James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Q1 2025 Earnings Presentation
24 slides from James Hardie Industries's earnings presentation, Aug 12, 2024
Slide 1: First Quarter FY25 Earnings Presentation
First Quarter FY25 Earnings Presentation MONDAY, AUGUST 12th | CHICAGO | DUBLIN TUESDAY, AUGUST 13th | SYDNEY
Slide 2: Cautionary Note and Use of Non-GAAP Measures
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 re
Slide 3: Agenda
Agenda Aaron Erter Chief Executive Officer Key Messages Strategy Update Financial Review Outlook & Guidance Rachel Wilson Q&A Chief Financial Officer Q1 FY25 3 Earnings Presentation
Slide 4: Key Messages
Key Messages Our Operational Focus A Solid Start to FY25 Executing Our Strategy Achieved Our Q1 Guidance ✓ 751 mmsft North America Volume ✓ 31.2% North America EBIT Margin + $178mm Total Adjusted Net Income Delivering on Our Commitments Delivering Value for Our Customers Managing Decisively Outperfo
Slide 5: Our Strategy Spans the Value Chain
Our Strategy Spans the Value Chain Homeowner Focused, Customer and Contractor Driven Strategic Initiatives Profitably grow and Bring our customers high Connect and influence all 1 take share where we have the right to win 2 valued, differentiated solutions 3 the participants in the customer value ch
Slide 6: Regional Strategic Priorities
Regional Strategic Priorities Global Strategic Initiatives Profitably grow and take 1 share where we have the right to win North America Asia Pacific Europe Bring our customers high 2 valued, differentiated solutions ❑ Within R&R, accelerate material conversion ❑ Leverage our right to win to grow &
Slide 7: Flywheel for Long-Term Value Creation
Flywheel for Long-Term Value Creation Driving Long-Term Creating Demand Across Profitable Share Gain on Dem the Customer Value Chain Taking Share from Competing Substrates ersi an The Brand of Choice for v d within R&R and New Construction on Homeowners, Customers & Contractors C Cr al ea eri tio Ma
Slide 8: North America Long-Term Aspirations
North America Long-Term Aspirations Homes with James Hardie 25 20 Millions, Cumulative 15 10 5 0 2015 2020 2025 2030 2035 Double-Digit % Significant High Revenue Growth Over the Long-Term +DD% Adjusted EBITDA Margin Expansion +500bps Incremental Returns $ $ On New Capacity $$ $ 3x Deliver Long-Term
Slide 9: Financial Review
Financial Review A Solid Start to FY25 Achieved Our Q1 Guidance Positioned to Outperform the Market Demonstrating Profitable Growth Fortifying our Liquidity Position and Leverage Profile Q1 FY25 9 Earnings Presentation
Slide 10: First Quarter FY25 Financial Highlights
First Quarter FY25 Financial Highlights Net Adjusted Adjusted Share Sales EBITDA Net Income Repurchases ~$1.0bn $286mm $178mm $75mm +4% +2% +2% +$50mm Achieved Growth in ASP Delivered Growth in Managed Decisively as we Increased Authorization Across our Regions North America & Europe Continue to Inv
Slide 11: First Quarter FY25 Adjusted EBITDA
First Quarter FY25 Adjusted EBITDA perating everage espite Cement, abor Freight Headwinds mm ncluding Higher Higher olume ower olume Margin mm mm mm F ales rowth nderlying rofitability sset mpairments sia acific urope eneral Corporate F mprovement tart p Costs egment egment and R Focused on Driving
Slide 12: North America Fiber Cement Results
North America Fiber Cement Results Q1 FY25 Q1 FY24 vs. PY Key Drivers Net Sales ($mm) $729.3 $694.8 +5% ✓ Delivered volumes in line with guidance ▪ Exteriors grew +Low Single-Digits% Sales Volume 751.5 mmsf 747.8 mmsf +0% ▪ Interiors declined (Mid Single-Digits%) Average Net Sales Price $960 /msf $9
Slide 13: Asia Pacific Fiber Cement Results
Asia Pacific Fiber Cement Results Q1 FY25 Q1 FY24 vs. PY Key Drivers Net Sales ($mm) $135.3 $140.1 (3%) ✓ Favorable ASP Net Sales (A$) (2%) ▪ Volume declines in Australia impacted by softer markets Sales Volume 126.2 mmsf 138.4 mmsf (9%) Average Net Sales Price A$1,457 /msf A$1,358 /msf +7% EBIT ($m
Slide 14: Europe Building Products Results
Europe Building Products Results Q1 FY25 Q1 FY24 vs. PY Key Drivers Net Sales ($mm) $127.3 $119.4 +7% ✓ Delivered broad-based growth ▪ Fiber Gypsum Up +9% in local currency Net Sales (€) +8% ▪ Fiber Cement Up +2% in local currency Sales Volume 199.7 mmsf 187.0 mmsf +7% ✓ High-Value Products (HVP) sa
Slide 15: FY25 North America Volume Outlook
FY25 North America Volume Outlook Markets Remain Uncertain FY25 North America Volumes Residential R&R (MSD%) to (HSD%) Decline Market Outperformance Down (LSD%) To (MSD%) +/- LSD% Single-Family New Construction +4% vs. FY24 (Primary Demand Growth) +LSD% to +MSD% Growth Multi-Family New Construction
Slide 16: Guidance
Guidance Q2 FY25 FY25 North America 705 – 735 mmsf 2,950 – 3,150 mmsf Volume Down (MSD%) to (HSD%) +/- LSD% (unchanged) North America EBIT Margin 27.5% – 29.5% 29% – 31% (unchanged) Total Adjusted Net Income $135 – 155mm $630 – 700mm (unchanged) Capital $500 – 550mm Expenditures (unchanged) Reaffirm
Slide 17: Cash Generation & Capital Allocation
Cash Generation & Capital Allocation James Hardie Capital Allocation Framework 3) Deploy Excess Capital 1) Invest in Organic Growth % to Shareholders ✓ 45% Adjusted ROCE (Avg. FY20-FY24) ✓ Deployed $75mm to share repurchases ❑ Evaluate capacity using robust returns criteria ✓ Increased share repurch
Slide 18: A History of Growth
A History of Growth Customer & Foundations & Contractor Moats Focused Superior Lean Product Operating Offering Models +10% +14% 45% 3x Net Adjusted Adjusted Operating Sales Net Income ROCE Cash Flow 10-Year CAGR 10-Year CAGR 5-Year Average 3-Year Avg. FY24 FY24 FY24 FY24 vs. FY14 Established A Track
Slide 19: We Are Positioned to Accelerate Growth
We Are Positioned to Accelerate Growth We Have the We Are Anchoring on We Aspire to Deliver Right Strategy Bold Ambitions Profitable Growth Long-Term +DD% +500bps $ $ $ $ $ Revenue Adj. EBITDA Margin Returns Value Creation Homeowner Focused, Customer and Contractor Driven 3x North America Adjusted E
Slide 20: Q&A
Q&A Aaron Erter Chief Executive Officer Rachel Wilson Chief Financial Officer Q1 FY25 20 Earnings Presentation
Slide 21: Non-GAAP Financial Measures
Non-GAAP Financial Measures This Earnings Presentation forms part of a package of information about the company’s results. It should be read in conjunction with the other parts of this package, including the Management’s Analysis of Results, Earnings Release and Condensed Consolidated Financial Stat
Slide 22: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted EBIT and Adjusted EBITDA North America Fiber Cement Segment EBIT and EBITDA US$ Millions Three Months Ended 30 June US$ Millions Three Months Ended 30 June FY25 FY24 FY25 FY24 EBIT $ 235.4 $ 233.9 North America Fiber Cement Segment EBIT $ 227.3 $ 217.6 Asbestos r
Slide 23: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted interest, net Net Leverage Ratio US$ Millions Three Months Ended 30 June US$ Millions 30 June FY25 FY24 FY25 FY24 Interest, net $ 1.7 $ 5.8 Numerator: AICF interest income (3.0) (2.3) Total principal amount of debt $ 1,123.8 $ 984.8 Adjusted interest, net $ 4.7 $
Slide 24: Non-GAAP Financial Measures
Non-GAAP Financial Measures Asia Pacific Fiber Cement Segment EBIT and EBITDA A$ Millions Three Months Ended 30 June FY25 FY24 Asia Pacific Fiber Cement Segment EBIT A$ 62.5 A$ 69.5 Asia Pacific Fiber Cement Segment net sales 205.3 209.7 Asia Pacific Fiber Cement Segment EBIT margin 30.4% 33.1% Depr
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