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James Hardie, a fiber cement manufacturer, sees profits below expectations due to weak US demand

James Hardie, a fiber cement manufacturer, sees profits below expectations due to weak US demand

James Hardie, a fiber cement manufacturer, forecast underlying earnings for the full year below expectations on Wednesday as rising borrowing costs and tariffs in the U.S. dampened housing market activity and demand.

James Hardie predicted adjusted operating earnings of between $1.05 and $1.15 for fiscal year 2026. This is below Visible Alpha's consensus estimate of $1.23. It earned $1.1billion in fiscal 2025.

In a press release, CEO Aaron Erter stated that "over the course of the summer the single-family construction activity was weaker than expected and we have adjusted expectations to account for the softer demand."

Homeowners defer large-ticket remodeling jobs like re-siding and affordability is the main impediment in improving single-family new construction.

Sales in North America, which account for almost 75% of the company's topline, fell 12%, to $641.80 million, in the quarter ending June 30.

The firm, headquartered in Dublin, saw its adjusted net income fall to $126.9 millions from $177.6 last year. This was below the Visible Alpha forecast of $158.5. (Reporting and editing by Maju Samuel in Bengaluru, Sneha Kumar and Shivangi Lahiri in Bengaluru)

(source: Reuters)