James Hardie Faces Market Headwinds but Sees Modest Growth in Key Segments
James Hardie Industries has reported preliminary Q2 FY26 results that surpass expectations, driven by resilient Siding & Trim sales and steady progress integrating AZEK. The company hints at a modestly improved outlook heading into the full fiscal year.
- Preliminary Q2 net sales of $1.29–1.30 billion
- Adjusted EBITDA between $326–331 million
- Siding & Trim sales decline less severe than anticipated
- AZEK segment posts mid-single digit growth
- Company to update full-year guidance in November
Preliminary Results Show Resilience Amid Market Challenges
James Hardie Industries plc, a global leader in exterior home solutions, has released its preliminary financial results for the second quarter ending September 30, 2025. The company reported net sales ranging from $1.29 billion to $1.30 billion and adjusted EBITDA between $326 million and $331 million. Adjusted net income is expected to fall between $151 million and $157 million, with earnings per share estimated at $0.26 to $0.27.
These figures, while preliminary and subject to final audit, indicate a solid performance in a market environment that remains challenging, particularly for single-family new construction.
Siding & Trim Segment Outperforms Expectations
CEO Aaron Erter highlighted that the Siding & Trim segment's organic net sales declined only in the low single digits compared to the prior year, a better outcome than the company had modeled. Inventory reductions by distributors and dealers were also less pronounced than anticipated, underscoring strong demand and brand loyalty. This resilience suggests that customers prioritize maintaining product availability despite broader market headwinds.
Erter expressed cautious optimism, noting a modestly improved outlook for the Siding & Trim business and promising opportunities to expand market share through existing partnerships.
AZEK Integration Progresses, Driving Growth
The integration of AZEK, acquired to broaden James Hardie's product portfolio, remains on track. The Deck, Rail & Accessories segment under AZEK posted mid-single digit growth in both net sales and sell-through compared to the previous year. Although the third fiscal quarter is typically slower for this segment, it is a critical period for dealers planning shelf space for the upcoming year.
James Hardie sees clear opportunities to secure additional shelf space and cross-sell its siding and trim products within AZEK’s dealer network, particularly in repair and remodel markets. These early signs of synergy reinforce confidence in the company’s strategy to leverage its comprehensive product range and trusted brands.
Looking Ahead
The company plans to provide a full-year guidance update during its Q2 earnings call scheduled for mid-November. Investors will be watching closely for how James Hardie navigates ongoing market uncertainties and capitalizes on integration synergies to sustain growth.
Bottom Line?
James Hardie’s preliminary Q2 results hint at steady resilience and strategic momentum, setting the stage for a pivotal earnings update in November.
Questions in the middle?
- How will James Hardie’s full-year guidance adjust in light of the improved Siding & Trim outlook?
- What specific synergy targets and cost savings are expected from the AZEK integration next fiscal year?
- How might ongoing challenges in single-family new construction impact future sales beyond Q2?
