James Hardie’s ASX-listed shares near one-year high after earnings forecast upgrade
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Aug 7 : James Hardie raised its annual earnings forecast on Friday, citing AZEK acquisition synergies, manufacturing efficiencies and demand in its legacy fiber cement business, sending its Australia-listed shares to a near one-year high.
The company also reported a 54 per cent jump in first-quarter adjusted net income to $209.3 million, from $136.1 million a year earlier.
ASX-listed shares of the Dublin-headquartered firm surged as much as 5.4 per cent at the open, in contrast with a 0.4 per cent decline in the broader market.
Siding & Trim, the company’s biggest profit-generating segment, remained under pressure all through last year as affordability constraints in the U.S. slowed new construction activity and left distributor inventories elevated.
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Rather than a recovery in the underlying market, CFO Ryan Lada attributed the guidance raise to synergies from integrating AZEK, along with manufacturing cost improvements and the company’s “enhanced go-to-market strategy”.
The company, among the world’s top fiber cement makers, now expects 2027 adjusted earnings before interest, taxes, depreciation and amortization of $1.54 billion to $1.63 billion, above its previous projection of $1.45 billion-$1.50 billion.
James Hardie also raised its 2027 net sales forecast to $5.56 billion to $5.72 billion, up from its previous forecast of $5.25 billion-$5.41 billion.
“They have shown they are capable of market share gains through periods of weakness over decades, gaining share over other siding types,” Esther Holloway, an equity analyst at Morningstar, said.
“I think the market lost sight of this as the Azek noise crowded it out,” she added.
James Hardie’s $8.75 billion acquisition of U.S.-based decking and exteriors company AZEK in 2025 sparked backlash from investors after the company received an Australian Securities Exchange waiver that allowed it to avoid a shareholder vote on the deal.
The controversy also triggered an unprecedented board shake-up, including the removal of then-chair Anne Lloyd.
However, Holloway warned that while cost-saving and cross-selling targets were on track, “early savings are often the low hanging fruit and achieving them can be harder from here.”
For the first quarter, the company logged a 34 per cent increase in sales in its key Siding & Trim business, which includes the company’s legacy North America operations, and AZEK exteriors.
Excluding AZEK, organic sales in the division rose 20 per cent as previously elevated distributor inventories normalised and demand improved, helping the North American fiber cement returned to volume growth.
Source: Reuters
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