James Hardie Industries (NYSE:JHX) Q3 2026 Earnings call February 10, 2026 05:00 PM ET Company ParticipantsAaron Erter - CEOBrook Campbell-Crawford - Head of Cyclical Industrials ResearchDaniel Kang - Head of Basic Industrials and Australian Equities ResearchJon Skelly - President and GM in North America Building ProductsKeith Chau - Partner and Head of Basic Industrials ResearchKeith Hughes - Managing Director in Sell Side Equity ResearchPeter Steyn - Division Director and Managing DirectorPhilip Ng - Mana ...

James Hardie Industries (NYSE:JHX) Q3 2026 Earnings call February 10, 2026 05:00 PM ET Company ParticipantsAaron Erter - CEOBrook Campbell-Crawford - Head of Cyclical Industrials ResearchDaniel Kang - Head of Basic Industrials and Australian Equities ResearchJon Skelly - President and GM in North America Building ProductsKeith Chau - Partner and Head of Basic Industrials ResearchKeith Hughes - Managing Director in Sell Side Equity ResearchPeter Steyn - Division Director and Managing DirectorPhilip Ng - Mana ...

James Hardie Industries (NYSE:JHX) Q3 2026 Earnings call February 10, 2026 05:00 PM ET Speaker0North America Building Products Group. John, along with Jon Mattson, our new Chief Sales Officer, have stepped into expanded roles recently. Each leader brings an impressive track record of driving sustainable sales growth, and each have deep knowledge of our industry, and each one of them has already contributed meaningfully to the commercial synergies that I will speak about on today's call. I am confident in th ...

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]