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Earnings analysis · 10-K

JHX earnings analysis

Filed May 19, 2026 · Our reading of the company's report

The latest report

James Hardie Industries plc reported a strong FY26 with net sales of $4.84 billion, a 25% increase from FY25 driven primarily by the acquisition of AZEK. However, net income fell to $104 million, down 75% due to…

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James Hardie Industries plc reported a strong FY26 with net sales of $4.84 billion, a 25% increase from FY25 driven primarily by the acquisition of AZEK. However, net income fell to $104 million, down 75% due to substantial acquisition costs and increased interest expenses. The company's strategic focus on enhancing its residential and commercial construction offerings remains intact, with plans to drive growth through continued product innovation and integration efficiencies.

Read the original on SEC.gov

From revenue to operating profit

Where each $100 of revenue went in this report.

Of every $100 of revenue Cost of sales $65 Operating expenses $26 Left as operating profit $9

Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.

Reported figures

Earnings per share
$0.19
Segment
Siding & Trim
Segment
Deck, Rail & Accessories
Segment
Australia & New Zealand
Segment
Europe

What stood out

  • 25% Revenue Growth Driven by Acquisition

    Net sales increased to $4.84 billion in FY26, up from $3.88 billion in FY25, primarily due to revenue from AZEK.

  • Strong Cash Flow Position

    Net cash provided by operating activities totaled $589.8 million for FY26, though down from $802.8 million in FY25.

  • Increased Segment Revenues

    Siding & Trim segment, including AZEK, contributed $2.96 billion in net sales for FY26, representing a 3% increase.

  • Successful Integration Plans

    James Hardie targets synergies from the AZEK acquisition to enhance market presence and cost efficiencies.

  • Restructuring and Optimization Processes

    Restructuring expenses decreased significantly to $16.2 million in FY26 from $50.3 million in FY25.

  • Improvement in Free Cash Flow

    Free Cash Flow was $314.1 million in FY26, despite a reduction from $381.0 million in FY25, reflecting continued operational profitability.

What to watch

  • Significant Acquisition Costs Impacting Earnings

    Acquisition related expenses totaled $206.9 million for FY26, up from $16.5 million in FY25, impacting net income substantially.

  • High Debt Levels Post-Acquisition

    Total indebtedness increased from $1.11 billion in FY25 to $4.57 billion in FY26, raising concerns over financial leverage.

  • Dependence on Housing Market Conditions

    The company's performance is closely tied to residential construction markets, which can fluctuate due to economic factors beyond its control.

Management's outlook

The company expects FY27 sales between $5.25 billion and $5.41 billion, with organic growth anticipated in Siding & Trim.

This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.