Why Is James Hardie Stock Surging Tuesday

Core Insights - James Hardie Industries plc reported strong preliminary second-quarter FY26 results, projecting net sales between $1.29 billion and $1.30 billion, exceeding consensus estimates of $1.19 billion [1] - The company anticipates adjusted EPS of 26 to 27 cents, significantly higher than the consensus of 16 cents [1] - Adjusted EBITDA is expected to be in the range of $326 million to $331 million, with adjusted net income projected at $151 million to $157 million [1] - As of September 30, the company's net debt was reported at $4.5 billion [1] Sales Performance - CEO Aaron Erter noted that Siding & Trim sales exceeded expectations, with only a slight year-over-year decline in organic net sales due to lower-than-anticipated inventory reductions by distributors and dealers [2] - Despite challenges in the single-family housing market, customer demand and product availability demonstrate the brand's strength and partnerships [2] Strategic Developments - The integration and synergy plans for the AZEK acquisition are progressing well, with mid-single-digit sales and sell-through growth for Deck, Rail & Accessories in the second quarter [3] - The acquisition of The AZEK Company was valued at $8.75 billion, indicating a significant strategic move for the company [3] - James Hardie is scheduled to release its detailed second-quarter results on November 18, 2025 [3] Market Reaction - Following the positive preliminary results, JHX shares increased by 14.43%, reaching $23.00 in premarket trading [4]