$JHX · James Hardie Industries plc
James Hardie reported Q2 FY27 (ended September 30, 2026) results: continuing-operations net sales of $1.428B, up 24% YoY, at the high end of guidance. Adjusted EBITDA was $454.7M (31.8% margin, +450bps), adjusted net income $248.5M (+67%), and adjusted diluted EPS $0.42 (+68%). GAAP net income from continuing operations was $149.8M versus a $64.3M loss a year ago. The company reaffirmed consolidated FY27 net sales and Adjusted EBITDA guidance and raised its free cash flow target to more than $650M.
- Siding & Trim net sales rose 15% to $880.3M, above the high end of guidance.
- Deck, Rail & Accessories net sales jumped 51% to $387.0M, including Boise Cascade load-in.
- Adjusted EBITDA margin expanded 450bps to 31.8%, above guidance.
- First-half free cash flow was $535.4M; $111M of term loan debt repaid in the quarter.
- FY27 free cash flow target raised to more than $650M; net leverage below 2.0x targeted by Q2 FY28.
Markets closed at filing; no regular-session reaction yet. Stock closed at $28.66, down 2.91% on the day, with extended-hours moves not captured here.
Strong double-digit growth and margin expansion with reaffirmed full-year guidance signal successful AZEK integration and share gains despite a weak housing market.
James Hardie's 24% sales growth and 450bps margin expansion contrast with a soft U.S. housing market, driven by material conversion share gains and AZEK integration synergies.
Management flags a challenging U.S. housing market, particularly new construction, and expects lower Adjusted EBITDA in Q3 and H2 on DR&A seasonality, incremental freight costs, and weaker macro conditions.