James Hardie Industries plc reported its second‑quarter fiscal 2026 results on November 17, 2025, for the quarter ended September 30, 2025. Total revenue rose to $1.292 billion, a 34% year‑over‑year increase that exceeded the consensus estimate of $1.27 billion by $22 million. Adjusted earnings per share were $0.26, beating the $0.24 estimate by $0.02. The revenue lift was largely driven by the integration of the AZEK acquisition, which added $200 million in top‑line growth and helped offset a modest decline in organic sales. The earnings beat reflects disciplined cost management and a favorable product mix that shifted toward higher‑margin segments.
The company posted a net loss of $55.8 million for the quarter, a stark reversal from the $83.4 million net income reported in Q2 FY25. The loss is attributable to a $30 million inventory step‑up related to the AZEK acquisition and one‑time integration expenses that have not yet been fully amortized. While revenue grew, the cost of goods sold and integration charges compressed margins, turning the prior year’s profit into a loss. This shift underscores the short‑term impact of the acquisition, which is expected to generate long‑term synergies.
Segment performance highlights that Siding & Trim net sales increased 10% year‑over‑year, driven by the AZEK Exteriors line, while Deck, Rail & Accessories saw mid‑single‑digit growth. Organic net sales declined 1%, reflecting softer demand in legacy North American fiber‑cement markets. The mix shift toward higher‑margin AZEK products helped offset the decline in legacy volumes, supporting overall revenue growth despite the net loss.
Management raised its full‑year FY26 adjusted EBITDA guidance to $1.20 billion–$1.25 billion, up from the prior $1.05 billion–$1.15 billion range. The upward revision signals confidence in sustained demand, cost‑synergy realization, and the continued integration of AZEK. The guidance increase also reflects expectations of improved gross margins as inventory adjustments settle and operational efficiencies materialize.
Shares in James Hardie rose 13.8% in after‑hours trading and closed up 9.87% on the ASX following the announcement. The market reaction was driven by the earnings beat, the raised full‑year guidance, and the positive outlook for the AZEK integration, which investors view as a strategic win that expands the company’s product portfolio and market reach.
CEO Aaron Erter emphasized that “our second‑quarter results were consistent with what we shared in early October, with Siding & Trim outperforming the modeling considerations we provided in August.” He added that the AZEK business is performing well, that cost‑synergy targets have been exceeded ahead of schedule, and that early commercial wins demonstrate the company’s ability to accelerate material conversion across exteriors and outdoor living.”
The combination of a revenue beat, a guidance lift, and a strong integration narrative has positioned James Hardie favorably in the market, suggesting that the company’s strategic moves are beginning to pay off even as it navigates short‑term integration costs.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.