James Hardie Industries (NYSE:JHX) Releases Quarterly Earnings Results, Beats Expectations By $0.04 EPS

Key Points

• James Hardie beat quarterly expectations: EPS was $0.42 versus the $0.38 consensus, while revenue reached $1.43 billion, above the $1.39 billion estimate and up 10.5% year over year.
• Operating performance strengthened, with second-quarter continuing-operations net sales up 24%, Adjusted EBITDA up 44%, and adjusted diluted EPS up 68%; management cited volume, pricing and mix, and cost savings.
• Near-term outlook was a concern: Fiscal Q3 revenue guidance of $1.1 billion fell short of the $1.2 billion consensus, amid expectations for weaker housing markets and continued cost pressures. Shares declined despite the earnings beat.

James Hardie Industries (NYSE:JHX - Get Free Report) announced its quarterly earnings data on Thursday. The construction company reported $0.42 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.38 by $0.04, FiscalAI reports. The business had revenue of $1.43 billion for the quarter, compared to analysts' expectations of $1.39 billion. James Hardie Industries had a return on equity of 10.56% and a net margin of 2.69%. The company's revenue for the quarter was up 10.5% compared to the same quarter last year. During the same period last year, the firm earned $0.26 earnings per share.

Here are the key takeaways from James Hardie Industries' conference call:

• Second-quarter continuing-operations net sales rose 24%, Adjusted EBITDA increased 44%, and margin expanded 450 basis points to 31.8%. Adjusted diluted EPS grew 68%, with management citing volume, price and mix, and operating savings.
• Fiber cement returned to growth, with North American revenue up 15%; ColorPlus sales rose 22% as the company pursued vinyl and wood conversions. Management said sales and sell-through remained well ahead of declining end markets.
• Deck, Rail & Accessories sales climbed 51%, but about 21 percentage points came from distributor changes and 16 points from channel inventory normalization; underlying growth was approximately 14%. Australia and New Zealand sales increased 21%.
• Management now expects the blended housing market to decline by a mid-single-digit percentage this year, with new construction down high single digits. Full-year guidance was reaffirmed, but implies second-half sales will be down slightly year over year and EBITDA lower; freight and other cost pressures are expected near the high end of the previously stated $80 million–$100 million range.
• The company raised its full-year free-cash-flow target to more than $650 million, reported net leverage of 2.3x, and said it remains on track to reach below 2x leverage by fiscal Q2 2028. It also said cost synergies are ahead of schedule, with $90 million realized to date and a $125 million run-rate target expected by fiscal year-end.

James Hardie Industries Stock Down 2.7%

JHX stock traded down $0.76 during midday trading on Friday, reaching $27.90. 12,569,878 shares of the company were exchanged, compared to its average volume of 7,821,158. The company has a market cap of $16.19 billion, a price-to-earnings ratio of 111.58, a price-to-earnings-growth ratio of 3.02 and a beta of 1.78. The company has a debt-to-equity ratio of 0.66, a quick ratio of 1.03 and a current ratio of 1.59. James Hardie Industries has a 1-year low of $16.46 and a 1-year high of $31.43. The stock's 50-day simple moving average is $26.86 and its 200 day simple moving average is $24.47.

Analysts Set New Price Targets

JHX has been the topic of several recent research reports. Melius Research assumed coverage on James Hardie Industries in a report on Tuesday, October 6th. They set a "buy" rating and a $36.00 price target on the stock. Loop Capital initiated coverage on James Hardie Industries in a research note on Monday, September 14th. They issued a "buy" rating and a $35.00 price objective for the company. Stephens lowered their price objective on James Hardie Industries from $34.00 to $33.00 and set an "overweight" rating for the company in a research report on Friday. UBS Group restated a "buy" rating on shares of James Hardie Industries in a research note on Wednesday, September 16th. Finally, Raymond James Financial set a $36.00 price objective on shares of James Hardie Industries in a research report on Tuesday, October 6th. Ten equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $33.44.

James Hardie Industries News Summary

Here are the key news stories impacting James Hardie Industries this week:

• Positive Sentiment: Fiscal Q2 adjusted EPS of $0.42 beat the $0.38 consensus, while revenue was $1.43 billion versus estimates of $1.39 billion, up 10.5% year over year. James Hardie Industries Fiscal Q2 Adjusted Earnings, Sales Rise
• Positive Sentiment: FY 2027 revenue guidance of $5.6 billion–$5.7 billion is above the $5.4 billion analyst consensus, supporting the company’s full-year growth outlook. James Hardie reaffirms FY 2027 guidance
• Neutral Sentiment: Truist and Stephens lowered their price targets to $37 and $33, respectively, but kept Buy and Overweight ratings, indicating continued optimism despite reduced expectations.
• Negative Sentiment: Fiscal Q3 revenue guidance of $1.1 billion came in below the $1.2 billion consensus. The softer near-term outlook is likely the main reason the shares have declined despite the quarterly earnings beat. James Hardie falls on disappointing fiscal 2027 outlook

About James Hardie Industries

James Hardie Industries plc is a global building materials manufacturer specializing in fiber cement products. Its portfolio includes exterior siding, trim, soffits, backer board and related solutions used in residential and commercial construction, remodeling and repair projects.

The company markets products under brands including James Hardie, HardiePlank, HardiePanel and HardieBacker. Fiber cement is designed to provide durability and resistance to moisture, fire, pests and changing weather conditions, making it an alternative to materials such as wood, vinyl and traditional cement products.

Founded in Australia in 1888, James Hardie has expanded into an international building products business serving customers across North America, Australia and New Zealand, Europe and other selected markets.

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