James Hardie Industries PLC (JHIUF) Q3 2026 Earnings Call Highlights: Strong Sales Growth and …

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Wed, February 11, 2026 at 2:01 PM GMT+9 4 min read

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**Total Net Sales:** $1.24 billion, a 30% increase, including $275 million from the AZEK acquisition.

**Organic Sales Growth:** 1% increase.

**Adjusted EBITDA:** $330 million with a 26.6% margin.

**Adjusted Net Income:** $142 million.

**Adjusted Diluted EPS:** $0.24.

**Free Cash Flow:** $261 million year to date.

**Siding & Trim Net Sales:** Up 10%, including $81 million from AZEK.

**Siding & Trim Adjusted EBITDA:** $269 million with a 34.1% margin.

**Deck, Rail & Accessories Net Sales:** Up 2% with mid-single-digit sell-through growth.

**Deck, Rail & Accessories Adjusted EBITDA:** $49 million with a 25.1% margin.

**Australia and New Zealand Net Sales:** Up 7% with a 32.6% adjusted EBITDA margin.

**Europe Net Sales:** Up 13% with a 12.7% adjusted EBITDA margin.

**Full-Year Siding & Trim Guidance:** Net sales of $2.953 billion to $2.998 billion; adjusted EBITDA of $939 million to $962 million.

**Full-Year Deck, Rail & Accessories Guidance:** Net sales of $787 million to $800 million; adjusted EBITDA of $219 million to $224 million.

**Full-Year Adjusted EBITDA Guidance:** $1.232 billion to $1.263 billion.

**Capital Expenditures:** Approximately $400 million for full-year '26.

**Net Debt:** $4.3 billion with a net leverage of approximately 3 times.

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Release Date: February 10, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

James Hardie Industries PLC (JHIUF) exceeded its guidance for the fiscal third quarter of 2026, demonstrating strong execution and commercial momentum.

The company reported a 30% increase in total net sales to $1.24 billion, including $275 million from the AZEK acquisition.

Siding & Trim adjusted EBITDA margin improved by nearly 500 basis points sequentially, reflecting favorable price mix.

The integration with AZEK is progressing well, with significant commercial opportunities and cost synergies already realized.

The company is focused on innovation, introducing new products like TimberHue and improving installation techniques to enhance contractor efficiency by approximately 30%.

Negative Points

Organic net sales in the legacy James Hardie North America Fiber Cement business declined by 2% due to lower volumes.

The company made the difficult decision to close two older, less efficient plants, which will result in a $25 million annual cost saving but may impact production capacity temporarily.

Market conditions remain mixed, with new home market demand uncertain and repair and remodel demand stabilizing at low levels.

The company faces challenges in new construction activity, particularly in regions like Texas, the West, and the Southeast, where demand remains soft.

There is a modest expectation of inflation on the fiber cement side, which could impact costs in the latter half of 2027.

 






Story Continues  

Q & A Highlights

Q: Can you provide an update on regional variations in siding sales and expectations for the near term? A: Aaron Erter, CEO: New construction activity is challenging across most regions, particularly in Texas, the West, and the Southeast. Texas, being significant, shows signs of normalization despite recent weather delays. The Southeast remains soft, while the Midwest is comparatively resilient. Repair and remodel demand is stabilizing, with improved sentiment across regions. Overall, new construction remains challenging, but repair and remodel is stabilizing.

Q: Are you seeing any potential inflation in siding inputs as we head into the new year? A: Ryan Lada, CFO: We expect modest inflation on the fiber cement side, primarily in the back half of 2027, but nothing drastic at this point.

Q: How have recent price increases been accepted by customers, and what are your expectations for the spring selling season? A: Aaron Erter, CEO: Price increases have been effective since January 1 and have been well accepted by customers. We see benefits from pricing and mix, particularly on the fiber cement side.

Q: Are the early wins in commercial synergies expected to impact FY26? A: Aaron Erter, CEO: Many sales synergies will start to impact the P&L in FY27. We have a clear line of sight to our $125 million revenue synergy target as we exit FY27.

Q: What are the expectations for Siding & Trim volumes and margins in the fourth quarter? A: Aaron Erter, CEO: We are facing a comp from an inventory build last year. Ryan Lada, CFO: The margin outlook reflects a step-up in marketing activity in the fourth quarter, impacting margins.

Q: Can you elaborate on the large distributor committing to One Hardie and if there are more in the pipeline? A: Jonathan Skelly, President and GM - North America: Customers welcome the opportunity to consolidate with market-leading brands. This confidence supports our fiscal '27 synergy targets.

Q: How do you expect commercial synergies to impact working capital and inventory management? A: Ryan Lada, CFO: There is a build on our balance sheet to satisfy commercial synergies. As these normalize, inventory levels should come down. Network redesign benefits are not majorly contemplated.

Q: What are the drivers of mix improvement in fiber cement pricing, and will it continue? A: Aaron Erter, CEO: Price accounted for about 4%, and mix for over 1%. Selling more ColorPlus contributes to mix benefits, and less new construction product sales also impact mix.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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