[Management View]
James Hardie management emphasized their strategic focus on material conversion opportunities, particularly against vinyl and wood, and highlighted their commitment to driving growth through innovation and partnerships with contractors and homebuilders. The Azek merger is expected to enhance their growth platform, offering significant commercial and cost synergies.

[Outlook]
For FY2026, James Hardie anticipates low single-digit net sales growth in North America, despite a projected mid-single-digit decline in market volumes. The company plans to leverage its strong brand and value proposition to outperform the market. The Azek merger is expected to close soon, driving $500 million in revenue synergies and $125 million in cost synergies over the next three years.

[Financial Performance]
In Q4 FY2025, global net sales were $972 million, down 3% YoY, with adjusted EBITDA at $269 million, a 4% decline. North America saw a 2% revenue decline, while Asia Pacific sales dropped 17% in USD. Europe, however, achieved record sales with a 5% increase in USD.

[Q&A Highlights]
Question 1: Could you split out your internal view of North American R&R and new single-family end markets in FY2026?
Answer: James Hardie expects to outperform the market despite forecasts of mid to high single-digit declines in R&R. They anticipate outperforming in all participating markets.

Question 2: Regarding Azek, what are your top priorities for integration in the first six to twelve months?
Answer: The focus is on people, ensuring the right positions and retaining talent. Clear priorities will be set to achieve commercial synergies.

Question 3: Can you provide more color on recent agreements with large homebuilders?
Answer: Recent agreements are multiyear and include hard siding and trim. The strategy focuses on the top 200 homebuilders, aligning with Azek for future opportunities.

Question 4: What are you seeing in channel inventory levels, and is there a risk of destocking?
Answer: Inventory levels are generally normal. The company is partnering with dealers and contractors to navigate the current environment.

Question 5: How will interior products and multifamily influence the mid-single-digit decline in North American volume?
Answer: Multifamily is expected to be down but not as much as FY2025. Single-family exteriors showed solid growth, while multifamily and interiors were detractors.

Question 6: How have things progressed in the US this quarter?
Answer: The company is cautious due to market uncertainty but is performing to plan.

Question 7: What led to the shortfall in share gains in 2025, and how will you address it?
Answer: Single-family exteriors grew in a down market, but multifamily and interiors saw declines. Strategic initiatives are in place to improve volumes.

Question 8: Why was the 1% ASP realization in North America relatively low, and what are future expectations?
Answer: Multifamily headwinds affected pricing. The company expects positive ASP gains moving forward.

[Sentiment Analysis]
Analysts showed interest in the company's strategic initiatives and integration plans with Azek. Management maintained a confident tone, emphasizing their ability to outperform the market and achieve synergies.

[Quarterly Comparison]
| Metric | Q4 FY2025 | Q4 FY2024 |
|-------------------------|-----------|-----------|
| Global Net Sales | $972M | - |
| Adjusted EBITDA | $269M | - |
| North America Revenue | -2% | - |
| Asia Pacific Sales | -17% USD | - |
| Europe Sales | +5% USD | - |

[Risks and Concerns]
Management anticipates a mid-single-digit decline in North American market volumes for FY2026, marking a fourth consecutive year of declines in large-ticket repair and remodel activity. Cost pressures from raw materials and energy remain a concern, particularly in Europe.

[Final Takeaway]
James Hardie is strategically positioned to navigate market challenges through innovation, strategic partnerships, and the upcoming Azek merger. Despite anticipated market contractions, the company aims to leverage its strong brand and value proposition to achieve growth and profitability. The focus on material conversion opportunities and operational synergies with Azek is expected to drive long-term value creation.