James Hardie shares dive on FY25 guidance
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More news: James Hardie shares plunged at market open as the building materials manufacturer's FY25 guidance came in below analysts' consensus.
Shares were down 11.4% to $48.52 by 10:35am AEST.
What they said: RBC Capital Markets analyst Matthew McKellar said: "While FQ424 results were in line with our estimate and only modestly below consensus, we think adjusted net income guidance for FQ125 and FY2025 that is below our estimate and consensus is likely to weigh on James Hardie's shares in trading today".
"At the mid-point of its range, the company is guiding for North American volumes to be approximately flat year-over-year," he said.
James Hardie posts FY growth amid 'uncertain' housing market
The news: Building materials manufacturer James Hardie posted a record result for the fourth quarter, but warned of an "uncertain" global housing market.
The numbers: James Hardie's full-year adjusted EBITDA rose 18% year on year to USD1.125 billion ($1.7 billion). Net sales lifted 4% compared to the prior corresponding period, as adjusted net income increased 17% to USD707.5 million.
The group provided adjusted net income guidance for FY25 between USD630 million and USD700 million. It noted that it expects to spend between USD500 million and USD550 million in capital expenditures over the next financial year.
The context: The Dublin-based company is dual-listed on the ASX and New York Stock Exchange, and said the outlook for housing markets it participates in globally continues to remain uncertain. James Hardie's largest market, North America, is expected to report between a decrease of 6% and a growth of 3% in calendar year 2024 compared to calendar year 2023.
What they said: James Hardie CEO Aaron Erter said: "I believe our fiscal year results are proof points that we are accelerating through this cycle and taking share".
"Our team is focused on maintaining momentum and consistency to deliver strong financial results again in fiscal year 2025 as highlighted by our guidance range provided today," he said.
The source: ASX announcement
