The James Hardie Industries plc (ASX: JHX) share price has jumped 10% after a pleasing quarterly update.
James Hardie describes itself as the industry leader in exterior home and outdoor living solutions, with a portfolio that includes fiber cement, fiber gypsum, and composite and PVC decking and railing products. Some of its brands include Hardie, TimberTech, AZEK, Exteriors, Versatex, fermacell and StruXure. Its products are sold in North America, Europe, Australia and New Zealand.
Strong quarterly update
The company announced some preliminary expected financial results for its quarter for the three months to 30 September 2025.
Net sales are expected to be between $1.29 billion to $1.3 billion.
Adjusted EBITDA (EBITDA explained) is expected to be between $326 million to $331 million.
The adjusted net income is predicted to be between $151 million to $157 million, with adjusted earnings per share (EPS) expected to be between $0.26 to $0.27.
The company also reported that its net debt as of 30 September 2025 was $4.5 billion.
Management explained that its siding and trim sales exceeded expectations, though it still showed that organic net sales fell in the low single digits compared to the prior year. Plus, distributors and dealers reduced their inventory by less than the company had expected.
Single-family new construction remains challenging, but it said the commitment of customers to ensuring the availability of its products demonstrates the importance of the brand and strong partnerships.
Management commentary
The CEO of James Hardie, Aaron Erter said:
We are encouraged by our second quarter results and believe the outlook for Siding & Trim has modestly improved. We will provide an update to our full year guidance through March with our second quarter earnings call in November.
The integration of AZEK and our synergy capture initiatives remain on-track. AZEK performed well in the second quarter, with mid-single digit growth in both net sales and sell-through for Deck, Rail & Accessories vs. the prior year. While our fiscal third quarter, ending December 31st, is traditionally the seasonally smallest for Deck, Rail & Accessories shipments, it remains a key period when dealer partners make shelf space plans for the following year’s selling season. We have clear opportunities to secure incremental shelf space for our Deck, Rail & Accessories products and expand James Hardie Siding & Trim into AZEK’s loyal dealer network in key repair and remodel geographies.
Our ability to deliver against these new business opportunities reflects the value proposition we bring to our customers through a comprehensive product portfolio, trusted brands and long term partnerships. These shelf space opportunities represent early proof points that reinforce our confidence in our ability to drive commercial synergies next fiscal year.
Final thoughts on the James Hardie share price
Shareholders can seemingly be very happy after this update. This seems like the type of business that is quite cyclical, so it’s good to buy it during times of lower market confidence. Despite its rise, it is still down more than 40% from March 2024. But, it’s not one I’m personally looking to buy.
