The James Hardie Industries PLC (ASX: JHX) share price is in focus today after the company reported first quarter FY27 net sales of US$1.475 billion, up 64% on the prior corresponding period, and adjusted EBITDA of US$422 million, a jump of 79% year over year.
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What did James Hardie report?
- Net sales rose 64% to US$1,474.6 million (Q1 FY26: US$899.9 million)
- Net income increased 67% to US$104.3 million
- Adjusted EBITDA was US$422.1 million, up 79%
- Adjusted diluted earnings per share at US$0.36, up 13%
- Free cash flow grew to US$254.2 million, more than double last year
- No interim dividend was declared
What else do investors need to know?
James Hardie's growth was driven by strong results in its Siding & Trim division, where net sales rose 34% to US$860 million, helped by double-digit growth in North American fibre cement products. The recent AZEK acquisition contributed to these figures, with reported results now including the Deck, Rail & Accessories (DR&A) business.
Australia and New Zealand net sales increased 26% (14% in AUD terms), reflecting share gains, new builder wins, and favourable exchange rates. In Europe, sales lifted 15% in US dollars (12% in euros), with robust demand in fibre gypsum and improved margins despite challenging economic conditions.
The company continues to deliver synergy benefits from the AZEK acquisition, including significant cost and channel efficiencies ahead of schedule. Operating cash flow for the quarter was US$344 million, supporting ongoing investment in growth and further debt reduction.
What did James Hardie management say?
Aaron Erter, CEO of James Hardie, said:
Our strong first-quarter results reflect disciplined execution and continued above-market growth, rather than a meaningful improvement in the underlying U.S. housing market. We are not assuming a housing market improvement, but our performance and growth expectations support raising our full-year outlook.
We remain firmly committed to our fiscal 2027 priorities: returning fiber cement to growth, outperforming the market, expanding Adjusted EBITDA, achieving cost and revenue synergies, and driving a meaningful step-up in free cash flow to support continued deleveraging. We look forward to sharing more on our long-term strategy and value creation opportunities at our Investor Day in New York City in September.
What's next for James Hardie?
James Hardie has lifted its full-year FY27 outlook and is now targeting pro forma net sales growth of 5.9% to 9.0%, and pro forma adjusted EBITDA growth of 7.4% to 13.7%. The company expects organic growth in Siding & Trim and above-market performance for DR&A over the remainder of the year. Free cash flow for FY27 is forecast to exceed US$500 million, up more than US$200 million year on year.
Management says James Hardie will focus on expanding margins, driving commercial and cost synergy targets, and reducing net leverage to below 2.0x by Q2 FY28. The company does not expect significant new capital investment requirements near term, with its manufacturing network well positioned for anticipated demand.
James Hardie share price snapshot
It has been a subdued 12 months for the James Hardie share price. During this time, the company's shares have undeperformed the S&P/ASX 200 index (ASX: XJO) with a modest 1% gain.
