James Hardie Industries PLC (ASX: JHX) shares are having a tough session on Wednesday.
At the time of writing, the ASX 200 share is down over 3% to $25.90.
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James Hardie shares fall on results day
Investors have been selling the building materials company's shares this morning following the release of its fourth quarter and full year results.
According to the release, for FY 2026, James Hardie reported net sales of US$4.84 billion, up 25% from US$3.88 billion in FY 2025. However, this was largely supported by the contribution from the AZEK acquisition. On an organic basis, net sales declined 2% for the year.
The newly acquired Deck, Rail & Accessories division contributed net sales of US$795.2 million and adjusted EBITDA of US$224.8 million for the year.
In Siding & Trim, net sales increased 3% to US$2.96 billion. However, adjusted EBITDA fell 5% to US$951.4 million, with margins declining to 32.1% from 35% in FY 2025.
Management said full-year exterior product volumes fell high single digits, with single-family volumes down low double digits as softer construction conditions weighed on demand.
Group operating income fell 32% to US$447.6 million, while adjusted EBITDA rose 17% to US$1.27 billion.
Finally, statutory net income fell 75% to US$104.0 million, compared with US$424 million in FY 2025.
Management commentary
Commenting on the year, James Hardie's CEO, Aaron Erter, said:
Fiscal 2026 was a transformational year for James Hardie, highlighted by the closing of the AZEK acquisition. As we integrate the businesses, we are seeing continued progress across both cost and commercial synergies, further strengthening our belief in the long-term value creation opportunity from the combination.
For the full fiscal year, we delivered solid financial performance despite a challenging operating environment. Despite our markets declining mid-to-high single digits for the year, our organic net sales declined just 2% year over year.
Outlook
Unfortunately, James Hardie is not assuming a market recovery in FY 2027.
However, it is still targeting pro forma adjusted EBITDA growth of 4% to 8%.
The company's chief financial officer, Ryan Lada, explained:
The operating environment remains uncertain. We are not assuming a market recovery. What gives us confidence is execution — synergy realization, our enhanced go-to-market model, manufacturing cost actions taken in FY26, and disciplined capital allocation. In forming our fiscal year 2027 outlook, we assessed a broad range of macroeconomic indicators, including commentary from large homebuilders, repair and remodel market trends, channel inventory levels across our distribution network, and broader consumer sentiment.
