James Hardie Reports Profit Decline Amid Market Challenges and Philippine Exit

2 min read | February 19, 2025 11:24 AM AEDT | By Team Kalkine Media

James Hardie Reports Profit Decline Amid Market Challenges and Philippine Exit — Image source: Shutterstock

North American Market Weakens

James Hardie’s largest market, the North America Fiber Cement business, struggled amid ongoing weakness, particularly in the multi-family property sector. EBITDA for the segment declined by 8% to AU$251 million, while net sales fell 1% and volumes decreased 3%.

Despite these setbacks, the company made progress in expanding its market share in the single-family new construction and repair and remodel sectors, signaling potential future growth opportunities.

Asia Pacific Performance Impacted by Philippine Exit

The company’s Asia Pacific Fiber Cement business also faced significant challenges, with net sales dropping 13% and volumes plummeting by 28%. However, the average net sales price rose by 20%, mitigating some of the impact.

James Hardie attributed the declines primarily to its decision to discontinue manufacturing and commercial operations in the Philippines. Meanwhile, Australia and New Zealand also recorded minor volume decreases, further weighing on the segment’s overall performance. EBITDA for the Asia Pacific business fell 3% to $40 million.

CEO Remains Optimistic

Despite the financial setbacks, CEO Aaron Erter struck a confident tone about the company’s long-term prospects.

“We delivered strong business and financial results in the third quarter, and our year-to-date performance shows we have a strong handle on our business as we continue to scale the organization and invest to grow profitably,” Erter said

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