James Hardie Industries Delivers 'Solid Quarter' in Q3

Executives highlight progress on commercial execution, manufacturing optimization, and AZEK integration.

Published on Feb. 10, 2026

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James Hardie Industries (NYSE:JHX) executives said the company delivered a 'solid quarter,' exceeding prior guidance and making progress on commercial execution, manufacturing optimization, and integration work tied to its combination with AZEK. Management emphasized that while near-term market conditions for siding remain mixed, it expects a return to organic revenue growth and adjusted EBITDA margin expansion in fiscal 2027, driven by operational initiatives, product and installation innovation, and commercial synergies across the combined portfolio.

Why it matters

James Hardie's performance and outlook provide insights into the state of the siding and building materials market, which has faced mixed demand conditions due to factors like exposure to new construction and regional variations. The company's actions to optimize its manufacturing network and drive synergies from the AZEK acquisition also highlight strategies to navigate near-term challenges and position the business for long-term growth.

The details

In the fiscal third quarter, total net sales rose 30% to $1.24 billion, including $275 million of acquired AZEK sales. Organic sales increased 1%. Adjusted EBITDA was $330 million, representing a 26.6% adjusted EBITDA margin. Adjusted net income was $142 million and adjusted diluted earnings per share was $0.24. The company said market conditions for siding and trim remained mixed, with single-family exteriors volumes down high single digits, multifamily up high single digits, and interiors down double digits. Siding and trim adjusted EBITDA was $269 million, and adjusted EBITDA margin was 34.1%, which management described as nearly a 500 basis point sequential improvement. The company also detailed network optimization steps, including the closure of two older, less efficient plants, which are expected to generate $25 million in annual cost savings.

  • On January 15, the company decided to close two older, less efficient plants and shift production to newer facilities.
  • The $25 million in annual cost savings from the plant closures are expected to begin in the first quarter of fiscal 2027.

The players

James Hardie Industries

A global manufacturer of high-performance fiber cement building products, specializing in exterior cladding, trim and soffit, as well as interior backerboard solutions.

AZEK

A company that James Hardie Industries combined with, expanding its portfolio of building materials products.

Ryan

The CFO of James Hardie Industries.

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What they’re saying

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