James Hardie Reports Second Quarter FY27 Results; Delivers Strong Growth and Reaffirms Fiscal 2027 Outlook Second Quarter Net Sales of $1.564 Billion…
James Hardie Industries plc (JHX) filed an SEC Form 8-K — Results of Operations and Financial Condition. Earnings Release November 5, 2026 Exhibit 99.1 James Hardie Reports Second Quarter FY27 Results; Delivers Strong Growth and Reaffirms Fiscal 2027 Outlook Second Quarter Net Sales of $1.564 Billion, including discontinued operations Second Quarter Highlights (Continuing Operations
How this was made
The 30-second read
Why it matters
The reaffirmed guidance and raised free cash flow target provide a clear catalyst for investors, likely supporting the stock in the near term.
Market read
The earnings beat and reaffirmed outlook are material for the stock and may influence peers in the building‑materials sector.
What to watch
Higher freight and diesel costs could pressure margins despite top‑line growth.
James Hardie Reports Second Quarter FY27 Results; Delivers Strong Growth and Reaffirms Fiscal 2027 Outlook
Continuing-operations net sales rose 24%, Adjusted EBITDA increased 44% and Adjusted EBITDA Margin expanded 450 basis points, while the Company reaffirmed consolidated FY27 net sales and Adjusted EBITDA guidance and raised its free cash flow target to more than $650 million.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q2 FY27 net sales from continuing operationsGAAP | $1.43B | – | +24% |
| Q2 FY27 total net sales including discontinued operationsGAAP | $1.56B | – | – |
| Q2 FY27 gross profitGAAP | $562.4M | – | – |
| Q2 FY27 selling, general and administrative expensesGAAP | $268.5M | – | – |
| Q2 FY27 research and development expensesGAAP | $14.6M | – | – |
| Q2 FY27 restructuring expensesGAAP | $800K | – | – |
| Q2 FY27 acquisition and divestiture related expensesGAAP | $14.9M | – | – |
| Q2 FY27 operating incomeGAAP | $263.3M | – | NM |
| Q2 FY27 operating income marginGAAP | 18.4% | – | +1,730bps |
| Q2 FY27 interest, netGAAP | $54.8M | – | – |
| Q2 FY27 income before income taxesGAAP | $227.4M | – | – |
| Q2 FY27 income tax expenseGAAP | $77.6M | – | – |
| Q2 FY27 effective tax rateGAAP | 34.1% | – | – |
| Q2 FY27 net income from continuing operationsGAAP | $149.8M | – | NM |
| Q2 FY27 net income from continuing operations per common share - dilutedGAAP | $0.26 | – | NM |
| Q2 FY27 net income margin from continuing operationsGAAP | 10.5% | – | NM |
| Q2 FY27 income from discontinued operationsGAAP | $1.2M | – | (86%) |
| Q2 FY27 net incomeGAAP | $151M | – | – |
| Q2 FY27 net income per share - dilutedGAAP | $0.26 | – | – |
| Q2 FY27 Adjusted Net Incomenon-GAAP | $248.5M | – | +67% |
| Q2 FY27 Adjusted Diluted Earnings Per Sharenon-GAAP | $0.42 | – | +68% |
| Q2 FY27 Adjusted EBITDAnon-GAAP | $454.7M | – | +44% |
| Q2 FY27 Adjusted EBITDA Marginnon-GAAP | 31.8% | – | +450bps |
| Q2 FY27 Adjusted Income Before Income Taxesnon-GAAP | $317.9M | – | – |
| Q2 FY27 Adjusted Income Tax Expensenon-GAAP | $69.4M | – | – |
| Q2 FY27 Adjusted Effective Tax Ratenon-GAAP | 21.8% | – | – |
| Six Months FY27 net sales from continuing operationsGAAP | $2.75B | – | +43% |
| Six Months FY27 gross profitGAAP | $1.06B | – | – |
| Six Months FY27 operating incomeGAAP | $462.2M | – | +235% |
| Six Months FY27 operating income marginGAAP | 16.8% | – | +960bps |
| Six Months FY27 net income from continuing operationsGAAP | $240.4M | – | NM |
| Six Months FY27 net incomeGAAP | $255.3M | – | – |
| Six Months FY27 net income per share - dilutedGAAP | $0.44 | – | – |
| Six Months FY27 Adjusted Net Incomenon-GAAP | $443.2M | – | +63% |
| Six Months FY27 Adjusted Diluted Earnings Per Sharenon-GAAP | $0.76 | – | +41% |
| Six Months FY27 Adjusted EBITDAnon-GAAP | $847.4M | – | +60% |
| Six Months FY27 Adjusted EBITDA Marginnon-GAAP | 30.9% | – | +320bps |
| Six Months FY27 net cash provided by operating activitiesGAAP | $693.7M | – | – |
| Six Months FY27 capital expendituresGAAP | $158.3M | – | – |
| Six Months FY27 Free Cash Flownon-GAAP | $535.4M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Siding & Trim, Q2 FY27Continued fiber cement volume growth, favorable price/mix, and traction from strategic growth initiatives; fiber cement sell-through increased low double digits and multi-family volume was up high-teens. | $880.3M | – | +15% |
| Deck, Rail & Accessories, Q2 FY27Strong sell-through, completion of planned channel inventory normalization in the first quarter, and the initial load-in of new business with Boise Cascade. | $387M | – | +51% |
| Australia & New Zealand, Q2 FY27High single digit volume growth and a foreign exchange tailwind; volume growth reflected resilient Australian housing activity, share gains and continued conversion from competing materials. | $160.9M | – | +21% |
| Australia & New Zealand, Q2 FY27 net sales in Australian dollarsHigh single digit volume growth and a foreign exchange tailwind in the period. | A$227.9M | – | +12% |
Q3 FY27 Guidance and Updated Full Year FY27 Planning Assumptions outlook
- RevenueQ3 FY27 Total Net Sales: $1.058 to $1.140 billion; FY27 Total Net Sales: $4.990 to $5.133 billion
- NoteQ3 FY27 Net Sales for Siding & Trim: $758 to $800 million
- NoteQ3 FY27 Net Sales for Deck, Rail & Accessories: $164 to $190 million
- NoteQ3 FY27 Adjusted EBITDA for Siding & Trim: $245 to $262 million
- NoteQ3 FY27 Adjusted EBITDA for Deck, Rail & Accessories: $38 to $49 million
- NoteQ3 FY27 Total Adjusted EBITDA: $298 to $320 million
- NoteFY27 Net Sales for Siding & Trim: $3.236 to $3.314 billion
- NoteFY27 Net Sales for Deck, Rail & Accessories: $1.198 to $1.240 billion
- NoteFY27 Adjusted EBITDA for Siding & Trim: $1.046 to $1.085 billion
- NoteFY27 Adjusted EBITDA for Deck, Rail & Accessories: $355 to $375 million
- NoteFY27 Total Adjusted EBITDA: $1.446 to $1.534 billion
- NoteFY27 Free Cash Flow: More than $650 million
Capital returns
- $111 million of term loan debt repaid in the quarter.
- The Company expects to apply approximately $600 million of proceeds from the Europe divestiture toward debt repayment.
- Capital allocation priorities for FY2027 are unchanged: invest in organic growth and reduce leverage.
What drove it
- Siding & Trim fiber cement volumes increased mid-single digits, while multi-family was up high-teens.
- Siding & Trim margin expansion reflected favorable net price and mix realization, volume leverage, lower manufacturing costs, HOS savings, footprint optimization and disciplined SG&A management.
- DR&A reported low double-digit sell-through, supported by material conversion from wood, retail demand and incremental shelf space across the combined platform.
- DR&A Adjusted EBITDA Margin benefited from higher volume and pricing, improved plant performance, normalized production, cost synergies and HOS savings.
- ANZ benefited from higher volume, manufacturing efficiencies, lower input costs and the non-recurrence of a prior-year provision related to the closure of a New Zealand site.
- Cost synergies are ahead of schedule and commercial synergies are on track to reach the fiscal 2027 target.
Concerns
- The Company expects Adjusted EBITDA to be lower in the third quarter and second half due to DR&A seasonality in Q3, incremental freight costs and the weaker macro environment.
- The U.S. housing market remains challenging, particularly new construction.
- Higher freight and diesel costs partially offset Siding & Trim profitability gains.
- Material inflation and freight costs partially offset DR&A profitability gains.
- Europe is presented within discontinued operations following the announced strategic divestiture and intended closure of European fiber cement operations.
What to watch
- Q3 FY27 total net sales guidance of $1.058 to $1.140 billion and total Adjusted EBITDA guidance of $298 to $320 million.
- The expected lower Adjusted EBITDA in Q3 and the second half, driven by DR&A seasonality, incremental freight costs and the weaker macro environment.
- Execution of the Boise Cascade new-business load-in and expanded distribution partnerships.
- Progress toward commercial synergies, which are on track for the fiscal 2027 target, and cost synergies, which are ahead of schedule.
- The Europe divestiture, expected to close in the first half of calendar 2027, and the planned use of approximately $600 million of proceeds for debt repayment.
- Progress toward the target of net leverage below 2.0x by the end of the second quarter of FY2028.
Balance sheet and cash flow
- Cash and cash equivalents were $323.1 million as of September 30, 2026, compared with $265.4 million as of March 31, 2026.
- Long-term debt was $3,962.6 million as of September 30, 2026, compared with $4,491.2 million as of March 31, 2026.
- Long-term debt, current portion was $54.7 million as of September 30, 2026, compared with $43.8 million as of March 31, 2026.
- First half operating cash flow totaled $693.7 million, up from $254.3 million a year ago.
- First half Free Cash Flow was $535.4 million versus $58.4 million for the prior year period.
- Capital expenditures totaled $158.3 million for the six month period.
- The Company targets net leverage below 2.0x by the end of the second quarter of FY2028.
Analysis
James Hardie reported a strong Q2 FY27 from continuing operations. Net sales were $1,428.2 million, up 24%, and operating income rose to $263.3 million from $12.5 million. Net income from continuing operations was $149.8 million compared with a loss of $64.3 million, while Adjusted Net Income increased 67% to $248.5 million and Adjusted Diluted Earnings Per Share increased 68% to $0.42. The quarter also included $135.3 million of net sales from discontinued operations, producing total net sales of $1,563.5 million.
Demand and commercial execution were broad based. Siding & Trim net sales increased 15% to $880.3 million, driven by fiber cement volume growth, favorable price/mix and strategic growth initiatives. DR&A net sales increased 51% to $387.0 million, reflecting robust sell-through, normalized channel inventory, and Boise Cascade load-in activity. ANZ net sales increased 21% to $160.9 million, or 12% in Australian dollars, supported by volume growth, share gains, material conversion and foreign exchange.
Profitability improved materially across the portfolio. Consolidated Adjusted EBITDA increased 44% to $454.7 million and Adjusted EBITDA Margin expanded 450 basis points to 31.8%. Siding & Trim Adjusted EBITDA Margin rose 540 basis points to 34.6%, while DR&A Adjusted EBITDA Margin rose 260 basis points to 33.3%. Management cited volume, price and mix, manufacturing savings, HOS savings and operating leverage as key supports, while identifying freight, diesel and material inflation as offsets. The Company also revised non-GAAP measure definitions beginning in the first quarter FY27 to exclude share-based compensation costs, and recast prior periods accordingly.
Cash generation and debt reduction were significant components of the release. First-half operating cash flow was $693.7 million and Free Cash Flow was $535.4 million, compared with $254.3 million and $58.4 million, respectively, in the prior-year period. The Company repaid $111 million of term loan debt in the quarter and expects to use approximately $600 million of anticipated Europe divestiture proceeds toward debt repayment. It reaffirmed FY27 consolidated net sales and Adjusted EBITDA planning assumptions and raised its Free Cash Flow target to more than $650 million, while cautioning that Adjusted EBITDA is expected to be lower in Q3 and the second half because of DR&A seasonality, incremental freight costs and the weaker macro environment.
Management, verbatim
We delivered a strong second quarter, with sales from continuing operations up 24%, well above the market and at the high end of our guidance range. Adjusted EBITDA was above the guidance range, with margins expanding 450 basis points. North America fiber cement and Deck, Rail & Accessories both delivered double-digit sell-through growth, driven by consistent execution against our sales initiatives, material conversion opportunities and commercial synergies. Australia & New Zealand also delivered strong growth, driven by continued share gains.
Aaron Erter, CEO of James Hardie
Halfway through the year, we are delivering on the commitments we set for fiscal 2027. While the U.S. housing market remains challenging, particularly new construction, our plan does not depend on a near-term recovery. Based on our broad set of self-help growth levers and our confidence in continuing to outperform the market, we are reaffirming our consolidated fiscal 2027 sales and Adjusted EBITDA outlook and raising our free cash flow target.
Aaron Erter, CEO of James Hardie
We expect Adjusted EBITDA to be lower in the third quarter and second half driven by DR&A seasonality in Q3, incremental freight costs and the weaker macro environment. Strong cash generation is accelerating our deleveraging.
Ryan Lada, CFO
Not in the filing
stated, not guessed- Q2 FY27 gross margin and prior-year gross margin were not reported.
- Q2 FY27 operating cash flow, capital expenditures and Free Cash Flow were not separately reported.
- Q2 FY27 net leverage was not reported.
- Dividend and share repurchase activity were not reported.
- Prior-quarter comparisons for reported income statement metrics were not reported.
- Prior guidance was not provided, so no comparison of actual results with prior guidance is available.
- Guidance for gross margin, operating expenses and tax rate was not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
James Hardie, a leading exterior home solutions provider, filed a Form 8‑K with its Q2 FY27 earnings, highlighting strong sales, margin expansion, and cost synergies.
Ticker impact
James Hardie reported Q2 FY27 results with net sales up 24% YoY to $1.428B and reaffirmed FY27 outlook, raising free cash flow target above $650M.
likely upside as the market prices in the strong growth and reaffirmed outlook
Quarterly numbers beat expectations and guidance was reaffirmed, which typically supports a price rally.
Market effects
Building‑materials sector may see broader optimism from Hardie's growth and cost‑synergy execution.
North America exposure strengthens as the company highlights double‑digit growth in that region.
Limited to construction‑materials niche; no broad macro impact.
Counterpoint
If the housing market remains soft, the reaffirmed outlook could be overly optimistic, risking a pullback.
Key entities
- companyJames Hardie Industries plc
Exterior home and outdoor living solutions manufacturer.
- executiveAaron Erter
CEO of James Hardie who commented on the results.
