James Hardie Industries (NYSE:JHX) Issues Earnings Results, Beats Estimates By $0.04 EPS

James Hardie Industries (NYSE:JHX) issued its earnings results on Thursday. The construction company reported $0.42 earnings per share for the quarter, beating analysts’ consensus estimates of $0.38 by $0.04, FiscalAI reports. James Hardie Industries had a return on equity of 10.56% and a net margin of 2.69%. The firm had revenue of $1.43 billion for the quarter, compared to analysts’ expectations of $1.39 billion. During the same quarter last year, the firm earned $0.26 earnings per share. The firm’s revenue for the quarter was up 10.5% compared to the same quarter last year.

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%

NYSE:JHX traded down $0.76 during mid-day trading on Friday, hitting $27.90. The company had a trading volume of 12,569,878 shares, compared to its average volume of 7,374,396. The business has a fifty day simple moving average of $26.82 and a 200-day simple moving average of $24.49. The firm has a market capitalization of $16.19 billion, a price-to-earnings ratio of 45.73, a PEG ratio of 2.84 and a beta of 1.78. James Hardie Industries has a 1 year low of $16.46 and a 1 year high of $31.43. The company has a current ratio of 1.59, a quick ratio of 1.03 and a debt-to-equity ratio of 0.66.

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

Wall Street Analyst Weigh In

JHX has been the topic of a number of research reports. Zacks Research downgraded James Hardie Industries from a “hold” rating to a “strong sell” rating in a report on Tuesday, October 6th. Melius Research assumed coverage on shares of James Hardie Industries in a research report on Tuesday, October 6th. They set a “buy” rating and a $36.00 target price for the company. Loop Capital began coverage on shares of James Hardie Industries in a report on Monday, September 14th. They issued a “buy” rating and a $35.00 price target on the stock. Stephens reduced their price target on shares of James Hardie Industries from $34.00 to $33.00 and set an “overweight” rating on the stock in a research report on Friday. Finally, Citigroup downgraded shares of James Hardie Industries from a “buy” rating to a “neutral” rating in a research note on Monday, September 28th. Ten research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $33.44.

James Hardie Industries Company Profile

James Hardie Industries plc is a global building-materials company best known for manufacturing fiber-cement products for residential and commercial construction. Its offerings include exterior siding and cladding, trim, and interior products such as backerboard used in tile installations.

The company traces its history to 1888, when James Hardie established a business in Melbourne, Australia. It later developed and expanded its fiber-cement product business, becoming a major supplier of building products in several markets.

James Hardie serves customers primarily in North America, Australia and New Zealand, and Europe.