The James Hardie Industries plc (ASX: JHX) share price has sank 29% after its FY26 first quarter update.
James Hardie says that it’s the industry leader in exterior home and outdoor living products, with a portfolio that includes fiber cement, fiber gypsum and composite, and PVC decking and railing products. Its brands include Hardie, TimberTech, AZEK Exteriors, Versatax, Fermacell and StruXure. Its products are sold in North America, Europe, Australia and New Zealand.
James Hardie FY26 first quarter update
The business reported that in the first three months of its 2026 financial year, net sales fell 9% to $899.9 million.
This led to its profit measures falling heavily. Adjusted EBITDA (EBITDA explained) declined 21% to $225.5 million, operating profit declined 41% to $138.6 million and net profit plummeted 60% to $62.6 million.
James Hardie said that this first quarter was largely as expected and reflected a normalisation of channel inventories due to “moderating growth expectations by customers as uncertainty built throughout April and early May.”
Divisional performance
North American fiber cement net sales declined 12% to $641.8 million and operating profit declined 29% to $161.2 million.
Asia Pacific fiber cement net sales declined 10% to $121.6 million and operating profit fell 8% to $37.8 million.
Europe building products net sales grew 7% to $136.5 million and operating profit climbed 24% to $15.1 million.
James Hardie also said that AZEK exceeded guidance again, sustaining top line momentum and impressive profitability. For deck, rail and accessories, solid sell-through growth demonstrates the resilient demand profile of the category and TimberTech’s value proposition. It’s working on integrating and delivering on cost and commercial synergies on an accelerated timeline.
Outlook for the James Hardie share price
The business said demand for repair, remodelling and new construction in North America is challenging, with uncertainty a “common thread” throughout conversations with customer and contractor partners.
Homeowners are reportedly delaying large-ticket remodelling projects and affordability is “the key impediment” to construction of new single-family homes, which is weaker than expected, leading to a reduction in company forecasts. Homebuilders are moderating their demand expectations.
However, James Hardie also said that it’s “conservatively expecting to benefit from recent homebuilder exclusivity wins and new product launches more so in FY27 and beyond, rather than in the back half of FY26 as previously planned.”
It’s possible that this period could be a good time to consider James Hardie shares because it may be approaching a cyclical low.
There are other ASX growth shares appeal to me more, though.
