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

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

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 Performance

NYSE:JHX traded down $0.76 during midday trading on Friday, reaching $27.90. The stock had a trading volume of 12,569,878 shares, compared to its average volume of 7,374,396. The company has a quick ratio of 1.03, a current ratio of 1.59 and a debt-to-equity ratio of 0.66. The stock has a market cap of $16.19 billion, a P/E ratio of 45.73, a P/E/G ratio of 2.84 and a beta of 1.78. The firm has a fifty day simple moving average of $26.82 and a two-hundred day simple moving average of $24.49. James Hardie Industries has a 12-month low of $16.46 and a 12-month high of $31.43.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on JHX shares. Zacks Research downgraded shares of James Hardie Industries from a “hold” rating to a “strong sell” rating in a research note on Tuesday, October 6th. Stephens decreased their target price on James Hardie Industries from $34.00 to $33.00 and set an “overweight” rating for the company in a research report on Friday. Oppenheimer reaffirmed an “outperform” rating and set a $36.00 price target on shares of James Hardie Industries in a research report on Wednesday, September 16th. Citigroup downgraded James Hardie Industries from a “buy” rating to a “neutral” rating in a report on Monday, September 28th. Finally, Robert W. Baird decreased their price target on shares of James Hardie Industries from $34.00 to $32.00 and set an “outperform” rating for the company in a research note on Tuesday, October 13th. Ten research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $33.44.

Key Headlines Impacting James Hardie Industries

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

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.