James Hardie Reports 9% Sales Decline, 29% Profit Drop on Weak US Demand

James Hardie Industries reported a 9% decline in global net sales to $900 million and a 29% drop in adjusted net income to $126.9 million in the first quarter of fiscal 2026, missing Wall Street expectations amid challenging housing market conditions. The company's North American sales fell 12%, driven by a significant downturn in single-family home construction, particularly in southern states like Florida, Georgia, and Texas. Elevated borrowing costs and tariffs have dampened demand, with homeowners deferring large remodeling projects such as re-siding, contributing to softer demand in both new construction and the repair and remodel market. The recent acquisition of AZEK is expected to more than double James Hardie's addressable market and deliver $500 million in commercial synergies over five years, though benefits will begin primarily in fiscal 2027. Management lowered full-year adjusted EBITDA guidance to between $1.05 billion and $1.15 billion, below analyst estimates, citing ongoing market softness and inventory normalizations. Despite short-term headwinds, James Hardie is positioned for long-term growth through its expanded product portfolio and deeper relationships with large U.S. homebuilders.