James Hardie Industries plc

Strong Q1 performance vs guidance (fiber cement-led) - Net sales $1.47B (+64% YoY reported, +12% pro forma)—above the high end of original guidance. - Adjusted EBITDA $422M with 28.6% margin, also above the high end of guidance; driven by volume leverage and cost actions. - Fiber cement was the key driver: organic growth +20% (noted as execution + lapping a prior inventory destock + price/mix).

Share-based compensation (SBC) accounting change in non-GAAP metrics - Starting in Q1, the company excludes SBC expense from adjusted EBITDA and other non-GAAP measures to better reflect underlying performance and improve comparability with peers. - SBC will still be shown separately in reconciliation tables (so investors can see the impact of the change).

Guidance raise for FY2027; Q2 expected steady with distribution-driven noise - Q2 outlook: net sales $1.485B–$1.575B (+14.9% to +21.9%); Adjusted EBITDA $420M–$455M. - FY2027 outlook raised: - Sales $5.564B–$5.723B (+5.9% to +9.0% pro forma). - Adjusted EBITDA $1.536B–$1.625B. - Free cash flow expected > $500M for the year; capex ~6% to 7% of net sales. - Management warned about quarter-to-quarter noise in sell-in over the next periods due to distributor transitions (sell-through expected to remain stronger than sell-in).