Net profits down -17% vs FY2024; a Chief Financial Officer (CFO) openly discussing “challenging macro,” and no word of a highly controversial $14 billion merger with U.S. outdoor decking retailer AZEK.
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This was the results commentary James Hardie (ASX:JHX) shareholders were treated to on Wednesday (preliminary final report for the year ended March 31, 2025).
There was, notably, no mention of the fact that James Hardie’s move to pick up AZEK – in a way that has been widely accused of deliberately dodging a shareholder vote – has attracted a lot of short sellers.
While the profit hit is likely to hit James Hardie’s shareholder’s confidence (or vibes overall,) it wasn’t all bad news: Adjusted EBITDA came in at $1.1B (still far less than the $14B it’s paying for AZEK); organic sales growth is predicted for FY26, and, ultimately, the company met guidance.
Of course, there’s a lot that wasn’t immediately addressed.
Nor is the company paying a dividend, it said.
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“We achieved each of our FY25 guidance metrics despite a more challenging macro environment as compared to May of last year, when we initially provided this outlook. In North America, our team delivered a solid fourth quarter,” JHX CFO Rachel Wilson explained in a release today.
The company’s results announcement did, of course, mention AZEK: The word shows up 57 times. But investors didn’t get any admissions of controversy, nor much focus on risk.
“This combination with AZEK is an extraordinary opportunity,” the CEO wrote.
The market, clearly, isn’t so sure.
JHX last traded at $38.49/sh.
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