Group 1 - The core focus of recent events regarding James Hardie (JHX.us) is the stock price movement in January 2026 and the latest financial performance [1] Group 2 - On January 10, 2026, the stock price surged by 5.01% to $22.63, with a trading volume of 2.28523 million shares and a volatility of 4.14%. The overall construction materials industry rose by 2.62% on the same day [2] Group 3 - For the second quarter of 2026, the company reported revenue of $1.292 billion and earnings per share of $0.26, exceeding market expectations of $1.2866 billion in revenue and $0.25 in earnings per share [3] Group 4 - As of January 10, 2026, 67% of 21 rating agencies provided a "buy" recommendation, while 33% suggested "hold," with no "sell" ratings issued [4] Group 5 - Investors should monitor the company's upcoming financial reports, such as the third quarter of 2026, and industry trends, particularly changes in the North American residential market, which may continue to impact stock performance [5]

Commercial Strategy - The company is focused on reaccelerating organic growth in fiber cement and expanding margins through disciplined execution, innovation, and operational excellence [1] - The combination with AZAC is generating meaningful commercial opportunities and is expected to significantly contribute to top-line growth in the coming years [1][18] - The company aims to increase penetration in both new home and repair and remodel markets, which represent a significant revenue opportunity [8] Financial Performance - Total net sales grew 30% to $1,240 million, including $275 million from acquired AZEK sales, with organic sales increasing by 1% [20] - Adjusted EBITDA was $330 million with a margin of 26.6% [20] - The Siding and Trim segment saw net sales up 10%, including $81 million from the AZEK acquisition, but organic net sales were down 2% due to lower volumes [22] Cost Management - The company implemented manufacturing optimization actions, including the closure of two older plants, expected to generate annual cost savings of $25 million starting in FY '27 [6][24] - Adjusted EBITDA margin for Siding and Trim was 34.1%, reflecting a nearly 500 basis point sequential improvement due to favorable price mix [5][23] - The company is employing the Hardie operating system to optimize cost structure through network optimization and structural efficiency improvements [24] Market Outlook - The company expects organic net sales to decline modestly in the fiscal fourth quarter but is focused on driving growth in the Siding and Trim segment [7] - Demand trends in the repair and remodel market have stabilized at low levels, while new home market demand remains uncertain [7] - The company anticipates returning to organic revenue growth and adjusted EBITDA margin expansion in FY '27 [31] Product Innovation - The company is focused on product innovation, including the introduction of Timberhue, which combines a natural wood look with the durability of fiber cement [10] - New installation techniques are being developed to reduce overall installed costs and increase contractor efficiency by approximately 30% [10] - The company is committed to enhancing its product portfolio to drive material conversion and meet customer needs [12][33]

Core Viewpoint - James Hardie Industries plc (JHX) reported fiscal Q3 2026 numbers that pleased analysts and investors, leading to a share price increase, indicating a potential turnaround for the company [1] Financial Performance - The fiscal Q3 2026 results were positively received, suggesting improved financial health and performance for James Hardie Industries [1] Investor Sentiment - The positive earnings report has led to increased investor confidence, with many believing in a turnaround for the company [1]

Core Viewpoint - James Hardie Industries plc (JHX) reported fiscal Q3 2026 numbers that pleased analysts and investors, leading to a share price increase, indicating a potential turnaround for the company [1] Financial Performance - The fiscal Q3 2026 results showed positive performance, contributing to a favorable outlook among investors and analysts [1] Investor Sentiment - The reported results have led to increased optimism among long-term investors, particularly those with a 5-10 year investment horizon, suggesting a shift towards a more favorable investment climate for JHX [1]

Company Performance - James Hardie (JHX) has returned approximately 17.5% since the beginning of the calendar year, outperforming the average return of 16.6% for the Construction sector [4] - The Zacks Consensus Estimate for JHX's full-year earnings has increased by 11.4% over the past three months, indicating a stronger analyst sentiment and improving earnings outlook [3] Industry Comparison - James Hardie belongs to the Building Products - Miscellaneous industry, which includes 34 stocks and currently ranks 171 in the Zacks Industry Rank, with an average gain of 12% this year, showing that JHX is performing better than its industry [5] - In contrast, MasTec (MTZ), another outperforming stock in the Construction sector, is part of the Building Products - Heavy Construction industry, which has seen a 24.1% increase since the start of the year and ranks 87 [6]

Core Insights - James Hardie (JHX) reported a revenue of $1.24 billion for the quarter ended December 2025, marking a year-over-year increase of 30.1% and exceeding the Zacks Consensus Estimate by 2.7% [1] - The earnings per share (EPS) for the same period was $0.24, down from $0.36 a year ago, but it surpassed the consensus EPS estimate of $0.23 by 6.67% [1] Revenue Breakdown - Siding & Trim revenues reached $788.3 million, exceeding the average estimate of $772.8 million from four analysts [4] - Deck, Rail & Accessories generated $194.1 million, compared to the estimated $189.11 million from four analysts [4] - Australia & New Zealand revenues were $126.5 million, surpassing the average estimate of $124.27 million from three analysts [4] - Europe revenues totaled $130.9 million, exceeding the two-analyst average estimate of $120.96 million [4] EBITDA Performance - Adjusted EBITDA for Deck, Rail & Accessories was $48.7 million, compared to the average estimate of $47.84 million from four analysts [4] - Adjusted EBITDA for Siding & Trim reached $268.6 million, exceeding the average estimate of $253.85 million from four analysts [4] - EBITDA for Europe was reported at $16.6 million, surpassing the three-analyst average estimate of $14.01 million [4] - Adjusted EBITDA for Australia & New Zealand was $41.2 million, slightly below the three-analyst average estimate of $41.9 million [4] Stock Performance - Shares of James Hardie have returned +0.7% over the past month, while the Zacks S&P 500 composite remained unchanged [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential outperformance against the broader market in the near term [3]

Financial Data and Key Metrics Changes - Total net sales grew 30% to $1.24 billion, including $275 million from acquired AZEK sales, with organic sales increasing by 1% [19] - Adjusted EBITDA was $330 million, with a 26.6% adjusted EBITDA margin [19] - Adjusted net income was $142 million, and adjusted diluted earnings per share was $0.24 [20] - Year-to-date free cash flow was $261 million, negatively impacted by one-time integration costs [20][21] Business Line Data and Key Metrics Changes - Siding and trim segment net sales increased by 10%, including $81 million from the AZEK acquisition, but organic net sales were down 2% due to lower volumes [21] - Adjusted EBITDA for siding and trim was $269 million, with a margin of 34.1%, down 70 basis points year-over-year due to reallocating R&D costs [22] - Deck, Rail, and Accessories net sales were up 2%, with adjusted EBITDA of $49 million and a margin of 25.1% [23] Market Data and Key Metrics Changes - In Australia and New Zealand, net sales were up 7% in both U.S. and Australian dollars, driven by a 1% growth in volume and a 6% rise in average selling price [24] - In Europe, net sales increased by 13%, with an EBITDA margin of 12.7%, up 240 basis points due to volume leverage and lower costs [24] Company Strategy and Development Direction - The company aims to re-accelerate organic growth in fiber cement and expand margins through disciplined execution and innovation [3] - Focus on increasing penetration in the $10 billion repair and remodel market, particularly in the Northeast and Midwest regions [7][29] - The combination with AZEK is expected to drive significant revenue synergies and enhance competitive positioning [8][16] Management's Comments on Operating Environment and Future Outlook - Current market conditions are mixed, with new construction demand remaining uncertain but stable trends observed in repair and remodel [6][38] - Management expects to return to organic revenue growth and adjusted EBITDA margin expansion in FY 2027, contingent on market conditions [28][29] - Confidence in achieving $125 million in annualized commercial synergy run rate by the end of FY 2027 [18][30] Other Important Information - The company has implemented manufacturing optimization actions to align its cost structure with long-term growth objectives, expecting annual cost savings of $25 million starting in FY 2027 [5][22] - The company is focused on product innovation and improving installation techniques to enhance contractor efficiency [9][66] Q&A Session Summary Question: Update on regional variation in siding sales and near-term expectations - Management noted that new construction activity is challenging across most regions, with Texas and the Southeast showing the greatest softness, but some normalization is expected [35][36] Question: Potential inflation in siding inputs - Management expects modest inflation in fiber cement inputs, primarily affecting the latter half of FY 2027 [41] Question: Acceptance of recent price increases by customers - Price increases have been effective since January, with positive feedback from customers regarding value [46][47] Question: Guidance for siding and trim volumes in Q4 - Management indicated that volumes are expected to be down in a similar range as Q3, with increased marketing expenses impacting margins [50][52] Question: Plans for supplying the West after plant closures - Management expressed confidence in the ability to supply the West from other plants, despite the closure of less efficient facilities [72][73] Question: Opportunities for increasing penetration in retail and big box channels - Management acknowledged ongoing efforts to expand retail presence and improve relationships with big box retailers, emphasizing a gradual approach [80][81]

Financial Data and Key Metrics Changes - Total net sales grew 30% to $1.24 billion, including $275 million from acquired AZEK sales, with organic sales increasing by 1% [19] - Adjusted EBITDA was $330 million, with a 26.6% adjusted EBITDA margin [19] - Adjusted net income was $142 million, and adjusted diluted earnings per share was $0.24 [20] - Year-to-date free cash flow was $261 million, negatively impacted by one-time integration costs [20][21] Business Line Data and Key Metrics Changes - Siding and Trim segment net sales increased by 10%, including $81 million from the AZEK acquisition, but organic net sales declined by 2% due to lower volumes [21] - Adjusted EBITDA for Siding and Trim was $269 million, with a margin of 34.1%, reflecting a nearly 500 basis point sequential improvement [22] - Deck, Rail, and Accessories segment net sales were up 2%, with adjusted EBITDA of $49 million and a margin of 25.1% [23] Market Data and Key Metrics Changes - In North America, organic net sales in the legacy fiber cement business declined by 2%, with single-family exteriors volumes down high single digits [4] - Australia and New Zealand net sales were up 7% in both U.S. and Australian dollars, driven by a 1% growth in volume and a 6% rise in average selling price [24] - European net sales increased by 13% or 3% in euros, with EBITDA margin up 240 basis points to 12.7% [24] Company Strategy and Development Direction - The company aims to re-accelerate organic growth in fiber cement and expand margins through disciplined execution and innovation [3] - Focus on increasing penetration in the $10 billion repair and remodel market, particularly in the Northeast and Midwest regions [7] - The combination with AZEK is expected to drive significant commercial synergies and enhance competitive positioning [8][16] Management's Comments on Operating Environment and Future Outlook - Current market conditions are mixed, with new construction demand remaining uncertain but stable trends observed in repair and remodel [6][38] - Management expects to return to organic revenue growth and adjusted EBITDA margin expansion in FY 2027, driven by strategic initiatives [28][30] - Confidence in achieving $125 million in annualized commercial synergy run rate exiting FY 2027 [18][30] Other Important Information - The company has implemented manufacturing optimization actions to align cost structure with long-term growth objectives, expecting annual cost savings of $25 million starting in FY 2027 [5][22] - The company is focused on product innovation, including new installation techniques to enhance contractor efficiency [9][66] Q&A Session Summary Question: Update on regional variation in siding sales and near-term expectations - Management noted that new construction activity is challenging across most regions, with Texas and the Southeast showing the greatest softness, but some normalization is expected [35][36] Question: Potential inflation in siding inputs - Management expects modest inflation on fiber cement inputs, primarily in the back half of 2027 [41] Question: Acceptance of recent price increases by customers - Price increases executed in January have been accepted well by customers, contributing positively to price and mix [46][47] Question: Guidance for siding and trim volumes in Q4 - Management indicated that volumes are expected to be down in a similar range as Q3, with increased marketing activity impacting margins [50][52] Question: Plans for supplying the West after plant closures - Management expressed confidence in the ability to supply the entire network, including California, from other plants [72][73]

Financial Data and Key Metrics Changes - Total net sales grew 30% to $1.24 billion, including $275 million from acquired AZEK sales. Organic sales increased by 1% [18] - Adjusted EBITDA was $330 million, with a 26.6% adjusted EBITDA margin [18] - Adjusted net income was $142 million, and adjusted diluted earnings per share was $0.24 [19] - Year-to-date free cash flow was $261 million, negatively impacted by one-time integration costs [19] Business Line Data and Key Metrics Changes - Siding and Trim segment net sales were up 10%, including $81 million from AZEK acquisition, but organic net sales were down 2% due to lower volumes [20] - Adjusted EBITDA for Siding and Trim was $269 million, with a 34.1% adjusted EBITDA margin, reflecting a nearly 500 basis point sequential improvement [20] - Deck Rail and Accessories segment net sales were up 2%, with adjusted EBITDA of $49 million and a 25.1% adjusted EBITDA margin [22] Market Data and Key Metrics Changes - In North America, organic net sales in the legacy fiber cement business declined 2%, with single-family exteriors volumes down high single digits [3] - Australia and New Zealand net sales were up 7% due to 1% growth in volume and a 6% rise in average selling price [23] - European net sales increased by 13%, driven by strong fiber gypsum volume [23] Company Strategy and Development Direction - The company aims to re-accelerate organic growth in fiber cement and expand margins through disciplined execution and innovation [2] - Focus on increasing penetration in the $10 billion repair and remodel market, particularly in the Northeast and Midwest regions [5] - The combination with AZEK is expected to drive significant revenue synergies and enhance competitive positioning [6][15] Management's Comments on Operating Environment and Future Outlook - Current market conditions are mixed, with new construction demand remaining uncertain but stable trends observed in repair and remodel [4][36] - Management expects to return to organic revenue growth and adjusted EBITDA margin expansion in FY 2027 [27] - Confidence in achieving $125 million in annualized commercial synergy run rate exiting FY 2027 [17][28] Other Important Information - The company has implemented manufacturing optimization actions, including the closure of two older plants, expected to generate annual cost savings of $25 million starting in FY 2027 [4][20] - The company is focused on product innovation, including new installation techniques that could increase contractor efficiency by approximately 30% [8][10] Q&A Session Summary Question: Update on regional variation in siding sales and near-term expectations - Management noted that new construction activity is challenging across most regions, with Texas and the Southeast showing the greatest softness. However, there are signs of normalization early in the calendar year [34][36] Question: Expectations for inflation in siding inputs - Modest inflation is expected on the fiber cement side, primarily in the back half of 2027 [41] Question: Acceptance of recent price increases by customers - Price increases executed on January 1 have been accepted well by customers, contributing positively to price and mix [47] Question: Impact of commercial synergies on FY 2026 - Many sales synergies will start to hit the P&L in FY 2027, with confidence in achieving the $125 million target of revenue synergies by the end of FY 2027 [48] Question: Guidance for siding and trim volumes in Q4 - Volumes are expected to be down in a similar range as Q3, with increased marketing expenses impacting margins [50][51] Question: Supply plans following plant closures - Management expressed confidence in the ability to supply the entire network, including California, from other plants [73][74]

Third Quarter FY26 Earnings Presentation Tuesday, February 10th 1 Q3 FY26 EARNINGS PRESENTATION Q3 FY26 EARNINGS PRESENTATION Q3 FY26 EARNINGS PRESENTATION Cautionary Note and Use of Non-GAAP Measures This Earnings Presentation contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. James Hardie Industries plc (the "Company") may from time to time make forward-looking statements in its periodic reports filed with or furnished to the Securities and Exch ...