James Hardie Industries (ASX: JHX) is in focus after the company unveiled its preliminary results for the second quarter of FY26, reporting adjusted EBITDA of $326–331 million and adjusted net income of $151–157 million.
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What did James Hardie report?
- Preliminary net sales of US$1.29–1.30 billion for Q2 FY26
- Adjusted EBITDA of US$326–331 million
- Adjusted net income of US$151–157 million
- Adjusted diluted earnings per share of US$0.26–0.27
- Net debt of US$4.5 billion as at 30 September 2025
What else do investors need to know?
James Hardie notes that its Siding & Trim sales slightly outperformed internal forecasts, with demand holding up despite softer single-family construction. Distributors and dealers also reduced inventories less than anticipated.
The recently acquired AZEK business delivered mid-single-digit growth in both net sales and sell-through for the quarter. The integration of AZEK and related synergy programs are reported to be tracking on plan, providing early confidence in future commercial benefits.
What did James Hardie management say?
Aaron Erter, CEO of James Hardie, said:
Our Siding & Trim sales performance exceeded the expectations reflected in our modeling considerations. Siding & Trim second quarter organic net sales fell low single-digits vs. the prior year, and distributors and dealers reduced inventory less than we had anticipated. Even as single-family new construction remains challenging, our customers' commitment to ensuring the availability of our products demonstrates the importance of our brand and strong partnerships. We are encouraged by our second quarter results and believe the outlook for Siding & Trim has modestly improved. We will provide an update to our full year guidance through March with our second quarter earnings call in November.
What's next for James Hardie?
James Hardie will give a wider update to FY26 guidance at its second quarter earnings call in November. The company anticipates opportunities to increase shelf space for Deck, Rail & Accessories and to expand its core Siding & Trim range through the AZEK dealer network, particularly in key repair and remodel markets.
Management has highlighted ongoing efforts to capture cost and revenue synergies through integration initiatives as a lever for growth in the coming year.
James Hardie share price snapshot
James Hardie shares have fallen 44% in the past year, significantly trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 10% over the same period.
