James Hardie Industries (JHX) Q4 2026 earnings summary

Executive summary

• Q4 FY26 net sales reached $1.4 billion, up 45% year-over-year, driven by the AZEK acquisition, while organic net sales declined 1%.

• Full-year FY26 net sales were $4.84 billion, up 25% year-over-year, with organic net sales down 2%.

• Adjusted EBITDA for Q4 FY26 was $381 million (27.1% margin), with full-year Adjusted EBITDA at $1.27 billion (26.2% margin).

• Integration of AZEK progressing well, with cost synergies ahead of schedule and commercial synergies on track; $37 million in cost synergies delivered in FY26, targeting $125 million in three years.

• Challenging market conditions included weather disruptions, declining construction activity, and economic uncertainty, but strong execution on cost control, pricing, and customer service drove margin improvements.

Financial highlights

• Q4 FY26 net sales grew 45% to $1.4 billion, including $445 million from AZEK; organic net sales declined 1%.

• Full-year FY26 net sales up 25% to $4.84 billion; organic net sales down 2%.

• Q4 FY26 adjusted EBITDA $381 million (27.1% margin); full-year adjusted EBITDA $1.27 billion (26.2% margin).

• Free cash flow for FY26 was $314 million, with FY27 expected to exceed $500 million.

• Q4 FY26 adjusted net income $172.6 million (+11%); adjusted diluted EPS $0.30 (-19%).

Outlook and guidance

• FY27 net sales guidance: $5.25–$5.41 billion; Siding & Trim: $3.04–$3.13 billion; Deck, Rail & Accessories: $1.11–$1.15 billion.

• FY27 adjusted EBITDA guidance: $1.45–$1.5 billion (4.1–7.7% pro forma growth).

• FY27 free cash flow expected to exceed $500 million, up over $200 million year-over-year.

• Q1 FY27 net sales guidance: $1.32–$1.35 billion; adjusted EBITDA $354–$375 million.

• Market expected to decline ~3% in 2027; guidance assumes no improvement in macro conditions.