James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — Q3 FY2025 Earnings Presentation
22 slides from James Hardie Industries's earnings presentation, Feb 18, 2025
Slide 1: Third Quarter FY25 Earnings Presentation
Third Quarter FY25 Earnings Presentation TUESDAY, FEBRUARY 18th | CHICAGO | DUBLIN WEDNESDAY, FEBRUARY 19th | 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 Business Update & Strategy Financial Review Guidance & Outlook Rachel Wilson Q&A Chief Financial Officer Q3 FY25 3 Earnings Presentation
Slide 4: Key Messages
Key Messages Our Operational Focus Consistent Results Delivery Delivering on Our Commitments Delivering Value for Our Customers Keeping Our Commitments Managing Decisively On Track to Deliver FY25 Guidance ✓ 2.95bnsf+ North America Volume Investing for Future Growth ✓ 29.3%+ North America EBIT Margi
Slide 5: Segment Business Update
Segment Business Update North America Fiber Cement Asia Pacific Fiber Cement Europe Building Products ✓ Outperforming our end markets through our ✓ Increasing share in Australia & New Zealand ✓ Positioning to capture improvement in UK superior total value proposition and driving through new customer
Slide 6: 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 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: Financial Key Messages
Financial Key Messages Consistent Results Delivery On-Track to Achieve Our Guidance Positioned to Outperform the Market and Deliver on Our FY25 Commitments Planning for Profitable Growth in FY26 % Executing Our Returns-Driven Capital Allocation Framework Q3 FY25 8 Earnings Presentation
Slide 9: Third Quarter FY25 Financial Highlights
Third Quarter FY25 Financial Highlights Net Adjusted Adjusted Adjusted Sales EBITDA EBITDA Margin Net Income $953mm $262mm 27.5% $154mm (3%) (7%) (120bps) (15%) Achieved Growth in ASP Comparing vs. Comparing vs. Comparing vs. Across our Regions Record Q3 Results in FY24 Record Q3 Results in FY24 Rec
Slide 10: Third Quarter FY25 Adjusted EBITDA
Third Quarter FY25 Adjusted EBITDA ) olumes artially ffset y Favorable nfavorable Fixed Cost bsorption Raw Material Headwinds More than ffset More than ffset y hilippines y Favorable 2 mm Rebate rue p mm F 2 F 2 F 24 ower ales nderlying sia acific Europe Excluding tock ased F 2 re andemic) rofitabil
Slide 11: North America Fiber Cement Results
North America Fiber Cement Results Q3 FY25 Q3 FY24 vs. PY Key Drivers ✓ Net Sales roughly even with prior year, Net Sales ($mm) $719.3 $727.0 (1%) with volumes above Q2, as expected ▪ Exteriors declined (LSD%) vs. record Q3 FY24 Sales Volume 744.0 mmsf 766.5 mmsf (3%) ▪ Interiors declined (MSD%) Ave
Slide 12: Asia Pacific Fiber Cement Results
Asia Pacific Fiber Cement Results Q3 FY25 Q3 FY24 vs. PY1 Key Drivers Net Sales ($mm) $118.1 $133.8 (12%) ✓ Australia & New Zealand net sales Net Sales (A$) (13%) approximately flat in local currency Net Sales (A$) – Australia & New Zealand (~Flat) ▪ (LSD%) volume decline due to continued market sof
Slide 13: Europe Building Products Results
Europe Building Products Results Q3 FY25 Q3 FY24 vs. PY1 Key Drivers ✓ Delivered +LSD% underlying1 sales growth Net Sales ($mm) $115.9 $117.5 (1%) ▪ Fiber Gypsum Down (MSD%) in local currency and relatively flat on an underlying basis. Net Sales (€) (1%) ▪ Fiber Cement Up +21% in local currency Sale
Slide 14: 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) ✓ Increased share repurchase program to $300mm during 1Q ❑ Evaluate capacity expansion using robust and deployed
Slide 15: FY25 Guidance
FY25 Guidance 2H FY25 FY25 North America Volume 1.48+ bnsf 2.95+ bnsf (unchanged) (unchanged) North America EBIT Margin 28.5%+ 29.3%+ (unchanged) (unchanged) Total $300mm+ $635mm+ Adjusted Net Income (unchanged) (unchanged) Capital ~$420mm Expenditures (prev. $420-440mm) Volume Outlook Consistent wi
Slide 16: Planning Assumptions & Aspirations
Planning Assumptions & Aspirations FY26 Long-Term Planning Assumptions Aspirations North America Growth vs. FY25 Double-Digit % Net Sales Growth North America Growth vs. FY25 3x vs. FY24 Adjusted EBITDA ($mm) North America Expansion vs. FY25 +500bps vs. FY24 Adjusted EBITDA Margin Total Adjusted EBI
Slide 17: 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 18: Q&A
Q&A Aaron Erter Chief Executive Officer Rachel Wilson Chief Financial Officer Q3 FY25 18 Earnings Presentation
Slide 19: 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 20: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted EBIT and Adjusted EBITDA North America Fiber Cement Segment EBIT and EBITDA US$ Millions Three and Nine Months Ended 31 December US$ Millions Three and Nine Months Ended 31 December 9 Months 9 Months 9 Months 9 Months Q3 FY25 Q3 FY24 Q3 FY25 Q3 FY24 FY25 FY24 FY2
Slide 21: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted General Corporate costs US$ Millions Three and Nine Months Ended 31 December 9 Months 9 Months Q3 FY25 Q3 FY24 FY25 FY24 General Corporate costs $ 31.8 $ 48.0 $ 108.8 $ 138.8 Less: Restructuring expenses - - - (20.1) Net Leverage Ratio Asbestos related expenses a
Slide 22: Non-GAAP Financial Measures
Non-GAAP Financial Measures Asia Pacific Fiber Cement Segment Adjusted EBIT and Adjusted EBITDA A$ Millions Three and Nine Months Ended 31 December 9 Months 9 Months Q3 FY25 Q3 FY24 FY25 FY24 Asia Pacific Fiber Cement Segment EBIT A$ 52.8 A$ 56.7 A$ 104.3 A$ 194.1 Restructuring expenses - - 84.7 - A
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