James Hardie shares lift on Q2 result, improved guidance, leadership refresh
Make us a preferred source
Make us a preferred source on Google
More news: James Hardie was the biggest gainer on the ASX 200 in morning trade after the building materials supplier announced its second quarter results as well as new chair and chief financial officer appointments.
At 11:37am AEDT shares in James Hardie had lifted 6.3% to $27.03.
Net sales in the second quarter of FY26 lifted 34% year on year to USD1.29 billion ($1.99 billion) and adjusted EBITDA lifted lifted 25% to USD329.5 million.
However, the company swung to a net loss of USD55.8 million compared to the USD83.4 million profit in the previous corresponding period and a year-on-year operating income decline of 84% to USD24 million.
James Hardie also lifted several guidance ranges for FY26. This includes total adjusted EBITDA, which has increased to between USD1.2 billion and USD1.25 billion from a previous guidance range of USD1.05 billion and USD1.15 billion.
RBC Capital Markets analyst Matthew McKellar said the Q2 result was roughly in line with its preliminary result released in early October and consensus expectations.
What they said: “We think the company's positive messaging on cost synergy realization, early wins with customers, opportunities for cost reductions (reducing variable costs in plants, optimizing its manufacturing network to improve utilization, etc.), and improved financial forecasting as part of providing guidance to the market will be received well by investors,” McKellar said.
“We think Mr. Lada's appointment as CFO may also be viewed positively and believe he was well-regarded during his time at AZEK (although his stint at CFO was relatively brief).”
James Hardie appoints Ryan Lada as CFO, Rachel Wilson steps down
The news: James Hardie chief financial officer Rachel Wilson has stepped down after two years in the role and will be replaced by Watts Water Technologies CFO Ryan Lada.
The building materials provider also appointed Nigel Stein as its new chair, filling the vacancy left by Anne Lloyd who was voted off the board during the company’s annual general meeting.
The context: Prior to serving as Watts Water Technologies’ CFO, Lada was previously AZEK’s CFO. Lada’s departure from AZEK was announced prior to the outdoor living company’s acquisition by James Hardie.
Wilson will stay on with the company in an advisory role until 31 March 2026 to facilitate a smooth transition.
Stein is an existing board director at James Hardie and sits on the nominating and governance committee.
What they said: “Ryan brings deep industry knowledge, financial expertise and a proven track record of delivering impressive results, and we could not be more pleased to welcome him to the James Hardie team,” James Hardie CEO Aaron Erter said.
Erter also said “Rachel has worked tirelessly for James Hardie, and I have valued her partnership over the last two years. We are grateful she will be supporting Ryan through the transition”.
