Sydney, May 20, 2026, 09:06 (AEST)
- James Hardie’s shares on the NYSE dropped 6.1% during the session and lost another 2.6% after hours, with results coming out after the U.S. close.
- Fourth-quarter net sales rose 45% to $1.40 billion, but net income dropped 35% to $28.5 million, the company said.
- ASX was yet to trade after the release, with regular trading set to open just before 10 a.m. Sydney time.
James Hardie Industries’ U.S. stock dropped after the building products maker posted a drop in quarterly profit and said housing affordability is still hurting demand. The results put its Australian shares in focus for Wednesday’s open.
James Hardie is a big play on U.S. housing cycles, with exposure to both new home building and renovations. Its shares on the ASX closed Tuesday at A$26.78, up 2.9% ahead of earnings. The S&P/ASX 200 finished 1.2% higher at 8,605.
James Hardie reported fourth-quarter net sales of $1.40 billion, up from $971.5 million last year, boosted by its AZEK acquisition. But organic net sales, excluding acquisition and portfolio changes, slipped 1%. Net income came in at $28.5 million, down from $43.6 million.
Adjusted EBITDA climbed 42% to $380.9 million. CEO Aaron Erter said the company came in “above our guidance range” even with a “challenging operating environment.” SEC
James Hardie’s Siding & Trim segment felt the most pressure. Organic net sales for the core unit dropped 7%, mostly on lower volumes as single-family exteriors slowed. The segment’s reported operating margin slipped to 19.1%, down from 28.2%.
Deck, Rail & Accessories, the AZEK segment, put up $345.3 million in net sales and $97.5 million in adjusted EBITDA for the quarter. The company said bad weather slowed sell-through in February and early March, so dealers kept more inventory, which cut into Q1 profit.
James Hardie is guiding for fiscal 2027 net sales of $5.25 billion to $5.41 billion and adjusted EBITDA in the range of $1.45 billion to $1.50 billion. The company is also targeting free cash flow of at least $500 million after capital spending.
Chief Financial Officer Ryan Lada took a cautious tone on the market, saying the operating environment “remains uncertain.” Lada said the company was “not assuming a market recovery.” He pointed to cost synergies, manufacturing savings and disciplined capital allocation as ways to offset the uncertainty. SEC
Home Depot said Tuesday that U.S. consumers were putting off big remodeling work as spending felt the strain from housing affordability and economic worries. But sales beat estimates, as contractor demand stayed solid.
Trex stuck with its 2026 outlook this month after reporting Q1 net sales of $343 million. Louisiana-Pacific said siding revenue dropped 10% as higher prices couldn’t make up for lower volumes. Owens Corning reported that discretionary remodeling and new residential construction stayed weak.
Cost cuts and AZEK synergies may not be enough if the housing market stays weak. James Hardie’s long-term debt jumped to $4.49 billion from $1.11 billion after the deal. The company highlighted changes in interest rates, construction levels, raw-material prices, and AZEK integration as things that could shift results off its forecasts.
Sydney is up next for market moves. The ASX cash market was still in pre-open at publication time, so investors hadn’t reacted yet to James Hardie’s results and U.S. after-hours trading.
