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NEW YORK - James Hardie Industries plc (NYSE/ASX:JHX) saw its shares surge 13.8% after the exterior home and outdoor living solutions provider reported better-than-expected second quarter fiscal 2026 results and raised its full-year guidance.
The company posted adjusted earnings per share of $0.26, exceeding analyst estimates of $0.24, while revenue reached $1.29 billion, topping the consensus forecast of $1.27 billion. Total revenue jumped 34% from the year-ago period, though organic net sales declined 1%. The strong market reaction reflects investor confidence in the company’s performance despite challenging market conditions.
"The environment remains challenging, requiring us to address market conditions with focus and adaptability," said Aaron Erter, CEO of James Hardie. "The AZEK business is performing well and is surpassing our expectations."
The company’s Siding & Trim segment saw net sales increase 10%, primarily due to the contribution from AZEK Exteriors, though organic net sales declined 3% as higher average prices were offset by lower volumes amid soft market demand. Meanwhile, the Deck, Rail & Accessories segment delivered mid-single-digit growth in both net sales and sell-through.
Based on the stronger-than-anticipated performance, James Hardie raised its fiscal 2026 guidance. The company now expects total adjusted EBITDA of $1.20 to $1.25 billion, up from the previous forecast of $1.05 to $1.15 billion. Net sales for Siding & Trim are projected at $2.925 to $2.995 billion, increased from the prior range of $2.675 to $2.850 billion.
The integration of AZEK, which James Hardie acquired on July 1, 2025, is progressing well, with the company exceeding its fiscal 2026 cost synergy target ahead of schedule. Commercial synergy wins are materializing across the value chain, with several early successes with dealers, contractors, and homebuilders.
For the first half of fiscal 2026, operating cash flow totaled $254 million, while capital expenditures were $196 million. The company maintains its free cash flow guidance of at least $200 million for the full year.
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