The strong Q2 beat and reaffirmed full-year guidance with a raised FCF target signal continued operational momentum from the AZEK acquisition. Watch Q3 guidance for seasonally lower DRA revenue and the Europe divestiture closing timeline for further deleveraging catalysts.
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Executive Summary
James Hardie reported Q2 FY27 results with net sales from continuing operations of $1.428B, up 24% YoY and at the high end of guidance. Adjusted EBITDA of $454.7M was above the guidance range with margins expanding 450 bps to 31.8%. The company reaffirmed full-year FY27 net sales and Adjusted EBITDA guidance and raised its free cash flow target to more than $650M.
Key Financial Metrics
Key Facts
- Net sales from continuing operations of $1.428B, up 24% YoY, at the high end of guidance
- Adjusted EBITDA of $454.7M, up 44% YoY, above the high end of guidance
- Adjusted EBITDA margin expanded 450 bps to 31.8%
- Siding Trim net sales of $880.3M, above the high end of guidance, up 15% YoY
- DRA net sales up 51% YoY to $387.0M
- ANZ net sales up 21% YoY to $160.9M
- Full-year FY27 net sales and Adjusted EBITDA guidance reaffirmed
- Free cash flow target raised to more than $650M from $500M+
- First-half free cash flow of $535.4M vs $58.4M prior year
- $111M of term loan debt repaid in the quarter
- Europe operations classified as discontinued operations; divestiture expected to close in first half of calendar 2027
Financial Impact
Q2 FY27 net sales $1.428B, up 24% YoY; Adjusted EBITDA $454.7M, up 44% YoY; Adjusted EBITDA margin 31.8%, up 450 bps; FCF target raised to >$650M
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Siding Trim | $880.3M | +15.0% |
| Deck, Rail Accessories | $387.0M | +51.0% |
| Australia New Zealand | $160.9M | +21.0% |
Risk Factors
- U.S. housing market remains challenging, particularly new construction; company's plan does not depend on a near-term recovery
- Q3 guidance implies sequential decline in DRA revenue due to seasonality
- Incremental freight costs and weaker macro environment expected in second half
- Europe divestiture not yet closed; expected in first half of calendar 2027
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-071067 |
| Document: jhx-20261105.htm | 0001628280-26-071067 |
| Document: 0001628280-26-071067-index-headers.html | 0001628280-26-071067 |
| Document: 0001628280-26-071067-index.html | 0001628280-26-071067 |
| Document: 0001628280-26-071067.txt | 0001628280-26-071067 |
| 8-K Data (Synthetic) | 0001628280-26-071067 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Nov 6, 2026 today | Press Release | $29.17 | awaiting T+20 | awaiting T+20 | $27.85 (−4.53%) |
Nov 5, 2026 1d ago | 8-K | $29.47 | awaiting T+20 | awaiting T+20 | $27.85 (−5.50%) |
Oct 30, 2026 7d ago | SC 13G/A | $27.24 | awaiting T+20 | awaiting T+20 | $27.85 (+2.24%) |
Oct 1, 2026 5w ago | 8-K | $24.99 $27.24 | ▲ +9.00% | ▲ +10.81% | $27.85 (+11.44%) |
Aug 27, 2026 10w ago | Insider Cluster | $29.77 $26.10 | ▼ −12.33% | ▼ −11.82% | $27.85 (−6.45%) |
Aug 10, 2026 12w ago | DEFA14A | $31.08 $28.91 | ▼ −6.98% | ▼ −5.92% | $27.85 (−10.39%) |
US Market Status
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