James Hardie reported a 34% increase in net sales last quarter and has appointed a new CFO and chair, sending shares up 7.6%.
Net sales were US$1.29 billion (A$1.99 billion), up from $960.8 million year-over-year. Adjusted net income was $154.0 million, dropping 2%.
“Our second-quarter results were consistent with what we shared in early October, with Siding & Trim outperforming the modeling considerations we provided in August. The environment remains challenging, requiring us to address market conditions with focus and adaptability,” said James Hardie CEO Aaron Erter.
“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.”
Operating income decreased by 84%, largely due to one-off costs from its purchase of building materials company AZEK in July. Adjusted EBITDA was $329.5 million, up 25%.
Siding & Trim net sales rose by 10% to $766.0 million, though organic sales declined by 3%. Its operating income dropped by 25% to $224.0 million.
Its Deck, Rail & Accessories segment, which was previously AZEK’s, posted a 6% increase in net sales.
Australia and New Zealand fibre cement net sales fell by 10% to $132.9 million, which the company credited to lower volumes and higher prices following the closure of its Philippines manufacturing plant in 2024. European building products sales grew by 18% to $137.5 million.
James Hardie also has appointed AZEK CFO Ryan Lada as its new chief financial officer, it said today. Lada will take over the role immediately, with outgoing CFO Rachel Wilson remaining in an advisory capacity until March.
The company has appointed former Inchcape chair Nigel Stein to chair its board of directors.
It has raised its guidance for the 2026 fiscal year, and now projects Siding & Trim net sales of $2.925-2.995 billion, up from $2.675-2.850 billion. It expects Deck, Rail & Accessories net sales will be $780-800 million.
James Hardie’s (ASX: JHX) share price was $27.37 at 3:35 pm (AEDT), up from its previous close at $25.43. Its market capitalisation is $15.74 billion.
