James Hardie Industries plc reported its second‑quarter 2026 results on November 17, 2025, showing net sales of $1.29 billion—up 34% year‑over‑year—while organic sales slipped 1% as the repair‑and‑remodel segment weakened. The jump in top line was driven almost entirely by the newly acquired AZEK business, which added $200 million in revenue and offset the decline in legacy Siding & Trim sales.
The company posted adjusted earnings before interest, taxes, depreciation and amortization of $330 million, giving an adjusted EBITDA margin of 25.5%. The margin compression from the 27.4% margin reported in Q1 was largely due to higher raw‑material costs and a shift toward lower‑margin AZEK products, as well as the cost absorption associated with lower manufacturing utilization in legacy North American operations.
Adjusted earnings per share reached $0.26, beating the consensus estimate of $0.24 by $0.02 (an 8.3% beat). The earnings beat was driven by disciplined cost management, strong pricing power in the AZEK portfolio, and the early realization of integration synergies that reduced operating expenses.
James Hardie raised its full‑year guidance, now projecting total net sales of $2.925 billion to $2.995 billion and total adjusted EBITDA of $1.20 billion to $1.25 billion—up from the prior guidance of $1.05 billion to $1.15 billion. The upward revision reflects management’s confidence in the continued performance of the AZEK business, the acceleration of cost‑synergy targets, and a favorable demand outlook for exterior and outdoor‑living products.
Capital expenditures for the year are capped at $400 million, with $75 million earmarked for AZEK integration activities. The company also reaffirmed a free‑cash‑flow target of at least $200 million for FY26. Ryan Lada, who joined the company as CFO on the same day, brings experience from AZEK and signals a focus on financial stewardship during the integration period.
The market reacted positively, with shares rising 5.87% to $17.67 in overnight trading after the results were released. Investors cited the earnings beat, the raised guidance, and the progress on AZEK integration as key drivers of the favorable reaction.
CEO Aaron Erter highlighted that the AZEK business is performing well and that synergy realization is ahead of schedule. He also noted that the company is targeting actions to improve manufacturing costs while continuing to enhance efficiency through the Hardie Operating System.
Headwinds for the quarter included a softer repair‑and‑remodel market, higher raw‑material costs, and lower manufacturing utilization in legacy operations. Tailwinds were driven by strong performance of the AZEK business, successful integration progress, and opportunities for material conversion and market expansion.
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