The James Hardie (ASX: JHX) share price is in focus today after the company posted first quarter FY26 results that saw net sales reach US$900 million, with an average net sales price up across all regions. Adjusted EBITDA for the quarter came in at US$226 million, and the company updated its FY26 guidance to factor in its recent AZEK acquisition.
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What did James Hardie report?
- Net sales of US$899.9 million, down 9% year-on-year
- Operating income of US$138.6 million, a 41% decrease
- Adjusted EBITDA of US$225.5 million, down 21%
- Net income of US$62.6 million, compared to US$155.3 million last year
- Adjusted diluted earnings per share of US$0.29, down from US$0.41
- Free cash flow of US$103.7 million, up 88% from the prior period
What else happened in the first quarter of FY26?
James Hardie completed the acquisition of AZEK on 1 July 2025, positioning the company as a wider leader in exterior home and outdoor living solutions. Integration of the AZEK business is progressing well, with early wins on cost and commercial synergies.
In Australia and New Zealand, net sales grew modestly in local currency, supported by higher volumes and price increases, despite challenging market conditions. Europe also delivered a stronger EBITDA margin, helped by increased prices and cost savings.
What did James Hardie management say?
Commenting on the result, CEO Aaron Erter said:
Our first quarter results were largely as we had anticipated, and reflect an expected normalization of channel inventories, due to moderating growth expectations by customers as uncertainty built throughout April and early May. We remain committed to outperforming market demand over the long term and are employing strategies to deliver on this commitment, notwithstanding near-term conditions. Our actions are centered around our value proposition to customers, and our solid execution against these strategies amplifies our expansive material conversion opportunity. We are resolute in our strategy that is grounded in being homeowner focused, customer and contractor driven. In essence this means that the driving force of our business is our unwavering commitment to delivering winning solutions across the customer value chain.
What's next for James Hardie?
Looking forward, James Hardie expects continued integration of the AZEK acquisition to create a more comprehensive exterior and outdoor living offering. The company is aiming for cost and commercial synergies, targeting up to US$125 million in annual cost savings within three years, and more than US$500 million in commercial synergies over five years.
For FY26, James Hardie has guided for Siding & Trim net sales between US$2.675 and US$2.85 billion, Deck, Rail & Accessories sales of US$775–800 million, and total adjusted EBITDA in the range of US$1.05–1.15 billion. Management has also set a free cash flow target of at least US$200 million, including contributions from AZEK.
James Hardie share price snapshot
Factoring in today's decline, James Hardie shares have fallen 35% over the past year, significantly trailing the S&P/ASX 200 Index (ASX: XJO) which has increased 11% over the same time frame.
