James Hardie Industries plc 10-Q

ITEM 1. FINANCIAL STATEMENTS (Unaudited) James Hardie Industries plc Condensed Consolidated Balance Sheets (Millions of U.S. dollars) (Unaudited) June 30, 2026 March 31, 2026 Assets Current assets: Cash and cash equivalents $ 289.9 $ 269.2 Restricted cash and cash equivalents 32.1 75.2 Restricted short-term investments — Asbestos 212.9 198.5 Accounts and other receivables, net 499.6 517.3 Inventories 612.1 635.7 Prepaid expenses and other current assets 101.8 120.0 Assets held for sale 10.8 10.9 Total current assets 1,759.2 1,826.8 Property, plant and equipment, net 3,051.4 3,084.6 Operating lease right-of-use assets 130.3 133.4 Finance lease right-of-use assets 97.7 100.8 Goodwill 4,775.8 4,780.4 Intangible assets, net 3,260.5 3,340.1 Deferred income taxes 71.3 73.3 Deferred income taxes — Asbestos 276.3 282.5 Other assets 70.9 66.7 Total assets $ 13,493.4 $ 13,688.6 Liabilities and Shareholders’ Equity Current liabilities: Accounts payable and accrued liabilities $ 699.6 $ 712.5 Accrued payroll and employee benefits 124.7 167.9 Operating lease liabilities 33.6 32.9 Finance lease liabilities 6.3 5.6 Long-term debt, current portion 43.8 43.8 Accrued product warranties 11.1 10.7 Income taxes payable 26.5 13.1 Asbestos liability 128.8 128.3 Other liabilities 35.1 42.6 Total current liabilities 1,109.5 1,157.4 Long-term debt 4,232.9 4,491.2 Deferred income taxes 426.3 399.7 Operating lease liabilities 109.5 114.3 Finance lease liabilities 95.9 97.9 Accrued product warranties 53.9 53.3 Asbestos liability 851.4 880.3 Other liabilities 73.4 69.0 Total liabilities 6,952.8 7,263.1 Commitments and contingencies (Note 11) Shareholders’ equity: Common stock, Euro 0.59 par value, 2.0 billion shares authorized; 580,354,409 shares issued and outstanding at June 30, 2026 and 580,174,308 shares issued and outstanding at March 31, 2026 326.8 326.7 Additional paid-in capital 4,329.4 4,315.4 Retained earnings 1,934.0 1,829.7 Accumulated other comprehensive loss ( 49.6 ) ( 46.3 ) Total shareholders’ equity 6,540.6 6,425.5 Total liabilities and shareholders’ equity $ 13,493.4 $ 13,688.6 The accompanying notes are an integral part of these condensed consolidated financial statements. 2 Table of Contents James Hardie Industries plc Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) Three Months Ended June 30, (Millions of U.S. dollars, except per share data) 2026 2025 Net sales $ 1,474.6 $ 899.9 Cost of goods sold 925.9 563.0 Gross profit 548.7 336.9 Selling, general and administrative expenses 295.4 156.1 Research and development expenses 15.4 12.1 Restructuring expenses 5.2 — Acquisition related expenses 16.6 29.4 Asbestos adjustments ( 1.6 ) 0.7 Operating income 217.7 138.6 Interest, net 61.5 37.8 Other (income) expense, net ( 1.1 ) 11.1 Income before income taxes 157.3 89.7 Income tax expense 53.0 27.1 Net income $ 104.3 $ 62.6 Income per share: Basic $ 0.18 $ 0.15 Diluted $ 0.18 $ 0.15 Weighted average common shares outstanding (Millions): Basic 580.3 429.9 Diluted 584.3 431.1 Comprehensive income, net of tax: Net income $ 104.3 $ 62.6 Currency translation adjustments ( 8.6 ) 24.3 Cash flow hedges 5.3 — Comprehensive income $ 101.0 $ 86.9 The accompanying notes are an integral part of these condensed consolidated financial statements. 3 Table of Contents James Hardie Industries plc Condensed Consolidated Statements of Changes in Shareholders’ Equity (Unaudited) Three Months Ended June 30, 2026 (Millions of U.S. dollars) Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Loss Total Balances as of March 31, 2026 $ 326.7 $ 4,315.4 $ 1,829.7 $ ( 46.3 ) $ 6,425.5 Net income — — 104.3 — 104.3 Other comprehensive loss — — — ( 3.3 ) ( 3.3 ) Share-based compensation — 12.0 — — 12.0 Issuance of common stock, net of shares withheld for taxes 0.1 1.0 — — 1.1 Exercise of vested stock options — 1.0 — — 1.0 Balances as of June 30, 2026 $ 326.8 $ 4,329.4 $ 1,934.0 $ ( 49.6 ) $ 6,540.6 Three Months Ended June 30, 2025 (Millions of U.S. dollars) Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Loss Total Balances as of March 31, 2025 $ 222.1 $ 271.9 $ 1,725.7 $ ( 58.2 ) $ 2,161.5 Net income — — 62.6 — 62.6 Other comprehensive income — — — 24.3 24.3 Share-based compensation — 6.9 — — 6.9 Issuance of common stock, net of shares withheld for taxes — 1.0 — — 1.0 Balances as of June 30, 2025 $ 222.1 $ 279.8 $ 1,788.3 $ ( 33.9 ) $ 2,256.3 The accompanying notes are an integral part of these condensed consolidated financial statements. 4 Table of Contents James Hardie Industries plc Condensed Consolidated Statements of Cash Flows (Unaudited) Three Months Ended June 30, (Millions of U.S. dollars) 2026 2025 Cash Flows from Operating Activities Net income $ 104.3 $ 62.6 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 168.8 56.5 Lease expense 12.5 8.3 Deferred income taxes 29.0 13.8 Share-based compensation 12.0 6.9 Asbestos adjustments ( 1.6 ) 0.7 Non-cash restructuring expenses 1.7 — Non-cash interest expense 2.9 33.6 Other, net 7.3 22.1 Changes in operating assets and liabilities: Accounts and other receivables 56.0 77.7 Inventories 26.0 ( 26.8 ) Operating lease assets and liabilities, net ( 14.3 ) ( 7.9 ) Prepaid expenses and other assets ( 20.6 ) ( 16.9 ) Insurance receivable — Asbestos 0.8 0.9 Accounts payable and accrued liabilities ( 10.8 ) 33.3 Claims and handling costs paid — Asbestos ( 33.1 ) ( 29.3 ) Income taxes payable 13.6 4.6 Other accrued liabilities and interest ( 10.5 ) ( 33.2 ) Net cash provided by operating activities $ 344.0 $ 206.9 Cash Flows from Investing Activities Purchases of property, plant and equipment $ ( 89.8 ) $ ( 103.2 ) Capitalized interest — ( 2.1 ) Purchase of restricted investments — Asbestos ( 76.1 ) ( 56.6 ) Proceeds from restricted investments — Asbestos 62.3 56.6 Net cash used in investing activities $ ( 103.6 ) $ ( 105.3 ) Cash Flows from Financing Activities Proceeds from senior secured notes $ — $ 1,700.0 Proceeds from revolving facility 530.0 — Repayments of term loans ( 10.9 ) ( 290.6 ) Repayments of revolving facility ( 380.0 ) — Repayment of senior unsecured notes ( 400.0 ) — Debt issuance costs paid — ( 6.3 ) Proceeds from exercise of vested stock options 1.0 — Repayment of finance lease obligations ( 1.4 ) ( 0.3 ) Cash paid for shares withheld for taxes ( 0.1 ) — Net cash (used in) provided by financing activities $ ( 261.4 ) $ 1,402.8 Effects of exchange rate changes on cash and cash equivalents, restricted cash and restricted cash — Asbestos $ ( 1.4 ) $ 1.8 Net (decrease) increase in cash and cash equivalents, restricted cash and restricted cash — Asbestos ( 22.4 ) 1,506.2 Cash and cash equivalents, restricted cash and restricted cash — Asbestos at beginning of period 344.4 605.6 Cash and cash equivalents, restricted cash and restricted cash — Asbestos at end of period $ 322.0 $ 2,111.8 Non-Cash Investing and Financing Activities Capital expenditures incurred but not yet paid $ 27.1 $ 19.6 Non-cash ROU assets obtained in exchange for new lease liabilities $ 9.4 $ 2.7 Supplemental Disclosure of Cash Flow Activities Cash paid for interest $ 41.2 $ 4.6 The accompanying notes are an integral part of these condensed consolidated financial statements. 5 Table of Contents James Hardie Industries plc Notes to Condensed Consolidated Financial Statements (Unaudited) 1. Organization and Significant Accounting Policies Nature of Operations James Hardie Industries plc (“JHI plc”) and its direct and indirect wholly-owned subsidiaries and variable interest entity (“VIE”) are collectively referred to as “James Hardie”, or the “Company”, “we”, “our” or “us”. The Company is a leading provider of exterior home and outdoor living solutions, with a portfolio that includes fiber cement siding and trim, fiber gypsum interior walls and floors, and composite and PVC decking and railing products, primarily in the United States, Australia, Europe and New Zealand. On July 1, 2025, the Company completed its acquisition of The AZEK Company Inc. (“AZEK”), an industry-leading designer and manufacturer of low maintenance and environmentally sustainable outdoor living products, with manufacturing and recycling facilities in the United States. Basis of Presentation The Company operates on a fiscal year ending March 31; the term “$” refers to U.S. dollars; the term “A$” refers to Australian dollars. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the U.S. generally accepted accounting principles (“GAAP”) for interim financial information, and in management's opinion, includes all adjustments, consisting of only normal and recurring adjustments, necessary for the fair statement of the Company's financial position, results of operations and cash flows for the interim periods presented. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. Interim financial results are not necessarily indicative of results anticipated for the full fiscal year or any other period. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto, included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2026 (“2026 Form 10-K”) from which the prior year balance sheet information herein was derived. The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expense, and related disclosures. Actual results could differ from those estimates. The Company has recorded on its condensed consolidated balance sheets certain foreign assets and liabilities, that are denominated in foreign currencies and subject to translation or remeasurement into U.S. dollars at each reporting date under the applicable accounting guidance. Unless otherwise noted, the Company converts foreign currency denominated assets and liabilities into U.S. dollars at the spot rate at the end of the reporting period; while revenues and expenses are converted using an average exchange rate for the period. Certain prior period amounts have been reclassified to conform to the current period presentation. On the Condensed Consolidated Balance Sheets, Restricted cash and cash equivalents — Asbestos has been reclassified to Restricted cash and cash equivalents, Insurance receivable — Asbestos and Workers’ compensation — Asbestos have been reclassified to Prepaid expenses and other current assets, Other assets, or Other liabilities depending on their respective category. Summary of Significant Accounting Policies There have been no material changes in the Company’s significant accounting policies that were disclosed in the 2026 Form 10-K. 6 Table of Contents Restricted Cash and Cash Equivalents The following table provides a reconciliation of Cash and cash equivalents and Restricted cash and cash equivalents reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows: June 30, March 31, (Millions of U.S. dollars) 2026 2026 Cash and cash equivalents $ 289.9 $ 269.2 Restricted cash and cash equivalents 5.0 5.0 Restricted cash and cash equivalents — Asbestos 27.1 70.2 Total $ 322.0 $ 344.4 Restricted cash and cash equivalents relates to letters of credit with insurance companies, which restrict the cash from use for general corporate purposes. Restricted cash and cash equivalents — Asbestos is restricted to the settlement of asbestos claims and for the payment of the operating costs of Asbestos Injuries Compensation Fund (“AICF”). Earnings Per Share Basic earnings per share (“EPS”) is calculated using net income divided by the weighted average number of common shares outstanding during the period. Diluted EPS is similar to basic EPS except that the weighted average number of common shares outstanding is increased to include the number of additional common shares calculated using the treasury stock method that would have been outstanding if the dilutive potential common shares, such as stock options and restricted stock units, had been issued. The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended June 30, (Millions of U.S. dollars and shares, except per share data) 2026 2025 Net income $ 104.3 $ 62.6 Basic common shares outstanding 580.3 429.9 Dilutive effect of stock awards 4.0 1.2 Diluted common shares outstanding 584.3 431.1 Net income per share of common stock: Basic $ 0.18 $ 0.15 Diluted $ 0.18 $ 0.15 There were 0.2 million of potential common shares which would be considered anti-dilutive for the three months ended June 30, 2026. There were no potential common shares which would be considered anti-dilutive for the three months ended June 30, 2025. Potential common shares of 1.6 million and 0.8 million for the three months ended June 30, 2026 and 2025 respectively, have been excluded from the calculation of diluted common shares outstanding as they are considered contingent shares which are not expected to vest. Upon the completion of the acquisition of AZEK, the Company issued 148,861,787 CHESS Depositary Units of Foreign Securities (“CUFS”), which represent underlying shares of our ordinary shares, also referred to as our common shares or common stock (“Common Stock” or “Common Shares”), on July 1, 2025. 7 Table of Contents Accounting Standards Issued But Not Yet Adopted In November 2024, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2024-03, Disaggregation of Income Statement Expenses (Subtopic 220-40). The amendments in this standard require disaggregation of specific expense categories in the notes to the financial statements and a qualitative description of the remaining expense amounts not separately disaggregated. These amendments are effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. The Company plans to adopt ASU No. 2024-03 starting with its annual report for the fiscal year ending March 31, 2028 and is currently evaluating the impact of the guidance to the consolidated financial statements. 2. Business Combination On July 1, 2025 (the “Acquisition Date”), the Company completed the acquisition of AZEK which became a wholly-owned subsidiary of the Company. The business combination was accounted for under the acquisition method of accounting. Under such guidance, the Company measured identifiable assets acquired, liabilities assumed and any noncontrolling interests in the acquiree at their fair values as of the Acquisition Date. The Company’s accounting for the acquisition is final. The following table summarizes the final allocation of the purchase price to the identifiable assets acquired and liabilities assumed as of the Acquisition Date. (Millions of U.S. dollars) Assets Acquired and Liabilities Assumed Cash and cash equivalents $ 330.1 Accounts and other receivables 102.4 Inventories 280.0 Prepaid expenses and other current assets 21.7 Property, plant and equipment 838.2 Intangible assets 3,370.0 Other assets - non-current 135.1 Total assets acquired $ 5,077.5 Accounts payable and accrued liabilities $ 211.2 Other liabilities - current 74.0 Deferred tax liabilities, net 813.0 Other liabilities - non-current 158.1 Total liabilities assumed $ 1,256.3 Net assets acquired $ 3,821.2 Amount of goodwill recognized $ 4,572.3 Total consideration transferred $ 8,393.5 Goodwill of $ 4,572.3 million arising from the acquisition is calculated as the excess of the purchase price over the net assets acquired and is attributable to expected synergies, expanded market opportunities, and enhanced delivery network capabilities. Goodwill related to this acquisition is expected to be nondeductible for tax purposes. See Note 6, “Goodwill and Other Intangible Assets” for more information. During the three months ended June 30, 2026 and 2025, the Company recorded acquisition-related costs in the condensed consolidated statements of operations and comprehensive income statement of $ 16.6 million and $ 29.4 million, respectively. For the three months ended June 30, 2026 all costs incurred 8 Table of Contents were integration related costs and for the three months ended June 30, 2025 all costs incurred were transaction related costs. Supplemental Pro Forma Results of Operations The following unaudited supplemental pro forma financial information presents the Company’s consolidated results of operations as if the acquisition had been completed on April 1, 2024, but using the fair values of the assets acquired and liabilities assumed as of the closing date of the acquisition. This pro forma presentation does not include any impact of transaction synergies. The pro forma results are not necessarily indicative of our results of operations that actually would have been achieved had the acquisition been completed on the assumed date, nor are they necessarily indicative of future results. Three Months Ended June 30, (Millions of U.S. dollars) 2025 (Unaudited) Revenue $ 1,316.5 Net income $ 72.5 The pro forma results include adjustments directly attributable to the business combination. The adjustments relate to purchase accounting, primarily amortization of intangible assets and the impact of the acquisition financing. 3. Revenues The Company's presentation of revenue by reportable segment most reasonably depicts how the nature, amount, timing and uncertainty of the Company's revenue and cash flows are affected by economic and market-specific factors. The Company recognizes revenues when the requisite performance obligation has been met, that is, when the Company transfers control of its products to customers per the arranged shipping terms, which may be at time of shipment or upon delivery depending on the terms of the underlying contract. The following represents the Company’s disaggregated revenues: Three Months Ended June 30, (Millions of U.S. dollars) 2026 2025 Siding & Trim $ 859.8 $ 641.8 Deck, Rail & Accessories 305.1 — Australia & New Zealand 153.3 121.6 Europe 156.4 136.5 Total $ 1,474.6 $ 899.9 The process by which the Company recognizes revenues is similar across each of the Company's reportable segments. The Company records estimated reductions in sales for customer rebates and discounts including volume, promotional, cash and other discounts. Rebates and discounts are recorded in Net sales based on management’s best estimate when products are sold. The estimates are based on historical experience for similar programs and products, and contractual obligations. Management reviews these rebates and discounts on an ongoing basis and the related accruals are adjusted, if necessary, as additional information becomes available. 9 Table of Contents 4. Inventories Inventories consist of the following components: June 30, March 31, (Millions of U.S. dollars) 2026 2026 Finished goods $ 433.7 $ 453.0 Work-in-process 51.0 53.5 Raw materials and supplies 144.0 145.1 Provision for obsolete finished goods and raw materials ( 16.6 ) ( 15.9 ) Total $ 612.1 $ 635.7 5. Property, Plant and Equipment Property, plant and equipment consist of the following components: June 30, March 31, (Millions of U.S. dollars) 2026 2026 Land $ 122.8 $ 121.7 Buildings 1,040.4 995.2 Machinery and equipment 3,395.8 3,203.3 Construction in progress 376.3 555.1 Property, plant and equipment, at cost 4,935.3 4,875.3 Less accumulated depreciation ( 1,883.9 ) ( 1,790.7 ) Property, plant and equipment, net $ 3,051.4 $ 3,084.6 Depreciation expense for the three months ended June 30, 2026 and 2025 was $ 87.6 million and $ 55.2 million, respectively. 6. Goodwill and Other Intangible Assets Goodwill The following are the changes in the carrying value of goodwill: (Millions of U.S. dollars) Europe Siding & Trim Deck, Rail & Accessories Total Balance - March 31, 2026 $ 205.0 $ 1,141.2 $ 3,434.2 $ 4,780.4 Foreign exchange impact ( 1.5 ) — — ( 1.5 ) Adjustments to Acquisition of The AZEK Company — ( 0.8 ) ( 2.3 ) ( 3.1 ) Balance - June 30, 2026 $ 203.5 $ 1,140.4 $ 3,431.9 $ 4,775.8 Intangible Assets The following are the net carrying amount of indefinite lived intangible assets other than goodwill: June 30, March 31, (Millions of U.S. dollars) 2026 2026 Trade names $ 117.3 $ 118.2 Other 7.6 7.4 Total $ 124.9 $ 125.6 10 Table of Contents The following are the net carrying amount of amortizable intangible assets: June 30, 2026 (Millions of U.S. dollars) Lives in Years Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer Relationships 2 to 18 $ 2,880.0 $ ( 228.4 ) $ 2,651.6 Trade Names 5 to 15 330.0 ( 26.7 ) 303.3 Technology 10 210.0 ( 29.3 ) 180.7 Total $ 3,420.0 $ ( 284.4 ) $ 3,135.6 March 31, 2026 (Millions of U.S. dollars) Lives in Years Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer Relationships 2 to 18 $ 2,880.3 $ ( 165.8 ) $ 2,714.5 Trade Names 5 to 15 330.0 ( 19.6 ) 310.4 Technology 10 210.0 ( 20.4 ) 189.6 Total $ 3,420.3 $ ( 205.8 ) $ 3,214.5 The amortization of intangible assets was $ 78.9 million and $ 1.3 million and for the three months ended June 30, 2026 and 2025, respectively. As of June 30, 2026, the remaining weighted average amortization period for acquired intangible assets was 16.4 years. 7. Debt The Company’s debt obligations are as follows: June 30, March 31, (Millions of U.S. dollars) 2026 2026 Secured debt: 5.875 % Senior notes due 2031 $ 700.0 $ 700.0 6.125 % Senior notes due 2032 1,000.0 1,000.0 Revolving Facility 1 150.0 — Term A-1 Facility 1 , due 2028 750.0 750.0 Term A-2 Facility 1 , due 2030 1,706.3 1,717.2 Unsecured debt: 5.000 % Senior notes due 2028 — 400.0 Unamortized debt issuance costs ( 29.6 ) ( 32.2 ) Total debt 4,276.7 4,535.0 Less current portion ( 43.8 ) ( 43.8 ) Total Long-term debt $ 4,232.9 $ 4,491.2 Weighted average interest rate of total debt 5.5 % 5.5 % Fair value of Senior unsecured notes (Level 1) $ — $ 395.0 Fair value of Senior secured notes (Level 1) $ 1,706.8 $ 1,685.5 ____________ 1. As of June 30, 2026, the carrying value of the Company's senior secured credit facilities (the “Credit Facilities”) of $ 2,606.3 million approximates fair value, as the interest rate is variable and reflects current market rates. 11 Table of Contents Debt Facilities - Terminated In June 2026, the Company redeemed its $ 400 million senior unsecured notes due 2028 using cash on hand as well as a draw on its Revolving Facility, and the remaining associated debt issuance costs of $ 1.0 million were written off to interest expense. Guarantees and Compliance As of June 30, 2026, the Company was in compliance with all of its covenants contained in the indenture governing the senior secured notes and the credit agreement governing the Credit Facilities. For additional information regarding such indenture and credit agreement, including a summary of their terms, see Note 8, “Debt”, to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2026. Off Balance Sheet Arrangements As of June 30, 2026, the Company had $ 12.0 million of issued but undrawn letters of credit and bank guarantees, of which $ 6.8 million is supported under the Revolving Facility. These letters of credit and bank guarantees relate to various operational matters including insurance, performance bonds and other items. As of June 30, 2026, the Company had $ 150.0 million outstanding borrowings under the Revolving Facility under the Credit Facility, leaving the Company with $ 843.2 million of available borrowing capacity under the Revolving Facility. 8. Asbestos The following is a detailed rollforward of the Net Unfunded Amended and Restated Final Funding Agreement (“AFFA”) liability, net of tax, for the three months ended June 30, 2026: (Millions of U.S. dollars) Asbestos Liability Insurance Receivables Restricted Cash and Investments Other Assets and Liabilities Net Unfunded AFFA Liability Deferred Tax Assets Income Tax Payable Net Unfunded AFFA Liability, net of tax Opening Balance - March 31, 2026 $ ( 1,008.6 ) $ 24.3 $ 268.7 $ 0.2 $ ( 715.4 ) $ 282.5 $ 40.2 $ ( 392.7 ) Asbestos claims paid 32.8 — ( 32.8 ) — — — — — AICF claims-handling costs incurred (paid) 0.3 — ( 0.3 ) — — — — — AICF operating costs paid - non claims-handling — — ( 0.6 ) — ( 0.6 ) — — ( 0.6 ) Insurance recoveries — ( 0.8 ) 0.8 — — — — — Movement in income tax payable — — — — — ( 6.8 ) ( 34.8 ) ( 41.6 ) Other movements — — 2.4 0.8 3.2 ( 0.7 ) ( 0.1 ) 2.4 Effect of foreign exchange ( 4.7 ) 0.2 1.8 — ( 2.7 ) 1.3 1.2 ( 0.2 ) Closing Balance - June 30, 2026 $ ( 980.2 ) $ 23.7 $ 240.0 $ 1.0 $ ( 715.5 ) $ 276.3 $ 6.5 $ ( 432.7 ) AICF Funding During fiscal year 2027, the Company will contribute A$ 128.2 million to AICF, excluding interest, in quarterly installments. The first payment of A$ 32.1 million was made on July 1, 2026. For the three months ended June 30, 2026, the Company did not provide financial or other support to AICF that it was not previously contractually required to provide. 12 Table of Contents Restricted Investments AICF invests its excess cash in time deposits, which are classified as held to maturity (“HTM”) investments and the carrying value materially approximates the fair value for each investment. The following table represents the investments outstanding as of June 30, 2026: Date Invested Maturity Date Interest Rate A$ Millions April 2026 April 7, 2027 5.38 % 110.0 January 2026 January 27, 2027 4.78 % 70.0 October 2025 October 16, 2026 4.14 % 70.0 July 2025 July 24, 2026 4.14 % 60.0 9. Derivative Instruments In May 2025, the Company entered into an interest rate swap (“Swap”) agreement to manage interest rate risk related to the Company’s Term Facilities by swapping variable interest at a rate based on SOFR with a fixed rate of 3.79 %. The Swap has a notional amount of $ 1,000.0 million and will expire on June 30, 2028. For additional information regarding such credit agreement, including a summary of their terms, see Note 8, “Debt”, to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2026. For the three months ended June 30, 2025, the Swap did not meet the requirements for hedge designation and the Company recorded a loss of $ 11.6 million in Other (income) expense, net . On July 1, 2025, the Company met the requirements to designate the Swap as a cash flow hedge. The fair value of the Swap is estimated by using a valuation model based on observable market data, including yield curves. The gain (loss) is recorded in Accumulated other comprehensive loss and then reclassified into Interest, net in the same period in which the hedged transaction affects earnings. As of June 30, 2026, the Company expects to reclass approximately $ 2.3 million ($ 1.7 million after-tax) as a decrease to interest expense in the next 12 months. The fair value of the Swap and classification on the condensed consolidated balance sheets is as follows: Fair Value as of (Millions of U.S. dollars) Fair Value Hierarchy Balance Sheet Location June 30, 2026 March 31, 2026 Interest rate swap Level 2 Other non-current assets (Other current liabilities) $ 3.0 $ ( 4.7 ) Refer to Note 13, “Accumulated Other Comprehensive Loss” for further details of the effect of derivative instruments. 10. Income Taxes Income taxes payable represents taxes currently payable which are computed at statutory income tax rates applicable to taxable income derived in each jurisdiction in which the Company conducts business. During the three months ended June 30, 2026, the Company received refunds, net of tax payments of $ 1.8 million. Income tax expense differs from the statutory rate primarily due to the Company’s mix of pre-tax income by jurisdiction and foreign taxes on domestic income. 13 Table of Contents Deferred income taxes include net operating loss carry-forwards. At June 30, 2026, the Company had tax loss carry-forwards in Australia, New Zealand, Europe and the U.S. of approximately $ 57.9 million that are available to offset future taxable income in the respective jurisdiction. The Company establishes a valuation allowance against a deferred tax asset if it is more likely than not that some portion or all of the deferred tax asset will not be realized. The Australian net operating loss carry-forwards primarily result from current and prior year tax deductions for contributions to AICF. James Hardie 117 Pty Limited, the Performing Subsidiary under the AFFA, is able to claim a tax deduction for its contributions to AICF over a five-year period commencing in the year the contribution is incurred. As of June 30, 2026, the Company recognized a tax deduction of $ 22.7 million (A$ 32.0 million) for the current year relating to total contributions to AICF of $ 426.0 million (A$ 639.4 million) incurred in tax years 2023 through 2026. 11. Commitments and Contingencies Legal Matters The Company is involved from time to time in various legal proceedings and administrative actions related to the normal conduct of its business, including general liability claims, putative class action lawsuits and litigation concerning its products. Although it is impossible to predict the outcome of any pending legal proceeding, management believes that such proceedings and actions should not, individually or in the aggregate, have a material adverse effect on the Company’s condensed consolidated financial position, results of operations or cash flows, except as described in these condensed consolidated financial statements. Australia Class Action Securities Claim On May 8, 2023, a group proceeding (class action) was filed in The Supreme Court of Victoria, Australia by Raeken Pty Ltd against James Hardie Industries plc on behalf of persons who purchased certain James Hardie equity securities from February 7, 2022 through November 7, 2022. The litigation is being funded by a litigation funder in Australia, CASL Funder Pty Ltd. The proceeding includes allegations that James Hardie breached relevant provisions of the Corporations Act 2001 (Cth) and the Australian Securities and Investment Commissions Act 2001 (Cth), including with respect to certain forward-looking statements James Hardie made about forecasted financial performance measures during the period specified above. The Company believes the challenged statements were proper and is defending the matter. On July 10, 2026, with consent of the Company, the plaintiffs filed their substitute statement of claim. The trial date remains set for February 15, 2027. The Company is actively defending the matter. As of June 30, 2026, the Company has not recorded a reserve related to this matter as the Company believes the chance of loss is not probable and the amount of loss, if any, cannot be reasonably estimated. On April 6, 2026, a group proceeding (class action) was filed in The Supreme Court of Victoria, Australia by Alexander W. Garton, an individual, against James Hardie Industries plc on his own and on behalf of persons who purchased certain James Hardie equity securities from May 21, 2025 to August 19, 2025. The proceeding includes allegations that James Hardie breached relevant provisions of the Corporations Act 2001 (Cth), the Australian Securities and Investment Commissions Act 2001 (Cth), and Australian Consumer Law, including that James Hardie misled investors and breached continuous disclosure obligations by failing to disclose material issues in its North American Fiber Cement segment and by maintaining its full year FY26 guidance until August 20, 2025. The Company believes its disclosures and the challenged statements were proper and is defending the matter. Currently, the Company is awaiting scheduling of a case management conference and issuance of a case schedule by the Court. The Company is actively defending the matter. As of June 30, 2026, the Company has not recorded a reserve 14 Table of Contents related to this matter as the Company believes the chance of loss is not probable and the amount of loss, if any, cannot be reasonably estimated. U.S. Class Action Securities Claims On October 24, 2025, a putative shareholder class action was filed in the United States District Court for the Northern District of Illinois against James Hardie Industries plc and its CEO and then-CFO on behalf of persons who purchased or otherwise acquired James Hardie common stock between May 20, 2025, through August 18, 2025. The case asserts claims for violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, alleging that the Defendants made material misstatements and omissions throughout the class period related to the strength of the Company’s North America Fiber Cement segment despite alleged customer inventory destocking. On February 17, 2026, the Court appointed Oklahoma Firefighters Pension and Retirement System as lead plaintiff, and an amended complaint was filed on April 20, 2026. On June 22, 2026, the Company filed its motion to dismiss the complaint, and briefing on this motion is scheduled to be completed by October 5, 2026. During February and March 2026, shareholders filed two additional putative class actions in the Circuit Court of Cook County, Illinois and a third shareholder filed a putative class action in the Supreme Court of the State of New York, County of New York against James Hardie Industries plc and certain of its current and former directors and officers on behalf of former AZEK stockholders who received James Hardie common stock in exchange for shares of AZEK common stock in connection with the acquisition of AZEK (collectively, the “State Court Securities Actions”). One of the Illinois cases also named Ernst & Young LLP as a defendant. The State Court Securities Actions assert claims for violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933, alleging that defendants made material misstatements and omissions regarding the strength of operations and customer inventory destocking in filings made in connection with James Hardie’s acquisition of AZEK. The Illinois actions were consolidated into a single action on April 20, 2026, and on May 12, 2026, the New York action was voluntarily discontinued. On June 26, 2026, Plaintiffs in the consolidated Illinois action filed the consolidated complaint. The Company is preparing and will file in due course its motion to dismiss in response. The Company believes the U.S. securities claims are without merit and is vigorously defending against them. As of June 30, 2026, the Company has not recorded a reserve related to these matters as the Company believes a loss is not probable and the amount of loss, if any, cannot be reasonably estimated. Environmental The operations of the Company, like those of other companies engaged in similar businesses, are subject to a number of laws and regulations on air, soil and water quality, waste handling and disposal. The Company’s policy is to accrue for environmental costs when it is determined that it is probable that an obligation exists and the amount can be reasonably estimated. 12. Share-Based Compensation Total share-based compensation expense consists of the following: Three Months Ended June 30, (Millions of U.S. dollars) 2026 2025 Liability Awards $ 3.2 $ 4.0 Equity Awards 12.0 6.9 Total share-based compensation expense $ 15.2 $ 10.9 Total share-based compensation expense for the three months ended June 30, 2026 includes replacement awards issued in connection with the AZEK acquisition. 15 Table of Contents As of June 30, 2026, the unrecorded future share-based compensation expense related to outstanding equity awards was $ 60.0 million and will be recognized over an estimated weighted average amortization period of 1.8 years. 13. Accumulated Other Comprehensive Loss Accumulated other comprehensive loss consists of the following at June 30, 2026: (Millions of U.S. dollars) Cash Flow Hedges Pension Actuarial Gain Foreign Currency Translation Adjustments Total Balance at March 31, 2026 $ 3.4 $ 2.4 $ ( 52.1 ) $ ( 46.3 ) Change in component, net of tax 6.1 — ( 8.6 ) ( 2.5 ) Reclassification from other comprehensive loss into net income, net of tax ( 0.8 ) — — ( 0.8 ) Balance at June 30, 2026 $ 8.7 $ 2.4 $ ( 60.7 ) $ ( 49.6 ) 14. Segment Information As of June 30, 2026, the Company has four reportable segments: • Siding & Trim segment - Manufactures fiber cement and PVC exterior siding and trim products, as well as moulding, interior linings, and accessories in the United States. These products are sold in the United States and Canada. • Deck, Rail & Accessories segment - Manufactures decking, railing, cladding, pergolas, cabanas and related accessories in the United States. These products are sold in the United States and Canada. • Australia & New Zealand segment - Includes fiber cement products manufactured in Australia. These products are sold in Australia and New Zealand. • Europe segment - Includes fiber gypsum products and cement bonded boards manufactured in Europe, and fiber cement products manufactured in the United States. These products are sold in Europe, primarily Germany, Great Britain and Switzerland. The Company's General Corporate and unallocated R&D costs do not meet the applicable accounting guidance for separate disclosure as a reportable segment, and are reflected as reconciling items to consolidated Net Income . General Corporate costs primarily consist of Asbestos adjustments , officer and employee compensation and related benefits, professional and legal fees, administrative costs, acquisition related costs and rental expense on the Company’s corporate offices, which are not allocated to the reportable segments. Unallocated R&D costs represented the costs incurred by the research and development centers which were costs not directly associated with one of our reportable segments. Beginning July 1, 2025, R&D costs are allocated to the segments. For the three months ended June 30, 2026, $ 6.1 million was allocated to Siding & Trim, $ 1.0 million to Australia & New Zealand and $ 0.2 million to Europe. 16 Table of Contents The following is the Company’s segment information: Operating Income (Millions of U.S. dollars) Siding & Trim Deck, Rail & Accessories Australia & New Zealand Europe Total For the three months ended June 30, 2026 Net sales $ 859.8 $ 305.1 $ 153.3 $ 156.4 $ 1,474.6 Cost of goods sold 525.7 208.2 86.1 105.9 925.9 Gross profit 334.1 96.9 67.2 50.5 548.7 Selling, general and administrative expenses 105.4 92.1 19.1 29.4 246.0 Restructuring expenses 1 — 5.2 — — 5.2 Other expenses 2 13.8 2.9 1.3 0.9 18.9 Segment operating income (loss) $ 214.9 $ ( 3.3 ) $ 46.8 $ 20.2 $ 278.6 Reconciliation to consolidated net income General Corporate costs 3, 4 ( 60.9 ) Interest, net ( 61.5 ) Other income, net 1.1 Income tax expense ( 53.0 ) Consolidated net income $ 104.3 ____________ 1. Exit costs related to the closure of a recycling plant in Oregon. Exit costs primarily consisted of fixed asset impairments, lease exit costs and employee costs. 2. Other expenses represent R&D costs and acquisition related expenses allocated to the segments. 3. Includes acquisition related expenses. 4. Starting July 1, 2025, the Company began allocating R&D costs to the segments. Operating Income (Millions of U.S. dollars) Siding & Trim Australia & New Zealand Europe Total For the three months ended June 30, 2025 Net sales $ 641.8 $ 121.6 $ 136.5 $ 899.9 Cost of goods sold 401.3 69.3 92.4 563.0 Gross profit 240.5 52.3 44.1 336.9 Selling, general and administrative expenses 76.0 14.2 28.2 118.4 Other expenses 1 3.3 0.3 0.8 4.4 Segment operating income $ 161.2 $ 37.8 $ 15.1 $ 214.1 Reconciliation to consolidated net income General Corporate 2 and Unallocated R&D costs ( 75.5 ) Interest, net ( 37.8 ) Other expense, net ( 11.1 ) Income tax expense ( 27.1 ) Consolidated net income $ 62.6 ____________ 1. Other expenses represent R&D costs and acquisition related expenses allocated to the segments. 2. Includes acquisition related expenses. 17 Table of Contents Depreciation and Amortization Three Months Ended June 30, (Millions of U.S. dollars) 2026 2025 Siding & Trim $ 68.5 $ 43.6 Deck, Rail & Accessories 80.9 — Australia & New Zealand 6.7 5.2 Europe 10.2 6.8 General Corporate and R&D 2.5 0.9 Total $ 168.8 $ 56.5 Capital Expenditures Three Months Ended June 30, (Millions of U.S. dollars) 2026 2025 Siding & Trim $ 49.2 $ 73.9 Deck, Rail & Accessories 12.9 — Australia & New Zealand 14.3 13.7 Europe 10.3 12.9 General Corporate and R&D 3.1 2.7 Total $ 89.8 $ 103.2 18 Table of Contents