James Hardie reported preliminary Q1 net sales of $1.45B-$1.475B, above prior guidance, driven by strong siding and trim demand. Adjusted EBITDA also topped estimates. The company said execution drove growth, not the housing market. Full results due Aug. 7.
James Hardie Industries plc currently carries an Alpha Score of n/a, giving AlphaScala's model a neutral read on the setup.
James Hardie Industries (JHX) shares surged 7% in Sydney trading after the building-materials maker reported preliminary first-quarter results that topped its own guidance range. Net sales for the period ended June 30 are expected to land between $1.45 billion and $1.475 billion, above the previous forecast of $1.31 billion to $1.35 billion. Adjusted EBITDA is seen at $399 million to $407 million, up from a prior range of $354 million to $375 million.
The upgrade came from the siding and trim segment, which now expects net sales of $846 million to $860 million, versus an earlier forecast of $758 million to $781 million. Siding and trim adjusted EBITDA was guided to $282 million to $288 million, ahead of the $256 million to $272 million range.
Chief Executive Aaron Erter said the better-than-expected results reflected “strong sell-through and underlying demand” for siding and trim products, while the deck, rail and accessories business benefited from channel inventory normalization and improving sell-through during the quarter. Erter was careful to frame the beat as company-specific: “We believe our performance reflects our team’s execution and growth above market, rather than a meaningful improvement in the overall U.S. housing market.”
The company, which acquired AZEK in 2022 for $1.3 billion, has been working to regain investor confidence after the integration weighed on margins. The AZEK acquisition added decking and railing to the portfolio alongside the core fiber cement business. Erter said the company is “encouraged by the positive traction from our initiatives to grow our fiber cement business, continued conversion in decking and the positive contribution from sales and cost synergies.”
James Hardie reports full first-quarter earnings on Aug. 7. The company has not yet updated its full-year guidance. The stock trades near $45, up roughly 12% year to date. The JHX stock page is unscored by AlphaScala’s proprietary model as of this writing.
“We will provide an update on our full year guidance with our first quarter earnings call,” Erter said.
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