James Hardie Shares Surge Over 11% After Boosting Q2 Guidance
Building materials giant cites stronger-than-expected sales and profitability, signaling modest improvement in its key siding market.
Shares of James Hardie Industries (NYSE: JHX) soared more than 11% on Tuesday after the building materials manufacturer released strong preliminary results for its second quarter and significantly raised its guidance, citing robust performance in its Siding & Trim segment.
The company announced it now anticipates net sales between $1.29 billion and $1.30 billion for the quarter ending September 30, comfortably ahead of the Wall Street consensus of $1.19 billion. More impressively, James Hardie projects adjusted earnings per share (EPS) of $0.26 to $0.27, .
In a statement accompanying the release, CEO Aaron Erter pointed to resilience in the company's core market. "Our Siding & Trim sales performance was better than we expected," Erter said. He noted that distributors and dealers reduced inventory less than the company had anticipated, even as the single-family new construction market faces ongoing headwinds. This better-than-expected channel performance suggests underlying demand remains solid.
, the company also expects Adjusted EBITDA to land between $326 million and $331 million. "We are encouraged by our second quarter results and believe the outlook for Siding & Trim has modestly improved," Erter added, signaling growing confidence from management.
Beyond its primary siding business, James Hardie also reported positive developments from its AZEK integration. The company's Deck, Rail & Accessories segment saw mid-single-digit growth in both net sales and sell-through compared to the prior year, with management confirming that its synergy capture initiatives are proceeding as planned.
Investors reacted positively to the news, sending the stock sharply higher on elevated trading volume. The upbeat forecast from a major supplier like James Hardie could be viewed as a cautiously optimistic indicator for the broader housing and remodeling markets. The company stated that a full update to its annual guidance will be provided during its .