The James Hardie Industries Plc (ASX: JHX) share price is in focus today after the building materials company posted second quarter FY26 net sales up 34% to US$1.29 billion and adjusted EBITDA up 25% to US$329.5 million. Despite those top line gains, statutory profit for the half sank 97% year-over-year to US$6.8 million as acquisition costs and other one-off items weighed.
What did James Hardie report?
- Second quarter FY26 net sales: US$1,292.2 million, up 34% vs PCP
- Group adjusted EBITDA: US$329.5 million for Q2, up 25% vs PCP
- Adjusted net income: US$154 million for Q2, down 2% vs PCP
- Statutory net profit for half: US$6.8 million, down 97% vs PCP
- No interim dividend declared
- Upgraded full year adjusted EBITDA guidance to US$1.20–1.25 billion
What else do investors need to know?
James Hardie completed its sizeable acquisition of The AZEK Company on 1 July 2025, boosting both net sales and contributing to inorganic segment growth. The uplift in revenue was tempered by significant one-off acquisition and integration costs during the period, including US$159.7 million in charges and a US$47.9 million inventory step-up from the AZEK deal.
The company's Siding & Trim segment increased reported net sales by 10% in Q2, though organic sales (excluding AZEK) slipped. Deck, Rail & Accessories benefited from AZEK's results, posting 6% pro-forma sales growth compared to last year, while the Australia & New Zealand segment saw a 10% year-on-year sales decline in USD with ongoing manufacturing headwinds after exiting the Philippines.
What did James Hardie management say?
Aaron Erter, Chief Executive Officer said:
Our second-quarter results were consistent with what we shared in early October, with Siding & Trim outperforming the modelling considerations we provided in August. The environment remains challenging, requiring us to address market conditions with focus and adaptability. Siding & Trim saw a modest decline in organic net sales in the quarter, and lower manufacturing utilization in our legacy North America operations impacted our margins. We are targeting actions to improve manufacturing costs while continuing to enhance efficiency through the Hardie Operating System. Deck, Rail & Accessories delivered mid-single-digit growth in both net sales and sell-through ahead of stable market demand, demonstrating our ability to drive material conversion through channel expansion and new product initiatives.
What's next for James Hardie?
Looking forward, James Hardie upgraded its FY26 guidance as the integration of AZEK progresses ahead of plan and commercial synergy wins start to flow. The company now expects consolidated adjusted EBITDA between US$1.20 billion and US$1.25 billion, up from previous guidance of US$1.05–1.15 billion. Full-year net sales forecasts for Siding & Trim and Deck, Rail & Accessories were also increased.
Management remains focused on leveraging AZEK's product lines, driving operational improvements, and realising synergies across manufacturing and sales channels. Capital expenditure is planned at around US$400 million for FY26 to support expansion projects and capacity enhancements.
James Hardie share price snapshot
Over the past 12 months, James Hardie shares have fallen 54%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.
