturing fiber cement building solutions and a market leader in fiber gypsum and cement-bonded boards in Europe - The company identifies itself as a world leader in fiber cement manufacturing and a market leader in European fiber gypsum and cement-bonded boards[12](index=12&type=chunk) - Primary geographic markets include the United States, Australia, Europe, and New Zealand[12](index=12&type=chunk) [Information on the Company](index=9&type=section&id=Information%20on%20the%20Company) This section details the company's history, business operations, organizational structure, and physical assets, including the ongoing funding agreement for asbestos-related liabilities [History and Development of the Company](index=9&type=section&id=History%20and%20Development%20of%20the%20Company) Founded in 1888, James Hardie pioneered asbestos-free fiber cement technology and is pursuing a merger with The AZEK Company Inc. while managing historical asbestos liabilities - The company was established in 1888, listed on the ASX in 1951, and pioneered asbestos-free fiber cement technology in the late 1970s[19](index=19&type=chunk) - In March 2025, the company entered into a definitive merger agreement with The AZEK Company Inc., expected to close in the second half of calendar year 2025, subject to shareholder approval and other conditions[20](index=20&type=chunk) - Under the Amended and Restated Final Funding Agreement (AFFA), the company makes annual payments to the Asbestos Injuries Compensation Fund (AICF), with total contributions since inception of approximately **A$2.34 billion** as of March 31, 2025[23](index=23&type=chunk) - Due to the funding arrangement and contractual interests, James Hardie is considered the primary beneficiary of AICF and consolidates it for financial reporting purposes, despite having no legal ownership[24](index=24&type=chunk) [Business Overview](index=10&type=section&id=Business%20Overview) James Hardie is the 1 global producer of fiber cement and a European leader in fiber gypsum, emphasizing product durability, design flexibility, and resistance to environmental factors - The company is the world's **1 producer of fiber cement** (Hardie® brand) and a European market leader in fiber gypsum (fermacell® brand)[28](index=28&type=chunk) - Principal raw materials for fiber cement are cellulose fiber, silica, Portland cement, and water, while for fiber gypsum they are gypsum, recycled paper, and water, with supply managed through established relationships and contracts[42](index=42&type=chunk)[43](index=43&type=chunk) - The marketing strategy focuses on brand recognition, customer education, and a differentiated product range, marketing directly to homeowners, architects, and builders in addition to selling through distributors and dealers[50](index=50&type=chunk)[57](index=57&type=chunk) - The company's competitive advantage is supported by continued investment in R&D for new products and process technologies, with intellectual property consisting of patents, manufacturing know-how, and trade secrets[59](index=59&type=chunk)[60](index=60&type=chunk)[61](index=61&type=chunk) [Organizational Structure](index=17&type=section&id=Organizational%20Structure) James Hardie Industries plc is incorporated and domiciled in Ireland, with significant wholly-owned subsidiaries across various jurisdictions - JHI plc is incorporated and domiciled in Ireland, with a table listing its significant wholly-owned subsidiaries across jurisdictions including Australia, the US, Germany, and the Netherlands[68](index=68&type=chunk)[69](index=69&type=chunk) [Property, Plants and Equipment](index=18&type=section&id=Property%2C%20Plants%20and%20Equipment) The company owns manufacturing plants globally, with plans for capacity expansion in the US and Europe, while total capital expenditures decreased in FY25 Manufacturing Nameplate Capacity (mmsf) as of 31 March 2025 | Region | Current Capacity (mmsf) | Planned Future Capacity (mmsf) | | :--- | :--- | :--- | | **United States fiber cement** | 4,979 | 6,479 | | **Asia Pacific fiber cement** | 497 | 497 | | **Europe fiber gypsum** | 1,143 | 1,395 | | **Europe fiber cement** | — | 300 | Capital Expenditures by Fiscal Year (US$ Millions) | Region | FY2025 | FY2024 | FY2023 | | :--- | :--- | :--- | :--- | | North America Fiber Cement | $287.2 | $298.1 | $392.0 | | Asia Pacific Fiber Cement | $53.1 | $47.8 | $136.2 | | Europe Building Products | $74.3 | $89.7 | $57.8 | | General Corporate and R&D | $7.6 | $13.7 | $5.3 | | **Total Capital Expenditures** | **$422.2** | **$449.3** | **$591.3** | - In August 2024, the company shut down manufacturing in the Philippines, and in fiscal year 2024, it cancelled plans for a greenfield site in Truganina, Australia, with both properties currently for sale[82](index=82&type=chunk) [Directors, Senior Management and Employees](index=21&type=section&id=Directors%2C%20Senior%20Management%20and%20Employees) This section provides comprehensive details on the company's leadership, remuneration practices, and corporate governance framework [James Hardie Executive Team](index=21&type=section&id=James%20Hardie%20Executive%20Team) The company's management is led by an executive team covering key functions, including the CEO, CFO, and regional presidents - The executive team as of April 30, 2025, is led by CEO Aaron Erter, appointed in September 2022, and CFO Rachel Wilson, appointed in August 2023[83](index=83&type=chunk)[84](index=84&type=chunk) - The team includes heads of Human Resources, Legal, Technology, Information, and Operations, as well as regional presidents for North America, Asia Pacific, and Europe[85](index=85&type=chunk)[86](index=86&type=chunk)[87](index=87&type=chunk)[88](index=88&type=chunk)[89](index=89&type=chunk)[93](index=93&type=chunk)[94](index=94&type=chunk)[95](index=95&type=chunk) [Board of Directors](index=33&type=section&id=Board%20of%20Directors) The Board of Directors comprises nine non-executive directors with diverse international experience, chaired by an independent non-executive director - The Board is led by Independent, Non-Executive Chair Anne Lloyd, who was appointed to the Board in November 2018 and as Chair in November 2022[97](index=97&type=chunk) - The Board consists of nine non-executive directors with diverse international experience in finance, manufacturing, retail, and technology sectors[96](index=96&type=chunk) [Remuneration Report](index=42&type=section&id=Remuneration%20Report) The company's remuneration philosophy emphasizes pay-for-performance, with a significant portion of executive compensation being at-risk and tied to long-term incentives - The company's pay-for-performance philosophy aims to position total target remuneration at the median of its US-based peer group, with approximately **87% of the CEO's** and **67% of other Senior Executive Officers'** target compensation being 'at-risk'[114](index=114&type=chunk)[119](index=119&type=chunk)[120](index=120&type=chunk)[121](index=121&type=chunk) FY2025 Senior Executive Officer Target Compensation (US$) | Senior Executive Officer | Annual Base Salary | STI Target Value | LTI Target Value | Total Target Compensation | | :--- | :--- | :--- | :--- | :--- | | A Erter | 1,090,000 | 1,417,000 | 6,100,000 | 8,607,000 | | R Wilson | 644,800 | 483,600 | 1,100,000 | 2,228,400 | | S Gadd | 699,660 | 489,762 | 1,100,000 | 2,289,422 | | R Kilcullen | 501,120 | 325,728 | 650,000 | 1,476,848 | | T Beastrom | 468,000 | 304,200 | 500,000 | 1,272,200 | - The Long-Term Incentive (LTI) plan for FY2023-2025 had the following outcomes: ROCE RSUs vested at **2.0x target** based on an average ROCE of **48.6%**, the Scorecard LTI vested at an average of **1.57x target**, while the Relative TSR RSUs for FY2022-2024 did not vest as performance was at the **22.7th percentile**[164](index=164&type=chunk)[171](index=171&type=chunk)[179](index=179&type=chunk)[180](index=180&type=chunk) - For FY2026, base salaries for senior executives were increased, and the peer group for benchmarking was updated to a 20-company peer group by removing two homebuilders[182](index=182&type=chunk)[183](index=183&type=chunk)[184](index=184&type=chunk) - The company has stock ownership guidelines requiring the CEO to hold **5x base salary** and other Senior Executive Officers to hold **2x base salary** in company stock[191](index=191&type=chunk) [Corporate Governance Report](index=79&type=section&id=Corporate%20Governance%20Report) The company's corporate governance framework aligns with ASX Principles and NYSE Standards, with an independent Board overseeing strategy and risk through dedicated committees - The company's governance framework is evaluated against ASX Corporate Governance Principles and NYSE Corporate Governance Standards, noting minor differences such as the shareholder appointment of the auditor under Irish law[270](index=270&type=chunk)[272](index=272&type=chunk) - The Board has three standing committees: Audit, People & Remuneration, and Nominating & Governance, all composed entirely of independent directors as of the report date[281](index=281&type=chunk)[272](index=272&type=chunk) - The Board utilizes a skills matrix to ensure an appropriate mix of experience in areas like Manufacturing, Materials, Strategy, Risk Management, Financial Acumen, and Global Business, with all directors except the CEO deemed independent[319](index=319&type=chunk)[320](index=320&type=chunk)[318](index=318&type=chunk) - The company has a Global Code of Business Conduct, an Insider Trading Policy prohibiting hedging of unvested equity, and an Anti-Bribery and Corruption Policy, with an anonymous ethics hotline available to all employees[348](index=348&type=chunk)[353](index=353&type=chunk)[355](index=355&type=chunk)[350](index=350&type=chunk) - The Audit Committee oversees the risk management framework, and management concluded internal controls over financial reporting were effective in FY25[380](index=380&type=chunk)[383](index=383&type=chunk) [Section 2: Financial Review and Statements](index=104&type=section&id=Section%202) [Reading this Report](index=104&type=section&id=Reading%20this%20Report) This section contains a standard safe harbor statement regarding forward-looking statements, cautioning readers about inherent risks and uncertainties - The report includes forward-looking statements concerning future performance, the AZEK merger, dividend payments, and asbestos-related contributions, which are subject to risks and uncertainties[397](index=397&type=chunk)[398](index=398&type=chunk) [Management's Discussion and Analysis (MD&A)](index=106&type=section&id=Management%27s%20Discussion%20and%20Analysis) The MD&A section reviews the company's financial condition and operating results, highlighting critical accounting estimates and segment performance [Critical Accounting Estimates](index=106&type=section&id=Critical%20Accounting%20Estimates) Management identifies several critical accounting policies requiring significant judgment and estimation, particularly for the asbestos liability - The most critical accounting estimates include: Accounting for the AFFA, Inventory valuation, Accounting for Income Tax, Goodwill and Other Intangible Assets, and Impairment of Long-Lived Assets[404](index=404&type=chunk) - The asbestos liability is recognized based on an undiscounted and uninflated central estimate of projected future cash flows, as management views the timing and amounts as not fixed or readily determinable, and an appropriate inflation rate is uncertain over the long term[405](index=405&type=chunk) [Operating Results](index=109&type=section&id=Operating%20Results) For FY25, net sales decreased 1% to $3.88 billion, and net income fell 17% to $424.0 million, driven by lower volumes and restructuring charges Financial Highlights (FY25 vs FY24) | US$ Millions (except per share data) | FY25 | FY24 | Change | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net sales | $3,877.5 | $3,936.3 | ($58.8) | (1%) | | Gross profit | $1,505.0 | $1,588.4 | ($83.4) | (5%) | | Operating income | $655.9 | $767.4 | ($111.5) | (15%) | | Net income | $424.0 | $510.2 | ($86.2) | (17%) | | Diluted EPS | $0.98 | $1.16 | ($0.18) | (16%) | - North America Fiber Cement net sales decreased **1%** due to a **3% volume decline**, partially offset by a **2% increase** in average net sales price, with operating income margin falling **2.5 percentage points** to **29.4%**[426](index=426&type=chunk)[427](index=427&type=chunk)[429](index=429&type=chunk) - Asia Pacific Fiber Cement net sales decreased **8%** (7% in A$), driven by a **19% volume decline** primarily from the closure of Philippines operations, incurring restructuring expenses of **US$50.3 million**[430](index=430&type=chunk)[431](index=431&type=chunk)[433](index=433&type=chunk) - Europe Building Products net sales increased **3%** (4% in €) due to **4% volume growth** and higher pricing, though operating income margin decreased **1.6 percentage points** to **7.7%** due to higher costs[434](index=434&type=chunk)[437](index=437&type=chunk)[438](index=438&type=chunk) [Liquidity and Capital Allocation](index=115&type=section&id=Liquidity%20and%20Capital%20Allocation) The company's cash position increased in FY25, with significant capital expenditures and share repurchases, and a $4.3 billion bridge commitment secured for the AZEK merger Cash Flow Summary (US$ Millions) | Cash Flow Activity | FY25 | FY24 | | :--- | :--- | :--- | | Net cash provided by operating activities | $802.8 | $914.2 | | Net cash used in investing activities | $446.7 | $470.5 | | Net cash used in financing activities | $165.9 | $210.1 | - Capital expenditures were **US$422.2 million** in FY25, with an estimated **US$325 million** planned for FY26[457](index=457&type=chunk) - The company repurchased **4.5 million shares** for **US$149.9 million** in FY25, with share repurchases expected to be paused until after the AZEK merger is completed[460](index=460&type=chunk) - In April 2025, after the fiscal year end, the company used existing cash to pay off its outstanding term loan balance of **US$295.3 million**[449](index=449&type=chunk)[649](index=649&type=chunk) [Outlook and Trend Information](index=118&type=section&id=Outlook%20and%20Trend%20Information) For fiscal year 2026, the company anticipates a slight downturn in the US residential market but relative flatness in Australia and Europe, aiming to outperform in all segments - FY2026 Outlook: - **US Residential Market:** Expected to be down vs FY25, with Repair & Remodel declining more than New Construction - **Australia Market:** Addressable housing market expected to be relatively flat - **Europe Market:** Overall addressable market expected to be flat - **Company Performance:** Expects to outperform end markets across all three segments[465](index=465&type=chunk)[466](index=466&type=chunk)[467](index=467&type=chunk)[468](index=468&type=chunk) [Consolidated Financial Statements](index=119&type=section&id=Consolidated%20Financial%20Statements) This section presents the audited consolidated financial statements for the fiscal years ended March 31, 2025, 2024, and 2023, prepared in accordance with U.S. GAAP [Report of Independent Registered Public Accounting Firm](index=120&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) Ernst & Young LLP issued an unqualified opinion on the consolidated financial statements and internal control over financial reporting, identifying the Asbestos Liability Valuation as a Critical Audit Matter - The independent auditor, Ernst & Young LLP, issued an unqualified opinion on the consolidated financial statements and the company's internal control over financial reporting as of March 31, 2025[471](index=471&type=chunk)[472](index=472&type=chunk) - The Asbestos Liability Valuation was identified as a Critical Audit Matter due to the inherent uncertainty and complexity of the actuarial estimates and subjective assumptions used[475](index=475&type=chunk)[476](index=476&type=chunk) [Financial Statements](index=122&type=section&id=Financial%20Statements) The consolidated financial statements present the company's financial position and performance, with total assets of $5.23 billion and net sales of $3.88 billion in FY25 Consolidated Balance Sheet Data (US$ Millions) | | 31 March 2025 | 31 March 2024 | | :--- | :--- | :--- | | Total current assets | $1,701.8 | $1,428.4 | | Total assets | $5,229.9 | $4,912.6 | | Total current liabilities | $810.2 | $797.7 | | Total liabilities | $3,068.4 | $3,053.7 | | Total shareholders' equity | $2,161.5 | $1,858.9 | Consolidated Statement of Operations Data (US$ Millions) | | FY2025 | FY2024 | FY2023 | | :--- | :--- | :--- | :--- | | Net sales | $3,877.5 | $3,936.3 | $3,777.1 | | Gross profit | $1,505.0 | $1,588.4 | $1,312.0 | | Operating income | $655.9 | $767.4 | $741.4 | | Net income | $424.0 | $510.2 | $512.0 | [Notes to Consolidated Financial Statements](index=126&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of accounting policies and financial results, including consolidation of AICF, restructuring expenses, debt, asbestos liabilities, and contingencies - The company consolidates the Asbestos Injuries Compensation Fund (AICF) as a Variable Interest Entity (VIE) because it is considered the primary beneficiary due to its funding obligations under the AFFA[487](index=487&type=chunk)[489](index=489&type=chunk) - FY2025 restructuring expenses of **US$50.3 million** were recorded for the closure of the Philippines manufacturing and commercial operations[565](index=565&type=chunk)[566](index=566&type=chunk) - As of March 31, 2025, the total asbestos liability was **US$983.6 million**, with the actuarial central estimate for the undiscounted and uninflated liability at **US$907.4 million**[476](index=476&type=chunk)[592](index=592&type=chunk) - The company is defending an Australian securities class action filed in May 2023 and is subject to an ongoing ATO audit regarding transfer pricing, with no reserve recorded for either matter as of March 31, 2025[609](index=609&type=chunk)[610](index=610&type=chunk) - The effective tax rate was **34.3%** in FY25, compared to **32.4%** in FY24 and **29.2%** in FY23[613](index=613&type=chunk) [Remuneration of Independent Registered Public Accounting Firm](index=162&type=section&id=Remuneration%20of%20Independent%20Registered%20Public%20Accounting%20Firm) This section details the fees paid to the independent registered public accounting firm, Ernst & Young LLP, for professional services over the last three fiscal years Fees Paid to Independent Auditor (US$ Millions) | Description of Service | FY25 | FY24 | FY23 | | :--- | :--- | :--- | :--- | | Audit fees | $7.3 | $7.2 | $6.8 | | Audit-related fees | $0.1 | — | — | | Tax fees | $0.1 | — | — | | All other fees | $0.1 | — | — | - All services provided by the independent registered public accounting firm are pre-approved by the Audit Committee[652](index=652&type=chunk) [Section 3: Risks, Legal, and Other Information](index=163&type=section&id=Section%203) [Risk Factors](index=163&type=section&id=Risk%20Factors) The company identifies several significant business, financial, legal, regulatory, and asbestos-related risks that could materially affect its operations and financial position - **Business Risks:** Demand is highly dependent on residential and commercial construction markets, the company faces substantial competition, and there are risks of unforeseen delays and cost overruns in its capital expenditure programs[656](index=656&type=chunk)[658](index=658&type=chunk)[660](index=660&type=chunk) - **Financial Risks:** The acquisition of AZEK is expected to significantly increase debt to approximately **US$4.4 billion**, which could make the company more vulnerable to adverse economic conditions, and it is exposed to foreign currency exchange rate risk, particularly with non-US operations and Australian dollar-denominated asbestos liabilities[672](index=672&type=chunk)[671](index=671&type=chunk) - **Legal & Regulatory Risks:** The business is subject to extensive environmental and health regulations, including those for crystalline silica, and cybersecurity incidents and evolving data privacy laws pose significant risks[674](index=674&type=chunk)[675](index=675&type=chunk)[679](index=679&type=chunk)[682](index=682&type=chunk) - **Asbestos-Related Risks:** The obligation to make payments to the AICF under the AFFA could materially affect financial position and liquidity, and a potential escalation in claims could increase the asbestos liability and extend the payment period[689](index=689&type=chunk)[693](index=693&type=chunk) [Legal Proceedings](index=176&type=section&id=Legal%20Proceedings) The company is involved in various legal proceedings, including a recently concluded New Zealand claim, an ongoing Australian class action, and an ATO audit - The long-running New Zealand Weathertightness Claim (Cridge litigation) was concluded through a confidential settlement in March 2025, and no such claims are currently being actively litigated[608](index=608&type=chunk) - A securities class action was filed in Australia in May 2023 concerning statements made between February and November 2022, which the company believes were proper and is defending[609](index=609&type=chunk) - The company is subject to an ongoing audit by the Australian Taxation Office (ATO) regarding transfer pricing for income years 2010-2019, with the company believing its arrangements are compliant and having not recorded a reserve[610](index=610&type=chunk) [Controls and Procedures](index=177&type=section&id=Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective as of March 31, 2025, an assessment affirmed by the independent auditor - Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[722](index=722&type=chunk) - Based on the COSO 2013 framework, management concluded that internal control over financial reporting was effective as of March 31, 2025, an assessment audited by Ernst & Young LLP, which also provided an unqualified opinion[724](index=724&type=chunk)[725](index=725&type=chunk)[728](index=728&type=chunk) [Cybersecurity](index=179&type=section&id=Cybersecurity) The company maintains a comprehensive cybersecurity program aligned with the NIST Cybersecurity Framework, with governance overseen by the Board and executive leadership - The company's cybersecurity program is aligned with the National Institute for Standards and Technology (NIST) Cybersecurity Framework[735](index=735&type=chunk) - Governance is overseen by the Board of Directors, the executive leadership team, the CIO, and a dedicated VP of Cybersecurity, with the Board receiving regular updates on cybersecurity practices and risks[740](index=740&type=chunk)[743](index=743&type=chunk) - In fiscal year 2025, the company did not identify any cybersecurity threats that have materially affected or are reasonably likely to materially affect its business strategy, results of operations, or financial condition[744](index=744&type=chunk) [Employees](index=181&type=section&id=Employees) The company employed an average of 5,860 people in fiscal year 2025, with a significant portion in the US and Canada, and a satisfactory relationship with labor unions Average Number of Employees by Fiscal Year | Region/Function | FY2025 | FY2024 | FY2023 | | :--- | :--- | :--- | :--- | | Fiber Cement US & Canada | 3,543 | 3,337 | 3,228 | | Europe Building Products | 1,098 | 1,043 | 981 | | Fiber Cement Australia | 637 | 597 | 594 | | Other | 582 | 802 | 670 | | **Total Employees** | **5,860** | **5,679** | **5,473** | [Listing Details](index=181&type=section&id=Listing%20Details) James Hardie's securities trade on the ASX as CUFS and on the NYSE as ADSs under the symbol "JHX", with fees payable to the ADS depositary - The company's securities are listed on the ASX as CUFS and on the NYSE as ADSs, both under the ticker symbol "JHX"[747](index=747&type=chunk) - Deutsche Bank acts as the depositary for the ADS program and charges fees to holders for services like issuance/cancellation (up to **US$0.05 per ADS**) and an annual maintenance fee (up to **US$0.05 per ADS**)[751](index=751&type=chunk)[753](index=753&type=chunk) [Purchases of Equity Securities by the Issuer and Affiliated Purchases](index=183&type=section&id=Purchases%20of%20Equity%20Securities%20by%20the%20Issuer%20and%20Affiliated%20Purchases) Information regarding the company's share buyback programs and related activity is detailed in Note 17 to the consolidated financial statements - Information on share buyback programs is detailed in Note 17 to the audited consolidated financial statements[757](index=757&type=chunk) [Taxation](index=184&type=section&id=Taxation) This section summarizes the material US and Irish tax consequences for shareholders, including dividend taxation, capital gains, and withholding tax exemptions - **US Taxation:** For US Shareholders, distributions are generally taxed as dividends, which are expected to qualify for the lower "qualified dividend income" tax rate, and the company does not expect to be classified as a Passive Foreign Investment Company (PFIC)[764](index=764&type=chunk)[765](index=765&type=chunk)[771](index=771&type=chunk) - **Irish Taxation:** Dividends are subject to a **25% Irish Dividend Withholding Tax (DWT)**, but exemptions are available for shareholders resident in EU or treaty countries (like the US) who provide the necessary documentation, with ADS holders with a US registered address potentially exempt from submitting a declaration[780](index=780&type=chunk)[781](index=781&type=chunk)[783](index=783&type=chunk) - Non-Irish resident shareholders are generally not subject to Irish tax on capital gains from the sale of shares, unless the shares are connected to a trade carried on in Ireland through a branch or agency[788](index=788&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=192&type=section&id=Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to foreign currency exchange, interest rate, and commodity price risks, with mitigation strategies in place - The company is exposed to foreign currency risk, with approximately **30.2% of FY25 net sales** and **34.1% of expenses** denominated in currencies other than the US dollar[799](index=799&type=chunk) - A **one percentage point change in interest rates** would result in a **US$9.1 million change** in annual cash interest expense, assuming its variable-rate facilities were fully drawn[802](index=802&type=chunk) - A **+/- 10% change** in the average cost of core commodities would have impacted the cost of sales for fiscal year 2025 by approximately **+/- US$50.9 million**[804](index=804&type=chunk) [Other Information](index=194&type=section&id=Other%20Information) This section provides miscellaneous corporate information, confirming the company's Irish domicile and the absence of Irish exchange controls - The company is domiciled in Ireland and registered under number 485719[806](index=806&type=chunk) - There are no Irish exchange controls restricting the import/export of capital or remittances to non-resident security holders, and no limitations on non-residents holding or voting the company's common stock[809](index=809&type=chunk)[810](index=810&type=chunk) [Section 4: Shareholder and Reference Information](index=196&type=section&id=Section%204) [Share/CHESS Units of Foreign Securities Information](index=196&type=section&id=SHARE%2FCHESS%20Units%20of%20Foreign%20Securities%20Information) As of April 30, 2025, the company had 429.86 million CUFS outstanding, with Australia holding the largest beneficial ownership Geographic Distribution of Beneficial Ownership (31 March 2025) | Geographic Region | Percentage | | :--- | :--- | | Australia | 50.95% | | United States | 19.51% | | United Kingdom | 5.40% | | Europe (ex-UK) | 7.55% | | Asia | 4.09% | | Other | 12.50% | - As of April 30, 2025, the top 20 CUFS holders controlled **87.58%** of the company's shares[820](index=820&type=chunk) - Substantial shareholders with holdings over **3%** include AustralianSuper Pty Ltd (**6.04%**), Blackrock, Inc. (**5.70%**), OppenheimerFunds, Inc (**5.48%**), The Vanguard Group, Inc (**5.12%**), and KKR Entities (**4.08%**)[819](index=819&type=chunk) [Glossary of Abbreviations and Definitions](index=198&type=section&id=Glossary%20of%20Abbreviations%20and%20Definitions) This section provides a glossary of abbreviations and definitions used throughout the report, along with reconciliations of non-GAAP financial measures - The glossary defines key terms and abbreviations used in the report, such as AFFA, AICF, CUFS, LTI, and ROCE[821](index=821&type=chunk)[822](index=822&type=chunk) Reconciliation of Net Income to Adjusted Net Income (US$ Millions) | | FY25 | FY24 | FY23 | | :--- | :--- | :--- | :--- | | Net income | $424.0 | $510.2 | $512.0 | | Asbestos related expenses and adjustments | 140.5 | 153.3 | 38.4 | | AICF interest income | (10.9) | (9.0) | (4.2) | | Restructuring expenses | 50.3 | 20.1 | — | | Merger costs & related interest | 17.3 | — | — | | Tax adjustments | 23.1 | 32.9 | 59.3 | | **Adjusted net income** | **$644.3** | **$707.5** | **$605.5** | Adjusted Diluted Earnings Per Share (US$) | | FY25 | FY24 | FY23 | | :--- | :--- | :--- | :--- | | Adjusted diluted earnings per share | $1.49 | $1.61 | $1.36 | [Exhibit List](index=205&type=section&id=Exhibit%20List) This section lists all exhibits filed with the Form 20-F, including foundational corporate documents, material contracts, and required SEC certifications - The exhibit list includes foundational corporate documents, material contracts such as debt and AFFA agreements, equity plans, the AZEK merger agreement, and required SEC certifications[838](index=838&type=chunk)[839](index=839&type=chunk)[840](index=840&type=chunk)[841](index=841&type=chunk)[842](index=842&type=chunk) [Signatures](index=211&type=section&id=Signatures) The annual report is signed and certified by the company's Chief Executive Officer and Chairperson on behalf of the Board of Directors - The Form 20-F is signed by Aaron Erter (CEO) and Anne Lloyd (Chairperson) on May 20, 2025[843](index=843&type=chunk)[844](index=844&type=chunk)[845](index=845&type=chunk)

Core Insights - James Hardie Building Products Inc. has entered a three-year exclusive agreement with Davidson Homes to supply Hardie® siding and trim products for new housing developments across multiple states [1][2][5] Company Overview - James Hardie is recognized as the leading brand of siding in North America, specializing in fiber cement siding and exterior design solutions [2][8] - Davidson Homes, founded in 2009, is one of the fastest-growing private home builders in the U.S., with a strong presence in the Southeast and Texas, and recently expanded into Arizona [10][11] Agreement Details - The agreement will see Hardie® products become the standard for new homes built by Davidson Homes through 2028, enhancing the quality and design options available to homeowners [2][6] - This partnership aims to combine the expertise of both companies to deliver homes that are visually appealing and durable, catering to various budgets [6] Product Benefits - Hardie® siding products are non-combustible, pest-resistant, and designed to withstand water and extreme weather conditions, offering a wide range of colors and styles for diverse design preferences [4][7] - Homeowners will benefit from the trusted protection and versatile design possibilities that Hardie® products provide, enabling them to create their dream homes [4][5] Market Position - Davidson Homes ranked No. 46 on Builder magazine's 2025 Builder 100 list, achieving 1,558 closings and generating $605 million in revenue in 2024, highlighting its rapid growth and market presence [11]

Core Viewpoint - The article highlights James Hardie (JHX) as a recommended growth stock based on its strong growth metrics and favorable Zacks Rank, indicating potential for solid returns for growth investors [2][10]. Earnings Growth - James Hardie has a historical EPS growth rate of 17.5%, with projected EPS growth of 14.6% this year, significantly outperforming the industry average of 6.6% [5][4]. Cash Flow Growth - The company exhibits a year-over-year cash flow growth of 14.7%, which is substantially higher than the industry average of 3.5% [6]. Additionally, its annualized cash flow growth rate over the past 3-5 years stands at 20.7%, compared to the industry average of 10.1% [7]. Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for James Hardie, with the current-year earnings estimates increasing by 0.8% over the past month [8]. Overall Assessment - James Hardie holds a Zacks Rank of 2 (Buy) and a Growth Score of B, indicating it is a solid choice for growth investors and a potential outperformer in the market [10].

Core Insights - James Hardie Building Products Inc. has entered into a three-year exclusive agreement with McKinley Homes to supply Hardie® siding and trim for all new residential developments across several states in the Southeastern United States [1][5] - This collaboration emphasizes both companies' commitment to quality, innovation, and the delivery of high-quality homes with lasting curb appeal [2][4] Company Overview - James Hardie is recognized as the 1 brand of siding in North America, specializing in fiber cement siding and exterior solutions [1][8] - The company operates with a diverse workforce of over 3,700 employees in North America and is committed to an inclusive company culture and Zero Harm [8] Product Features - Hardie® siding products are non-combustible, pest-resistant, and designed to withstand damage from water and extreme weather conditions [4][7] - The product range offers a variety of colors and styles, providing homeowners with both timeless and contemporary design options [4] McKinley Homes Overview - McKinley Homes, based in Atlanta, GA, specializes in real estate development and vertical construction, with over 45 years of combined experience in completing more than 20,000 lots/homes [10] - The company currently owns over 6,000 lots and is positioned for continued growth throughout the United States [10]

Core Insights - James Hardie Building Products Inc. has entered into a multi-year exclusive agreement with Daiwa House USA subsidiaries, including Stanley Martin Homes, CastleRock Communities, and Trumark Homes, to supply Hardie® siding and trim products for new housing developments across the United States until the end of 2027 [1][4][7] Company Overview - James Hardie is recognized as the leading brand of siding in North America, specializing in fiber cement siding and trim products that are designed for durability and aesthetic appeal [4][9] - Daiwa House Group, established in 1955, is a major provider of residential housing in Japan, operating in 25 countries and offering a diverse range of real estate services [2][11] Agreement Details - The agreement will standardize the use of Hardie® siding and trim products in select new homes built by the three subsidiaries, enhancing the quality and performance of these homes [4][6] - The collaboration aims to deliver premium exterior solutions that prioritize both performance and aesthetics, benefiting homebuyers with trusted protection and superior craftsmanship [6][7] Strategic Importance - This partnership reinforces James Hardie's commitment to setting industry standards in durability, affordability, and climate resilience, while also expanding its market presence through collaboration with established homebuilders [4][7] - The relationship is expected to elevate homebuilding standards by combining the expertise and innovation of both companies, ultimately benefiting a wide range of buyers [7]