The company posted adjusted earnings $0.29 per share, compared with the average analysts’ estimate of $0.35 per share for the fiscal first quarter, according to FinChat data.
James Hardie (JHX) stock slipped 26.8% in extended trading on Tuesday, tracking declines in Australia-listed shares.
The company posted adjusted earnings $0.29 per share, compared with the average analysts’ estimate of $0.35 per share for the fiscal first quarter, as per Fiscal.ai data. Its net sales slumped 9% to about $900 million, compared to year-ago levels, also missing the consensus of $962 million.
Net sales at the North America fiber cement business segment, the company’s largest, fell 12% primarily due to lower volumes driven by soft market demand and inventory management by its customers, partially offset by an increase in average net sales price.
James Hardie noted that the pace of new construction has slowed in key high-growth markets such as Texas, Florida, and Georgia. “Housing markets in these geographies have been especially impacted in the near term by affordability challenges and elevated housing inventory,” the company said.
Retail sentiment on Stocktwits about James Hardie was in the ‘extremely bullish’ territory, while retail chatter was ‘extremely high.’
Asia Pacific fiber cement sales also slipped 10% primarily due to the closure of a manufacturing facility in the Philippines, even as demand increased modestly in Australia and New Zealand. The Europe building products segment sales rose 7% aided by an improvement in UK demand.
James Hardie will likely continue to see pain due to a slump in housing demand in the U.S., due to elevated interest rates, and weak consumer sentiment. According to a report by the National Association of Home Builders, about 66% housing firms used sales incentives in August to lure customers, the highest percentage in the post-COVID period.
The firm already took a bold bet on the U.S. housing market this year by acquiring U.S. building materials supplier AZEK Industries for $8.8 billion.
“Uncertainty is a common thread throughout conversations with customer and contractor partners,” CEO Aaron Erter said.
Most retail traders on Stocktwits said that the selloff was overblown. One user commented that this was the right time to buy housing stocks ahead of a possible revival of the housing market in 2026.
James Hardie stock has fallen 8.5% this year.
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