James Hardie Industries Announces Record-Breaking Q2 FY2024 Results

James Hardie Industries (ASX: JHX) has reported remarkable second-quarter results for fiscal year 2024, ending on September 30, 2023. Key highlights include:

• Global Net Sales: James Hardie achieved AU$998.8 million in global net sales, showcasing robust growth.
• Record Adjusted EBITDA: The company recorded a staggering AU$285.5 million in adjusted EBITDA, with a margin of 28.6%.
• Record Adjusted EBIT: James Hardie also achieved AU$240.0 million in adjusted EBIT, with a margin of 24.0%.
• Record Net Income: The company's adjusted net income reached a record-breaking AU$178.9 million, marking a 2% increase.
• Earnings Per Share: The adjusted diluted earnings per share stood at AU$0.41, reflecting a 3% increase.
• Cash Flow Surge: A significant milestone was the company's first-half operating cash flow, which soared to AU$459.1 million, a remarkable 74% increase.

James Hardie CEO Aaron Erter expressed confidence in the results, emphasizing their strategic focus on safety, customer partnerships, decisive management, and controlling operational aspects. Erter noted that these principles underpinned a strong first half and a record-setting quarterly adjusted net income.

Segment Results

James Hardie's various segments displayed diverse performances:

• North America Fiber Cement Segment: Despite a 2% decrease in net sales to AU$734.4 million, the segment achieved an impressive 9% increase in EBIT to AU$232.7 million, along with a record margin of 31.7%.
• Asia Pacific Fiber Cement Segment: This segment saw a 7% net sales increase to a record AU$225.1 million, with a growth in EBIT to A$67.9 million and an expanded margin of 30.2%.
• Europe Building Products Segment: The segment's net sales increased by 5%, primarily due to strategic price increases and growth in High Value Products. The segment achieved EBIT of €11.5 million and an expanded margin of 10.7%.

Capital Resources and Buyback Program

James Hardie's strong financial position was evident through its impressive operating cash flow. The company's Chief Financial Officer, Rachel Wilson, highlighted a leverage ratio of 0.79x and AU$608.0 million of liquidity. A new AU$250 million share buyback program was announced to be completed over the next 12 months.

Sustainability Commitment

James Hardie emphasized its commitment to sustainability, releasing its 2023 Sustainability Report in August and setting ambitious ESG goals.

Outlook and Earnings Guidance

The company acknowledged the uncertain housing market outlook and provided guidance for the third quarter of fiscal year 2024, including an expected adjusted net income in the range of AU$165 million to AU$185 million. For the full fiscal year 2024, James Hardie expects to spend approximately AU$550 million in capital expenditures.

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