## James Hardie Posts Strong Q3 Results Fueled by Integrated Growth and Strategic Synergies
**CHICAGO – February 10, 2026** – James Hardie Industries plc (NYSE / ASX: JHX), a global leader in premium exterior home and outdoor living solutions, today reported robust financial results for its third quarter ending December 31, 2025. The company delivered impressive net sales of $1.2 billion, a significant 30% increase year-over-year, with organic net sales showing a modest 1% growth. This performance underscores the successful integration of its recent AZEK acquisition and the company’s strategic execution in a dynamic market.
The company’s operating income reached $176 million, while Adjusted EBITDA soared to $330 million, demonstrating improved operational efficiency and cost management. Key segments contributed to this success: Siding & Trim net sales rose 10%, with a sequential improvement in Adjusted EBITDA margin by approximately 500 basis points, signaling effective pricing strategies and cost savings initiatives. The Deck, Rail & Accessories (DR&A) segment also showed resilience, with net sales up 2% and mid-single-digit sell-through growth, highlighting successful channel expansion and new product adoption.
“We’re pleased to report that we met or exceeded our financial commitments in the third quarter, even amidst a mixed macroeconomic environment,” stated Aaron Erter, CEO of James Hardie. “We are proactively optimizing our manufacturing footprint and aligning our cost structure with current demand levels. These measures are designed to enhance near-term profitability and strategically position us for sustained growth as market conditions improve.”
Erter highlighted the positive customer reception to the combined James Hardie and AZEK portfolio, driven by differentiated products, strong brands, and a focus on innovation. “Our integration efforts are progressing ahead of schedule, and we’ve already surpassed our fiscal year 2026 cost synergy goal, reinforcing our confidence in achieving the $125 million target. The early traction with dealers, contractors, and homebuilders is a strong indicator of the substantial revenue synergies we anticipate in fiscal year 2027 and beyond, further accelerating material conversion across both exteriors and outdoor living spaces.”
**Segment Performance and Strategic Outlook**
The **Siding & Trim** segment saw net sales increase by 10%, largely attributed to the inorganic contribution from AZEK Exteriors. Organic net sales experienced a 2% decline, primarily due to softer market demand impacting volumes, although this was partially offset by favorable price and mix. The company is focusing on four core strategies to reignite organic growth: enhancing its repair and remodel focus, deepening penetration in new construction by engaging with custom and local builders, driving product innovation with differentiated offerings, and improving installation efficiency through partnerships with contractors.
The **Deck, Rail & Accessories (DR&A)** segment reported a 2% increase in net sales, primarily driven by pricing and product mix. Sell-through growth in the mid-single digits reflects the market’s positive response to the TimberTech brand and its enhanced value proposition. Strategic initiatives in this segment include continued channel expansion, the launch of new products combining aesthetics with functionality, and leveraging the expanded James Hardie portfolio to secure greater shelf space with retail partners. The company is also focused on margin improvement through recycling initiatives, manufacturing efficiencies, and the application of the Hardie Operating System.
In the **Australia & New Zealand (ANZ)** region, net sales grew 7% year-over-year, supported by solid volume growth and increased average selling prices. The EBITDA margin remained strong at 32.6%. The company’s strategy in ANZ centers on customer acquisition and project conversion, bolstered by its strong brand reputation and a focus on new construction markets. Manufacturing efficiencies and Hardie Operating System savings remain key priorities for sustaining profitability.
The **Europe** segment experienced a notable 13% increase in net sales, with Euro-denominated sales up 3%. This growth was driven by volume expansion and a strategic shift towards higher-value products, despite a challenging market environment, particularly in Germany. EBITDA margin saw significant improvement, reaching 12.7%, attributed to favorable plant performance and reduced raw material costs. The company continues to invest in sales and marketing to drive growth for its premium offerings, while focusing on operational leverage and cost optimization.
**Fiscal Year 2026 Guidance**
James Hardie has raised its full-year guidance for the Siding & Trim segment, reflecting stronger-than-expected third-quarter performance and normalized channel inventories. The company anticipates continued mixed conditions in the broader exteriors market but expects mid-single-digit sell-through growth in DR&A to persist. The updated fiscal year 2026 guidance includes:
* **Siding & Trim Net Sales:** $2.953 billion to $2.998 billion (previously $2.925 billion to $2.995 billion)
* **Deck, Rail & Accessories Net Sales:** $787 million to $800 million (previously $780 million to $800 million)
* **Siding & Trim Adjusted EBITDA:** $939 million to $962 million (previously $920 million to $955 million)
* **Deck, Rail & Accessories Adjusted EBITDA:** $219 million to $224 million (previously $215 million to $225 million)
* **Total Adjusted EBITDA:** $1.232 billion to $1.263 billion (previously $1.20 billion to $1.25 billion)
* **Free Cash Flow:** At least $200 million (unchanged)
This guidance incorporates a partial-year contribution from the AZEK acquisition, which closed on July 1, 2025.
**Financial Highlights and Capital Allocation**
Operating cash flow for the nine months ending FY26 was $455 million. Capital expenditures totaled $303 million, with the company projecting approximately $400 million for the full fiscal year 2026. These investments are strategically allocated towards expanding capacity, new product development, and maintaining existing facilities.
The company’s balance sheet remains robust, with total assets of $13.8 billion as of December 31, 2025. Net debt stood at $4.3 billion, reflecting the significant investments made during the acquisition period.
**About James Hardie Industries plc**
James Hardie Industries plc is the global leader in fiber cement siding and a significant player in composite decking and related accessories. The company offers a comprehensive portfolio of premium, durable, and sustainable exterior solutions, including trusted brands such as Hardie®, TimberTech®, AZEK® Exteriors, Versatex®, fermacell®, and StruXure®. With a presence in North America, Europe, and Australia/New Zealand, James Hardie is committed to innovation and sustainable building practices.
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