James Hardie Industries (JHX) Q3 2026 earnings summary

Executive summary

• Q3 FY26 net sales reached $1.24 billion, up 30% year-over-year, with strong contributions from the AZEK acquisition and organic net sales up 1%.

• Adjusted EBITDA for Q3 FY26 was $330 million, up 26% year-over-year, with a margin of 26.6%.

• Integration with AZEK is progressing well, generating meaningful commercial and cost synergies, with a $125 million synergy target reaffirmed.

• Adjusted diluted EPS was $0.24, down 31% year-over-year, reflecting higher share count and acquisition-related costs.

• Year-to-date free cash flow was $261 million, down 20% year-over-year.

Financial highlights

• Total net sales grew 30% to $1.24 billion, including $275 million from AZEK; organic sales up 1%.

• Adjusted EBITDA was $330 million (26.6% margin); adjusted net income was $142 million; adjusted EPS $0.24.

• Year-to-date free cash flow was $261 million, aided by a land sale; full-year free cash flow expected at least $200 million.

• Net debt at $4.3 billion as of December 31, 2025; pro forma net leverage at ~2.87x, with a target to reduce below 2x within two years.

• Siding & Trim segment net sales were $788 million, down 2% organically, with volumes down 7% but ASP up 5%.

Outlook and guidance

• Raised full-year Siding & Trim net sales guidance to $2.953–$2.998 billion and Adjusted EBITDA to $939–$962 million.

• Deck, Rail & Accessories (DR&A) net sales guidance increased to $787–$800 million, with Adjusted EBITDA of $219–$224 million.

• Total company full-year FY26 Adjusted EBITDA expected at $1.232–$1.263 billion; free cash flow guidance at least $200 million.

• AZEK adjusted EBITDA (Q2–Q4) guided at $267–$275 million.

• FY27 focus on returning to organic revenue growth and margin expansion, with additional details to be provided at year-end.