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James Hardie earnings: FY26 profit drops as sales lift 25%

James Hardie shares are in focus after the company posted higher sales but a sharp fall in annual profit, pointing to synergies from its AZEK deal.

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Laura Stewart
Author bio Laura Stewart is a Finance Editor at The Motley Fool, where she covers Australian and international equity markets. She joined the company in 2022, following a career transition from legal advisory work in Southeast Asia into the investment industry. Prior to her current editorial role, Laura spent three years as an Equity Analyst and Writer, producing investment research across the ASX, NYSE, and NASDAQ. Her coverage included small-cap growth companies, thematic investment ideas, and high-quality U.S.-listed businesses. Laura holds a Master of Applied Finance and brings additional expertise in accounting, taxation, and estate and wealth planning from her postgraduate studies. She also has a background in law and communications, which supports her analytical and reporting work in financial markets. Outside of work, she enjoys spending time in the Adelaide Hills with her flock of sheep. Education Laura holds a Bachelor of Laws, a Bachelor of Communication (Journalism), and a Bachelor of Commerce with majors in Accounting and Corporate Finance. In 2025, she completed a Master of Applied Finance at the University of Adelaide, receiving postgraduate awards in Accounting Concepts & Methods, Ethical Principles in Accounting & Finance, Real Estate Valuation & Investment, and Tax, Estate & Wealth Planning. Social media LinkedIn FYI – I am taking a break from social media at the moment, so this account isn’t active at the moment, but I will let you know when I rejoin. Favorite investment quote "Compound interest is the eighth wonder of the world. He who understands it, earns it... he who doesn't... pays it." — Albert Einstein
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The James Hardie Industries Plc (ASX: JHX) share price is in focus today after the building products group posted full-year net sales of US$4.84 billion, up 25%, while net profit fell sharply year-on-year.

Male building supervisor stands and smiles with his arms crossed at a building site with workers behind him.

Image source: Getty Images

What did James Hardie report?

  • Full-year net sales: US$4.84 billion, up 25% (Q4: US$1.40 billion, up 45%)
  • Net profit after tax: US$104.0 million, down 75%
  • Adjusted EBITDA: US$1.27 billion, up 17% year on year
  • Adjusted EBITDA margin: 26.2% (down from 27.8%)
  • Organic net sales: down 2% in FY26 (excluding AZEK acquisition)
  • No dividend declared or paid for the year

What else do investors need to know?

James Hardie completed its largest-ever acquisition with the purchase of AZEK on 1 July 2025. The company reported that integration is progressing well, delivering both cost and commercial synergies ahead of schedule. Cost savings from facility closures and operational initiatives were highlighted, with $25 million in annualised savings expected to begin from FY27.

Australian and New Zealand operations delivered steady results, with local currency sales holding firm and EBITDA margins remaining in the mid-30% range. European sales also grew despite challenging economic conditions, buoyed by fibre gypsum products and resilience in key markets.

Across the group, market softness—particularly in North America—affected organic growth, especially in the core Siding & Trim division, but the contribution from AZEK and disciplined cost management supported improved profitability.

What's next for James Hardie?

For FY27, James Hardie expects pro forma Adjusted EBITDA growth of 4% to 8%, with positive organic sales growth anticipated in the Siding & Trim division. The company is targeting free cash flow of at least US$500 million, an increase of over US$200 million year on year.

Management says synergy realisation and operational discipline remain key, while no material recovery in end markets is assumed in company guidance. With channel inventories now normalised, James Hardie expects to benefit from improved pricing, product mix, and cost leverage.

James Hardie share price snapshot

Over the past year, James Hardie shares have declined 30%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 3% over the same period.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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