The James Hardie Industries plc (ASX: JHX) share price is up 7% after releasing its FY27 first quarter update.
James Hardie Industries offers a number of different building products including fibre cement, fibre gypsum, and composite and PVC decking and railing products. Its global footprint is across the US, Canada, Europe, Australia and New Zealand. Some of its brands include Hardie, TimberTech, AZEK Exteriors, Versatex, Fermacell and StruXure.
FY26 first quarter update
James Hardie has given its preliminary expected range for selected financial results for the FY26 first quarter, which is significantly higher than what it was previously expecting.
For overall net sales, it now expects a range of between $1.45 billion to $1.475 billion, better than the previous expectations of between $1.31 billion to $1.35 billion.
Adjusted EBITDA (EBITDA explained) is expected to be between $399 million to $407 million, up from a range of between $354 million to $375 million.
The main reason for the strength of this upgrade is the siding and trim segment.
In the FY27 first quarter, net sales for siding and trim are now expected to be between $846 million to $860 million, up from previous expectations of between $758 million to $781 million. The siding and trim adjusted EBTDA is now expected to be between $282 million to $288 million, up from between $256 million to $272 million.
Management comments
The James Hardie CEO Aaron Erter said:
Our first quarter results are expected to exceed our prior guidance, primarily as a result of better-than-expected sales in Siding & Trim. Siding & Trim net sales reflected strong sell-through and underlying demand for our products. Our performance in Deck, Rail & Accessories was driven by channel inventory normalization and sell-through that improved throughout the quarter.
We are pleased with our fiscal first quarter preliminary results. We believe our performance reflects our team’s execution and growth above market, rather than a meaningful improvement in the overall U.S. housing market. That said, we are encouraged by the positive traction from our initiatives to grow our fiber cement business, continued conversion in decking and the positive contribution from sales and cost synergies. We will provide an update on our full year guidance with our first quarter earnings call.
Final thoughts on the James Hardie Industries share price
The company is doing a decent job at recovering investor confidence following the challenging period after acquiring AZEK.
Outperforming its expectations is always going to go down well with investors. I’m not looking to invest in it for my own portfolio, but I can see why some investors are wanting to increase ownership of the business.
It’s not cheap after today’s recent rise, but I think it could be one of the ASX growth shares to keep an eye on when conditions suggest it’s a good time to invest.
