James Hardie Industries plc announced that it will shut down its Fontana, California, and Summerville, South Carolina, manufacturing sites within the next 60 days. The company expects the closures to generate roughly $25 million in annualized cost savings beginning in the first quarter of fiscal year 2027, while maintaining the production capacity needed to support its growth initiatives.
The announcement comes after the company reported Q2 FY2026 results that included an earnings‑per‑share beat of $0.26 versus the consensus estimate of $0.25, driven by disciplined cost control and a favorable product mix. Revenue, however, missed expectations at $1.29 billion against the $1.30 billion estimate, largely because lower manufacturing utilization and higher raw‑material costs weighed on the North American fiber‑cement segment. The company’s adjusted EBITDA margin contracted slightly, reflecting the impact of these headwinds.
James Hardie reaffirmed its FY2026 guidance for revenue and earnings, signaling confidence that the cost‑saving initiative and the ongoing integration of the AZEK acquisition will offset the short‑term impact of the one‑time charges. The AZEK deal, completed in July 2025, is expected to deliver additional synergies, and the company’s Hardie Operating System (HOS) is positioned to capture further efficiencies as production consolidates into modern, advanced plants.
Segment performance data show that Siding & Trim net sales rose 10% driven by strong demand in the U.S. residential market, while Deck, Rail & Accessories grew mid‑single‑digit, offsetting a modest decline in the legacy fiber‑cement line. The company’s Asia Pacific and European businesses remained flat, indicating that the U.S. market is the primary driver of current growth.
CEO Aaron Erter emphasized that the plant closures are part of a broader strategy to strengthen the Hardie Operating System and improve utilization. He noted that the decision was not taken lightly and thanked the teams at Fontana and Summerville for their contributions, underscoring the company’s commitment to operational excellence and long‑term value creation.
Analysts highlighted the projected $25 million in annual cost savings as a key driver of the positive market reaction, noting that the company’s reaffirmation of FY2026 guidance and the successful integration of AZEK reinforce confidence in its strategic direction.
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