James Hardie Industries Stock

James Hardie Industries plc produces and markets high-performance fiber cement and fiber gypsum building solutions.

The company markets its fiber cement products and systems under the Hardie brand, such as Hardie Plank, Hardie Panel, Hardie Trim, Hardie Backer, Hardie Artisan Siding Hardie Architectural Collection, and other brand names, such as Cemboard, Prevail, Scyon, Linea and Hardie Oblique cladding. The company is also a market leader in the European premium timber frame and dry lining business, especially in Germany, Switzerland and Denmark. The company markets its fiber gypsum and cement-bonded boards under the Fermacell brand and its fire-protection boards under the AESTUVER brand.

The company’s primary geographic markets include the United States of America (the U.S., the U.S.A. or the United States), Australia, Europe, New Zealand and the Philippines.

The company operates through three segments: North America Fiber Cement, Asia Pacific Fiber Cement and Europe Building Products.

The Europe Building Products segment consists of Europe Fiber Cement and Europe Fiber Gypsum. The Asia Pacific Fiber Cement segment consists of the following regions: Australia; New Zealand; and the Philippines.

Products

The company manufactures fiber cement, fiber gypsum and cement bonded boards. The company’s fiber cement building materials includes a wide-range of products for both external and internal use across a broad range of applications, including external applications: siding, cladding, trim, soffit; and internal applications: walls, floors, ceilings. While there are some market specific products, the company’s core fiber cement products, planks and flat panels, are sold across all of the markets in which it operates. The company’s fiber gypsum and cement-bonded boards are used mainly for interior applications, such as dry lining walls, walls in timber frame buildings and flooring solutions. In addition, the company’s cement-bonded boards are used in exterior and industrial applications, as well as for fire protection.

Products Used in External Applications

The company developed a proprietary technology platform that enables it to produce thicker yet lighter-weight fiber cement products that are generally easier to handle than most traditional building products. The company’s fiber cement products provide certain durability and performance advantages leading to improved maintenance, while offering comparable aesthetics to competing products, such as wood and stucco, and superior aesthetics when compared to vinyl siding.

Products Used in Internal Applications

The company’s product range for internal applications provide the same general advantages provided by its products for external applications. In addition, the company’s fiber cement products for internal applications exhibit less movement in response to exposure to moisture and impact damage than many competing products, providing a more consistent and durable substrate on which to install tiles. The company’s ceramic tile underlayment products exhibit better handling and installation characteristics compared to fiberglass mesh cement boards. The company’s fiber gypsum products offer superior stability, fire safety and sound insulation properties compared to engineered wood and gypsum plaster boards. The company’s fiber gypsum flooring solutions offer superior handling properties, especially in the modernization of existing buildings, compared to wet screed solutions.

Significant New Products

In North America, new products released over the last three years include, an expanded ColorPlus Technology offering through the Magnolia Home | James Hardie Collection and the Hardie Architectural Collection.

In the Asia Pacific, the company continues to expand its addressable market by extending its product portfolio in both wood look and non-wood look exteriors. In 2021, the company launched Hardie Fine Texture Cladding in Australia to deliver the modern render look followed by Hardie Brushed Concrete Cladding in April 2023, which are both marketed under the Hardie Architectural Collection. Building on the success of Linea Oblique Weatherboard in New Zealand, the company also introduced the product in Australia in 2022 as Hardie Oblique Cladding to increase design versatility in line with modern design trends.

In Europe, new fiber cement products released over the past three years include Hardie VL Plank, a solution that provides interlocking looks for facades of single family and multi-family homes, as well as the Hardie Architectural Collection for multi-family homes and commercial buildings, and Fermacell Therm25 dry screed elements.

Principal Markets

Fiber Cement

In the U.S. and Canada, the largest application for fiber cement building products is in external siding for the residential building industry.

In the Asia Pacific region, the company principally sells into the Australian, New Zealand and the Philippines markets, with the residential building industry representing the principal market for fiber cement products. The largest applications of fiber cement across the company’s three primary markets are in external applications: siding, cladding, trim, soffit; and internal applications: walls, floors, ceilings.

In Europe, the company’s fiber cement building products are used in both residential and commercial building applications in the form of external siding, soffits and internal tile underlayment for walls and floors.

Fiber Gypsum and Cement-Bonded Boards

The company’s European Fermacell brand products are sold into the residential repair and remodel, commercial and residential new construction markets. The Fermacell brand of products comprise fiber gypsum and cement-bonded boards, two complementary products in the high performance board space, mainly used in timber frame construction, commercial dry lining projects and repair and remodel. Cement bonded boards are also used for several fire protection projects, including tunnels.

The company’s key markets for Fermacell brand products in Europe include Germany, Switzerland, the U.K., Denmark, France, Belgium, the Netherlands and Luxembourg, where it sells its products to residential and commercial new-build, as well as to repair and remodel. In addition, the company’s fire protection AESTUVER boards are sold to projects worldwide.

Sales, Marketing and Distribution

The company’s brand names, customer education in comparative product advantages, differentiated product range and customer service, including technical advice and assistance, provide the basis for its marketing strategy. In May 2021, the company launched It's Possible, a global integrated marketing campaign that seeks to empower homeowners to realize their dream home. The campaign is inclusive of television commercials, programmatic digital, social media, public relations, influencer and dynamic media partnerships, and more.

The company offers its customers support through a specialized sales force and customer service infrastructure in North America, Australia, New Zealand, the Philippines and Europe.

The company’s customer service infrastructure includes inbound customer service support coordinated nationally in each country, and is complemented by outbound telemarketing capability. Within each regional market, the company provides sales and marketing support to building products dealers and lumber yards and also provides support directly to the customers of these distribution channels, principally homebuilders and building contractors.

The company maintains dedicated regional sales management teams in its major sales territories who maintain relationships with national and other major accounts. The company’s various sales forces, which in some instances manage specific product categories, include skilled trades people who provide on-site technical advice and assistance.

In North America, the company sells its exterior fiber cement products for repair and remodel and new residential construction through a combination of distributors, dealers and lumber yards. Where sales are to distributors, they then sell these products to dealers or lumber yards. The company’s interior fiber cement products in North America are typically sold through the large home center retailers and specialist distributors or dealers. The company’s products are distributed across North America primarily by road and, to a lesser extent, by rail.

In Australia and New Zealand, both new construction and repair and remodel products are sold through a combination of distributors, dealers and lumber yards. In the Philippines, a network of thousands of small to medium size retail outlets sell its fiber cement products to consumers, builders and real estate developers and DIY type stores. The physical distribution of the company’s product in each country is primarily by road, rail or sea transport.

In Europe, both new construction and repair and remodel products are primarily sold to builder’s merchants and DIY type stores. These customers then sell the products to applicators, such as dry liners, timber frame companies, smaller applicators and end consumers. The company’s products are distributed across Europe primarily by road and rail and, to a lesser extent, by sea transport.

Despite the fact that distributors and dealers are generally its direct customers, the company also intends to increase primary demand for its products by marketing its products directly to homeowners, architects and builders. The company encourages them to specify and install its products because of the quality and craftsmanship of its products.

Geographic expansion of the company’s fiber cement business has occurred in markets where framed construction is prevalent for residential applications or where there are opportunities to change building practices from masonry to framed construction. With the exception of the company’s major markets, as well as Japan and certain rural areas in Asia, and Eastern Europe, most markets in the world principally utilize masonry construction for external walls in residential construction.

Governmental Regulation

As an Irish plc, the company is governed by the Irish Companies Act 2014 and is also subject to all applicable European Union level legislation. The company operates under the regulatory requirements of numerous jurisdictions and organizations, including the Australian Securities Exchange (ASX), Australian Securities and Investments Commission (ASIC), the New York Stock Exchange (NYSE), the United States Securities and Exchange Commission (SEC), the Irish Takeover Panel and various other rulemaking bodies. The company is incorporated and existing under the laws of Ireland.

History

James Hardie Industries plc was founded in 1888. The company was incorporated in 2010.