Highlights

  • Net sales for the quarter ended June 30, 2026 were $1,474.6 million, compared with $899.9 million, and net income was $104.3 million.
  • Adjusted EBITDA, a non-GAAP measure, was $422.1 million with a margin of 28.6%, and diluted income per share was $0.18.
  • Gross debt was $4,306.3 million at June 30, 2026, after the company redeemed its $400 million senior unsecured notes due 2028.
  • Management expects fiscal 2027 sales of $5.564 billion to $5.723 billion and adjusted EBITDA of $1.536 billion to $1.625 billion.

James Hardie Industries plc (NYSE: JHX) shares were trading at USD 26.20 on October 27, 2026, up 0.69%, with a relative volume at time of 2.23. The exterior home and outdoor living products company completed its acquisition of The AZEK Company on July 1, 2025, redeemed its $400 million senior unsecured notes due 2028 in June 2026, and filed its quarterly report for the first quarter of fiscal 2027, ended June 30, 2026, on August 6, 2026.

James Hardie is incorporated in Ireland, and its principal executive offices are in Dublin. It provides exterior home and outdoor living solutions for new home construction, repair and remodel, and outdoor living markets, mainly in the United States, Australia and Europe. It reports four segments: Siding & Trim, Deck, Rail & Accessories, Australia & New Zealand, and Europe. Its fiscal year ends March 31.

First Quarter Results

Net sales were $1,474.6 million for the three months ended June 30, 2026, compared with $899.9 million, an increase of 64%. The company said the increase was primarily from the AZEK acquisition, which contributed net sales of $397.1 million, as well as higher net sales in the Siding & Trim, Australia & New Zealand and Europe segments. Gross profit was $548.7 million, a gross margin of 37.2% compared with 37.4%. The company cited amortization of AZEK intangible assets of $16.0 million.

Selling, general and administrative expenses were $295.4 million, compared with $156.1 million, including amortization of AZEK intangible assets of $61.6 million. Restructuring expenses were $5.2 million, related to the closure of a recycling plant in Oregon. Operating income was $217.7 million, compared with $138.6 million. Income tax expense was $53.0 million, compared with $27.1 million. Net income was $104.3 million, compared with $62.6 million, and diluted income per share was $0.18, compared with $0.15.

Adjusted net income, a non-GAAP measure, was $209.3 million, and adjusted diluted earnings per share was $0.36, compared with $0.32. Free cash flow, also non-GAAP, was $254.2 million, compared with $103.7 million.

Segment Results

Siding & Trim net sales were $859.8 million, compared with $641.8 million, with operating income of $214.9 million. AZEK contributed $92.0 million, and North America fiber cement sales increased 20%. Deck, Rail & Accessories net sales were $305.1 million, which the company said was 5% lower than AZEK's net sales for the comparable period before the acquisition, due to lower volumes. The segment reported an operating loss of $3.3 million, including AZEK intangible amortization of $59.1 million. Australia & New Zealand net sales increased 26%, and Europe net sales increased 15%.

Cash Flow, Debt and Asbestos Funding

Net cash provided by operating activities was $344.0 million, compared with $206.9 million. Cash and cash equivalents were $289.9 million, with $843.2 million available under the Revolving Facility. Gross debt decreased from $4,567.2 million at March 31, 2026 to $4,306.3 million, partly offset by a $150.0 million Revolving Facility draw.

During fiscal 2027, the company will contribute A$128.2 million to the Asbestos Injuries Compensation Fund, excluding interest, in quarterly installments. The first payment of A$32.1 million was made on July 1, 2026. The balance sheet shows asbestos liabilities of $128.8 million and $851.4 million.

Fiscal 2027 Outlook

On the first quarter call, management said that, starting this quarter, share-based compensation expense is excluded from adjusted EBITDA and other non-GAAP measures. It expects second quarter net sales of $1.485 billion to $1.575 billion and adjusted EBITDA of $420 million to $455 million. It raised its fiscal 2027 outlook to net sales of $5.564 billion to $5.723 billion and adjusted EBITDA of $1.536 billion to $1.625 billion. Management also expects free cash flow of more than $500 million, capital expenditures of approximately 6% to 7% of net sales, and cost pressure of approximately $80 million to $100 million.