James Hardie Industries Reports Q3 FY26 Results
James Hardie Industries plc (NYSE / ASX: JHX), a global leader in exterior home and outdoor living solutions, today released its financial results for the third quarter ending December 31, 2025.
CEO Commentary
Aaron Erter, CEO of James Hardie, stated, “In the third quarter, we achieved or exceeded all financial commitments despite a mixed macroeconomic backdrop. We are optimizing our manufacturing footprint and aligning costs with the stabilizing demand environment. These steps are expected to enhance near-term profitability while positioning us for sustainable growth when conditions improve.”
Erter continued, “Siding & Trim organic net sales were modestly lower, while Adjusted EBITDA margins improved nearly 500 basis points sequentially, reflecting price/mix favorability and Hardie Operating System (HOS) efficiency gains. Deck, Rail & Accessories (DR&A) delivered mid-single-digit sell-through growth, demonstrating successful channel expansion and product innovation.”
He also highlighted strong confidence in the James Hardie–AZEK combination, noting early wins with dealers, contractors, and homebuilders, and surpassing the FY26 cost synergy target of $125 million. “These efforts will drive revenue synergies in FY27 and beyond, accelerating material conversion across exteriors and outdoor living.”
Consolidated Financial Highlights
| Metric | Q3 FY26 | Q3 FY25 | Change | 9M FY26 | 9M FY25 | Change |
|---|---|---|---|---|---|---|
| Net Sales (US$M) | 1,239.8 | 953.3 | +30% | 3,431.9 | 2,906.0 | +18% |
| Operating Income (US$M) | 176.2 | 206.1 | -15% | 338.8 | 593.8 | -43% |
| Operating Margin | 14.2% | 21.6% | -740bps | 9.9% | 20.4% | -1,050bps |
| Adjusted EBITDA (US$M) | 329.9 | 262.1 | +26% | 884.9 | 810.8 | +9% |
| Adjusted EBITDA Margin | 26.6% | 27.5% | -90bps | 25.8% | 27.9% | -210bps |
| Net Income (US$M) | 68.7 | 141.7 | -52% | 75.5 | 380.4 | -80% |
| Adjusted Net Income (US$M) | 142.2 | 153.6 | -7% | 423.1 | 488.2 | -13% |
| Diluted EPS (US$) | 0.12 | 0.33 | -64% | 0.14 | 0.88 | -84% |
| Adjusted Diluted EPS (US$) | 0.24 | 0.36 | -31% | 0.79 | 1.13 | -30% |
Segment Results
Siding & Trim
| Metric | Q3 FY26 | Q3 FY25 | Change | 9M FY26 | 9M FY25 | Change |
|---|---|---|---|---|---|---|
| Net Sales (US$M) | 788.3 | 719.3 | +10% | 2,196.1 | 2,144.4 | +2% |
| Operating Income (US$M) | 202.9 | 209.3 | -3% | 515.1 | 638.5 | -19% |
| Operating Margin | 25.7% | 29.1% | -340bps | 23.5% | 29.8% | -630bps |
| Adjusted EBITDA (US$M) | 268.6 | 250.5 | +7% | 698.4 | 754.0 | -7% |
| Adjusted EBITDA Margin | 34.1% | 34.8% | -70bps | 31.8% | 35.2% | -340bps |
Net sales grew 10% largely due to the AZEK Exteriors acquisition. On an organic basis, sales declined 2%, driven by lower volumes despite higher average prices. Single-family exterior volumes declined, particularly in the South, due to affordability challenges and elevated housing inventories, while multi-family volumes increased.
Growth Strategies:
- R&R Focus: Targeting repair and remodel opportunities in the Northeast and Midwest.
- New Construction Penetration: Expanding with custom and local builders.
- Product Innovation: Launching differentiated siding products.
- Installation Efficiency: Partnering with contractors to improve installation speed and reduce costs.
Deck, Rail & Accessories (DR&A)
| Metric | Q3 FY26 | 9M FY26 |
|---|---|---|
| Net Sales (US$M) | 194.1 | 449.9 |
| Operating Loss (US$M) | (24.0) | (35.9) |
| Operating Margin | -12.4% | -8.0% |
| Adjusted EBITDA (US$M) | 48.7 | 127.3 |
| Adjusted EBITDA Margin | 25.1% | 28.3% |
Net sales increased 2% year-over-year, with mid-single-digit sell-through growth. Adjusted EBITDA margin benefited from top-line growth but was partially offset by investments for expansion. The focus remains on new product launches and channel growth, leveraging the combined James Hardie–AZEK portfolio.
Australia & New Zealand (ANZ)
| Metric | Q3 FY26 | Q3 FY25 | Change | 9M FY26 | 9M FY25 | Change |
|---|---|---|---|---|---|---|
| Net Sales (US$M) | 126.5 | 118.1 | +7% | 381.0 | 401.8 | -5% |
| Operating Income (US$M) | 35.6 | 34.8 | +2% | 111.4 | 68.0 | +64% |
| Operating Margin | 28.1% | 29.3% | -120bps | 29.2% | 17.2% | +1,200bps |
| Adjusted EBITDA (US$M) | 41.2 | 39.7 | +4% | 127.7 | 139.7 | -9% |
| Adjusted EBITDA Margin | 32.6% | 33.5% | -90bps | 33.5% | 34.7% | -120bps |
Sales increased 7%, driven by low-single-digit volume growth and price increases. Focus areas include new customer acquisition, project conversion, and accelerating fiber cement adoption in new construction.
Europe
| Metric | Q3 FY26 | Q3 FY25 | Change | 9M FY26 | 9M FY25 | Change |
|---|---|---|---|---|---|---|
| Net Sales (US$M) | 130.9 | 115.9 | +13% | 404.9 | 359.8 | +13% |
| Operating Income (US$M) | 9.1 | 3.6 | +153% | 37.9 | 24.7 | +53% |
| Operating Margin | 7.0% | 3.1% | +390bps | 9.4% | 6.8% | +260bps |
| EBITDA (US$M) | 16.6 | 11.9 | +39% | 59.5 | 48.6 | +22% |
| EBITDA Margin | 12.7% | 10.3% | +240bps | 14.7% | 13.5% | +120bps |
Net sales increased 13%, with mid-single-digit volume growth. EBITDA margin improvements were supported by better plant performance and lower raw material costs. Strategic investments in high-value products and market expansion, particularly in Germany, remain a focus.
FY26 Guidance
- Siding & Trim Net Sales: $2.953–$2.998B (up from $2.925–$2.995B)
- DR&A Net Sales: $787–$800M (prev. $780–$800M)
- Adjusted EBITDA (Siding & Trim): $939–$962M (prev. $920–$955M)
- Adjusted EBITDA (DR&A): $219–$224M (prev. $215–$225M)
- Total Adjusted EBITDA: $1.232–$1.263B (prev. $1.20–$1.25B)
- Free Cash Flow: At least $200M
SOURCE LINK : https://www.businesswire.com/
