James Hardie(US:JHX) GlobeNewswire News Room·2025-08-31 10:36Core Viewpoint - James Hardie Industries plc is under investigation for potential violations of federal securities laws, following a significant decline in its stock price due to disappointing financial results and concerns over sales driven by temporary inventory loading rather than sustainable demand [1][4]. Company Overview - James Hardie is a producer and marketer of high-performance fiber cement and fiber gypsum building solutions, primarily used in external siding for the residential building industry in the United States and Canada [2]. Sales Performance - The company previously claimed that its "fast[]-growing customers" were a key aspect of its competitive positioning, asserting that its North American business results demonstrated the strength of its value proposition [3]. - However, it has been revealed that North American sales may have been artificially inflated due to temporary inventory loading by channel partners, rather than genuine customer demand [3]. Financial Results - In its fiscal Q1 2026 report, James Hardie disclosed a 12% decline in North American net sales, attributed to customers returning to normal inventory levels. The company anticipates continued inventory destocking among channel partners will further impact sales in the upcoming quarters [4]. - Following this announcement, James Hardie's stock price plummeted by $9.79 per share, a decrease of over 34%, from $28.43 on August 19, 2025, to $18.64 on August 20, 2025 [4].