Pro Medicus Ltd (James Hardie Industries plc (PME share price in focusThe ASX:PME ) share price has risen 22.5% since the start of 2025. The ASX:JHX ) share price is about 0.0% above its 52-week low.Pro Medicus is an established provider of radiology software for hospitals, imaging centres and healthcare groups worldwide.The Pro Medicus suite of products centres around radiology information systems (RIS), Picture Archiving and Communication Systems (PACS), and advanced visualisation solutions. These product ...

Industry Overview - The Australian construction and materials sector is experiencing a divergence, with public investment booming while private building activity is declining [1][5] - The overall construction market is projected to grow at a CAGR of 4.31% from 2025 to 2030, driven by varying factors [1] Public Investment - Public infrastructure and energy spending are significant growth drivers, with record funding committed for major projects [2][7] - Deloitte estimates that the total value of investment projects under construction rose by 13.6% to $473.8 billion as of March 2025, with major transport initiatives leading the way [3][4] Private Sector Challenges - The private construction sector is facing challenges due to high interest rates, rising material costs, and builder administrations, leading to a 9% decline in total building activity in FY24 [5][6] - Companies heavily reliant on private work are encountering a more difficult environment, contrasting sharply with the public sector's stability [5] Labor Market and Cost Pressures - The construction sector is experiencing a skilled labor shortage, needing an additional 90,000 workers by the end of 2025, which could rise to 130,000 by 2029 [11] - Building construction prices have increased by 31.1% from September 2020 to June 2024, while house construction costs rose by 40.8%, impacting private sector confidence [4][5] Decarbonization and Technology - Decarbonization and the energy transition are creating long-term growth opportunities, insulated from the volatility of private construction [13] - Adoption of digital solutions like Building Information Modelling (BIM) and modular construction is enhancing efficiency and reducing reliance on scarce labor [14] Company-Specific Insights - **Downer EDI (ASX: DOW)**: Transitioning to urban services with a strong backlog of government contracts, FY25 results showed an 81.6% increase in NPAT and a 46.5% dividend increase, indicating a stable growth outlook [20][21][23] - **Lendlease Group (ASX: LLC)**: Undergoing a strategic overhaul, the company reported a return to profitability but faces a challenging market, with a "Sell" rating due to elevated risks and execution uncertainty [26][30] - **Seven Group Holdings (ASX: SGH)**: The acquisition of Boral has strengthened its position in construction materials, with FY25 results showing revenue growth and improved cash generation, making it a stock to watch [32][34] - **Maas Group Holdings (ASX: MGH)**: Achieved a 38% EBITDA growth in its Construction Materials division, supported by strong demand in infrastructure and renewable energy sectors, rated as a "Buy" [36][39][40] - **James Hardie Industries (ASX: JHX)**: Facing a credibility crisis with a 12% decline in North American sales volumes, the company is rated as a "Sell" due to operational fragility and legal investigations [43][44][47] - **Fletcher Building (ASX: FBU)**: In a multi-year strategic reset, the company reported a 9% revenue decline and a net loss, but is making progress on legacy issues, rated as a "Hold" [50][52][54] - **Reliance Worldwide Corporation (ASX: RWC)**: Despite a 5.5% increase in net sales, profitability is under pressure, leading to a "Hold" rating as the company navigates a slower growth environment [57][59]