James Hardie, a leader in high-performance, low-maintenance building products and solutions, today announced its first-quarter results for the period ending June 30, 2024. CEO Aaron Erter highlighted the strong start to the fiscal year, attributing success to the team’s commitment to delivering top-quality products and services. “We are executing our strategy, meeting our commitments, and making decisive moves as we continue to scale and invest in profitable growth,” said Erter. He expressed confidence in the company’s value proposition, especially in a challenging market, and reaffirmed the full-year guidance.
First Quarter Highlights (Q1 FY25 vs. Q1 FY24)
- Net Sales: $992 million, up 4%
- Adjusted EBIT: $236 million, up 1% with a margin of 23.8%, down 70bps
- Adjusted EBITDA: $286 million, up 2% with a margin of 28.8%, down 40bps
- Adjusted Net Income: $178 million, up 2%
- Adjusted Diluted EPS: $0.41, up 4%
CFO Rachel Wilson emphasized the company’s strong financial position, noting nearly $1 billion in total liquidity, despite $130 million in capital expenditures and ongoing share repurchases. The leverage ratio improved to 0.66x, marking the fifteenth consecutive quarter at or below 1.0x leverage. Wilson also mentioned that strong margins have generated sustainable cash flow, providing flexibility to support long-term growth, enhance shareholder returns, and explore inorganic growth opportunities that align with the company’s strategy.
CEO Erter acknowledged the challenging market conditions but praised the teams for their adaptability and decisive management. He noted that the North American market for exterior products is expected to decline by low to mid-single digits throughout the fiscal year, with particularly tough conditions anticipated in the second quarter. However, Erter remains confident that the company will achieve its full-year targets within the previously provided ranges.
Q2 FY25 Guidance
- North American Volumes: 705 million to 735 million standard feet
- North American EBIT Margin: 27.5% to 29.5%
- Adjusted Net Income: $135 million to $155 million
- Full Year FY25 Guidance (Unchanged)
- North American Volumes: 2.95 to 3.15 billion standard feet
- North American EBIT Margin: 29% to 31%
- Adjusted Net Income: $630 million to $700 million
- Capital Expenditures: $500 million to $550 million
