JHX Filings — James Hardie Industries Plc - FilingSpy
JHX
James Hardie Industries Plc
A global maker of home exteriors and outdoor living products. Its fiber cement siding under the Hardie brand, plus decking, railing, and trim sold as TimberTech, AZEK, and Versatex, keep homes sturdy and dry across dozens of countries. Founded in 1888 when Scottish immigrant James Hardie opened a Melbourne business importing animal hides and tanning oils, the company shifted to building materials after he discovered "fibro-cement" on a London trip in 1903. In July 2025 it absorbed AZEK, folding that company's outdoor-living brands into its own.
Free cash flow more than doubled to $254.2M as the AZEK acquisition drove revenue up 64%.
The AZEK acquisition reshaped the quarter, adding $397.1M in and two new segments. Net sales rose 64% to $1,474.6M and grew 67% to $104.3M, while more than doubled to $254.2M as fell. The combined business is generating cash, but $59.1M in pushed the new Deck, Rail & Accessories to an operating loss.
Key takeaways
more than doubled to $254.2M, up from $122.1M a year ago, as rose 66% to $344.0M and declined.
The AZEK acquisition contributed $397.1M to , which rose 64% to $1,474.6M, with also reported in Siding & Trim, Australia & New Zealand, and Europe.
declined 0.2 percentage points to 37.2%, as $16.0M in from the AZEK deal offset higher margins in the Siding & Trim and Australia & New Zealand segments.
Section summaries
Management's Discussion and Analysis
Q1 FY27 net sales rose 64% to $1,474.6M driven by the AZEK acquisition, while GAAP net income grew 67% to $104.3M.
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Consolidated increased 64% to $1,474.6M, with the AZEK acquisition contributing $397.1M and in Siding & Trim, Australia & New Zealand, and Europe.
The new Deck, Rail & Accessories posted a $3.3M operating loss on $305.1M in sales, weighed by $59.1M in and $5.2M in restructuring charges.
SG&A expenses rose 89% to $295.4M, driven by $61.6M in AZEK-related , partially offset by lower labor costs and professional fees.
Gross debt fell to $4,306.3M after the company redeemed $400M in senior unsecured notes, while liquidity stood at $289.9M in cash and $843.2M available under the Revolving Facility.
What changed
The $47.9M and $40.0M in flagged in FY26 as a near-term margin drag have begun to roll off; held nearly flat at 37.2%, suggesting the underlying profitability of the combined business is emerging as those acquisition-related costs fade.
Legacy North America fiber cement volume, which declined for two consecutive years, was not called out as a this quarter, with reported in Siding & Trim alongside the AZEK contribution.
declined from the elevated $422.2M level in FY25, allowing a larger share of to convert to , which more than doubled to $254.2M.
The $4.57B debt load from the AZEK acquisition was reduced by $400M through a redemption of senior unsecured notes, bringing gross debt to $4,306.3M.
What to watch
Whether the Deck, Rail & Accessories can move toward breakeven as the $59.1M in quarterly persists, or whether the operating loss of $3.3M widens when seasonal demand softens.
The trajectory of now that the has largely passed, specifically whether the 37.2% level can be sustained or improved as acquisition-related costs continue to roll off.
generation relative to the $4.3B debt load, particularly whether the company can sustain the $254.2M quarterly run rate and continue deleveraging after the $400M note redemption.
Any development in the securities class actions disclosed in the FY26 10-K, which remain unresolved and for which no reserve has been recorded.
declined 0.2 ppts to 37.2% as $16.0M in intangible from the AZEK deal offset higher margins in Siding & Trim and Australia & New Zealand.
SG&A rose 89% to $295.4M, driven by $61.6M in AZEK-related intangible , partially offset by lower labor costs and professional fees.
The new Deck, Rail & Accessories posted an operating loss of $3.3M on $305.1M in sales, weighed by $59.1M in intangible and $5.2M in restructuring charges.
increased 66% to $344.0M, and more than doubled to $254.2M, supported by higher and lower .
Gross debt fell to $4,306.3M after redeeming $400M in senior unsecured notes, while liquidity remained strong with $289.9M in cash and $843.2M available under the Revolving Facility.
Quantitative and Qualitative Disclosures About Market Risk
We have operations in foreign countries and, as a result, are exposed to foreign currency exchange rate risk inherent in purchases, sales, assets and liabilities denominated in currencies other than the U.S. dollar. We also are exposed to interest rate risk associated with our l…
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We have operations in foreign countries and, as a result, are exposed to foreign currency exchange rate risk inherent in purchases, sales, assets and liabilities denominated in currencies other than the U.S. dollar. We also are exposed to interest rate risk associated with our long-term debt, and commodity price risk relative to changes in prices of commodities we use in production.
Periodically, interest rate swaps and forward exchange contracts are used to manage market risks and reduce exposure resulting from fluctuations in interest rates and foreign currency exchange rates. Our policy is to enter into derivative instruments solely to mitigate risks in our business and not for trading or speculative purposes. There can be no assurance that we will be successful in these mitigation strategies or that fluctuation in interest rates, commodity prices and foreign currency exchange rates will not have a material adverse effect on our financial position, liquidity, results of operations and cash flows.
There have been no material changes to the information provided in Part II, Item 7A of our Annual Report on Form 10-K for the fiscal year ended March 31, 2026.
The information required by this Item is incorporated by reference from Note 11, “Commitments and Contingencies” in the Notes to the unaudited Condensed Consolidated Financial Statements included in Part I, Item 1 of this Form 10-Q.
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The information required by this Item is incorporated by reference from Note 11, “Commitments and Contingencies” in the Notes to the unaudited Condensed Consolidated Financial Statements included in Part I, Item 1 of this Form 10-Q.
There have been no material changes to the risk factors previously disclosed in Part I, Item 1A, of our Annual Report on Form 10-K for the fiscal year ended March 31, 2026.
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There have been no material changes to the risk factors previously disclosed in Part I, Item 1A, of our Annual Report on Form 10-K for the fiscal year ended March 31, 2026.