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 the quarter was $330 million, up 26% year-over-year, with a margin of 26.6%.

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

• Strategic focus remains on material conversion, innovation, and operational excellence to drive long-term value.

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

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 in Australia; full-year free cash flow expected at least $200 million.

• Net debt ended at $4.3 billion as of December 31, 2025; pro forma net leverage at ~3x, with a target to reduce below 2x within two years.

• Operating income for Q3 FY26 was $176 million, down 15% year-over-year; adjusted net income was $142.2 million, down 7%.

Outlook and guidance

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

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

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

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

• Expect organic revenue growth and margin expansion in FY27, with commercial and cost synergies supporting targets.