James Hardie Industries plc CMD 2026

All right. Good morning, and welcome to James Hardie's 2026 Investor Day. Thank you for everyone that is joining us in person today. It was a huge turnout. We have an extra room over there for the spillover, and thanks for everyone for joining online. A big thanks to those people who have traveled far. We have a pretty big contingent from Australia with us today. Let us see here. Safety note. You came in these doors right here. There is an emergency exit to the left there, and the Convene staff will be there to help you if needed. Let us go through the FLS, the fun stuff. Please note that today we may refer to non-GAAP financial measures and make forward-looking statements. You can refer to several related cautionary and other notes in this slide. Forward-looking statements made today speak only to the date of this presentation.

Forward-looking statements are subject to risks and uncertainties and could cause actual results to differ materially from those in the forward-looking statements. Accordingly, investors are cautioned not to place undue reliance on forward-looking statements. In addition, non-GAAP measures should be considered in isolation or as a substitute for results prepared in accordance with GAAP. Reconciliations of non-GAAP measures discussed are found in the presentation in the appendix. Let us walk through the agenda here for today. We are going to start with Aaron Erter, then we will do Jon Skelly, John Madson, Sam Toole, and then we are going to do the first Q&A session where all those speakers will come up. We will take a short break. During that break, you are welcome to go out there and see the demos again. Then we will come back with Ryan Kilcullen, then Ryan Lada.

Then Aaron will do a short close, and then we are going to bring the whole group up for a final Q&A. Then what we have is, then we are going to have the leadership luncheon, which is what you saw there. We will have lunch out there, another chance, an hour for you to check out the demos. Just one little note here, we are doing a decking teach-in. For those of you who want a primer on decking, it is not on the schedule here, but we are doing a teach-in for decking. That will start at 1:15 P.M. to 2:00 P.M. That is optional, of course, if you want to do that. That, again, the main demo area will shut down about 1:00 P.M., a little bit after, and then we will start the decking presentation for those of you that want to do that, 1:15 P.M. to 2:00 P.M. All right. Let us get started, and we are going to queue up a video.

Some moments mark a turning point. A company with deep roots, trusted products, a category it helped define, and then something new. Two industry leaders, one shared vision, built to lead what is next. The combination of James Hardie and The AZEK Company did not just add brands. It built something the market has never seen. Number one and number two brand positions across every category we serve. Siding, trim, decking, railing, outdoor living structures, the home of resilient beauty. Beneath it all, a manufacturing and circularity platform that no competitor can replicate. The largest vertically integrated recycler of PVC in North America, with over 3.5 billion pounds of otherwise landfill-bound material reclaimed since 2019. Built on innovation that runs deep, from material science and proprietary technology to design leadership that keeps us ahead, the momentum is real.

The best sales team in the industry, deep relationships across every layer of the value chain: contractors, home builders, dealers, retailers, and homeowners. One Hardie is not an idea, it is who we are. We are at the beginning of something extraordinary. The material conversion opportunity across siding, trim, and outdoor living is measured in the tens of billions. The housing stock is aging. A new generation of homeowners is arriving, and they want products that look beautiful, that last, that they can feel good about choosing. James Hardie is positioned to lead that conversion with the brands, the innovation, the manufacturing scale, the commercial relationships, and the team to make it happen. For our shareholders, this is durable, long-term value creation. For our employees, our customers, and our communities, it is something more. It is building a better future for all. This is the new James Hardie.

All right. Good morning, everyone. What a voice on that announcer there. That is the Hardie Operating System in action. All right. Hey, good morning. It is great to see everyone here. Also welcome to everyone who is on the webcast here. We got a packed house and a beautiful day here in New York City. Also want to thank our team. We have some of our leadership team that you will hear from here today, and then also you will get a chance, if you have not already, meet many of them who are out there manning some of the product stations.

Also, I want to thank our team across the globe. This is a monumental moment for us as we think about what we have been through over the last year. It has been 14 months since we came together with AZEK, and there has been a lot of ups, a lot of downs. Integration is never perfect here. Here is really the message I want everyone to take away is this is working. What we said was going to happen over a year ago, putting these two companies together, this is working. I think the important point here is we are just getting started. Part of the thesis of bringing the two companies together is really what our Investor Day theme is here, and it is Built to Outperform, Resilient by Design.

So what I would like to do here now, and you are going to hear the rest of the day here, is this thesis and how we are going to make this happen. Let me dive right into it. Look, as we brought these two companies together, the idea was to be able to outgrow the market no matter what. Certainly, the market is challenging right now. One quarter does not make a total thesis right, but like I said, we are on our way, and it is working. I think the other thing, as we brought the two companies together, was to accelerate growth, and you will hear some of the initiatives that we have and we only have by bringing these two companies together. The other piece of this, which is not unique to our industry and building products, but you see more and more consolidation within our industry. That happens every day. You hear about a deal.

That is not going to stop happening. If anything, as the market picks up a little bit, we think that is only going to accelerate, and that is why having the strength of brands, the team, the products, makes this much more important for us to do. We are sitting in a really good place here right now. Look, the five pillars that we are going to dive into here today is delivering growth above the market. That means it is not dependent on, okay, when housing comes back, we are going to be able to grow. We are going to be able to grow no matter what. That is what putting these two companies together, and we are able to do that because you will see from the team, we have fiber cement, we have DR&A initiatives that are going to sustain long-term growth for us.

The other piece which we are excited about, and we have made a lot of progress. I know when we announced this deal, there were many naysayers about our $500 million in commercial synergies. That is going to happen. We are well on our way. I would even say at least $500 million of commercial synergies for us. You will hear Jon and John bring some of this to life. But our customers are aligned with us. They want to do business with us. Our contractors want to use our products. That is point number one. If I think about point number two, it is the enduring competitive advantages. I will spend some time on this, but you can see on the list here, we said products, brands, manufacturing, Hardie Operating System, deep relationships, our commercial strategy. If a company had one or two of these together, they would feel pretty good.

We hit string all of these together. This is very hard to compete with. The other thing we are going to unveil here, I know in these investor days, and certainly many years past, I have done it before, people have done it before, is you put three-year, five-year targets out there. The way the market is, how could any of us predict what that is going to be? What we feel comfortable with and what you are going to see, I am going to take you through it at the end of my section here, Ryan will dive more into it, is we have a compelling growth algorithm. Think of it as a differentiated type of portfolio, growth stack of things that we are going to do, that we are going to be able to outperform the market no matter what. Right? So outperforming the market, whether the macro is tough, right?

There is inflation, there is more consolidation. You will see that. Look, what is exciting is we continue to enhance our cash flow. We are delevering pretty quickly. You see our margins continue to build. We are going to have a lot of cash. I think what is really interesting here and what is exciting is the optionality we are going to have as Ryan takes you through the capital allocation. The other thing which I am most excited about is us being able to consistently execute. I know that is what you look for, right? Are we able to do this day in and day out? As I told my team last night, many of you are here. You want to see if you understand the strategy. You want to understand if you have confidence in it.

Then there is do you have confidence in the team that is going to go out and execute upon that? I think we have the best team in the industry. You are going to hear more about these investment pillars, if you will, but let me go right to what I just mentioned and talk a little bit about our team, because one of the things that I am most excited about is for you to hear from this team. Look, I will not go through all their backgrounds because they can take you through it. As we decided to bring these two companies together, there is different approaches you can take, and I have been through a few of these. You can say, "Okay, we are the acquired. We are going to do whatever. It is going to be the legacy team that is going to run the business." We took a different approach.

We said, "These are very similar type of companies." Right? The best approach for us as we move forward in, this is what we have done not only with the team, but we have also done this with the way we have set up the entire organization, our processes, is we are going to take the best of both. That is what we have done here. There is really no coincidence why, as you look at the backgrounds here, you have equal amount of legacy AZEK, equal amount of legacy Hardie here. Jon Skelly, who runs our largest business, he is going to come up after me. You can see the breadth of experience that he has. John Madson, who is our Chief Sales Officer, new to that role, but certainly not new to the industry, is a legacy James Hardie guy since 2004.