Conflicting Signals: Analyzing North America's Market Demand, Volume Growth, and ASP Realizations in Q4 2025

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Financial Performance and Market Conditions:
- James Hardie reported net sales of $972 million globally in Q4, which was 3% below last year's record fourth quarter.
- Despite a challenging macro environment, the company achieved adjusted EBITDA of $269 million, with an adjusted EBITDA margin of 27.6%.
- The decline in sales was due to softer end market demand and increased raw material costs.

North American Market Trends:
- North American volumes were down 3% year-over-year due to challenges in multifamily and interior products.
- However, the exterior products segment showed encouraging growth, reflecting the company's long-term strategic actions.
- The decline in multifamily and interiors offset the growth in single-family new construction and repair and remodel.

Material Conversion Opportunities:
- James Hardie achieved 2.95 billion standard feet of volume in North America, within their guided range, despite a softer market.
- The material conversion strategy in vinyl and wood substrates was successful, supported by innovative products like ColorPlus.
- Strategic partnerships, especially with major homebuilders, enhanced the company's position in material conversion.

AZEK Acquisition and Synergies:
- James Hardie announced a combination with The AZEK Company, creating a leading growth platform in building products.
- The transaction is expected to deliver at least $500 million of baseline revenue synergies and approximately $125 million of cost synergies.
- The acquisition is intended to accelerate growth and expand into the outdoor living category, enhancing the value proposition.