James Hardie Industries plc JHX is waiting for the global housing industry to recover. This Zacks Rank #5 (Strong Sell) is controlling what it can even amidst the uncertainty.
James Hardie manufactures exterior home and outdoor living solutions, including fiber cement, fiber gypsum building products, and composite and PVC decking and railing products.
It recently closed on its acquisition of AZEK, so it acquired AZEK Exteriors and its brands also include Hardie, TimberTech, Versatex, fermacell and StruXure.
James Hardie is a global company. It’s headquartered in Ireland. The company’s products are sold throughout North America, Europe, Australia, and New Zealand.
James Hardie Beat on Earnings Again in Q4 FY2026
On May 19, 2026, James Hardie reported its fourth quarter fiscal 2026 earnings and beat on the Zacks Consensus by $0.01. Earnings were $0.30 versus the Zacks Consensus of $0.29.
It was the third consecutive quarter where the company beat on the Zacks Consensus by just $0.01.
Market conditions remained challenging, with subdued building activity and ongoing affordability pressures in the quarter. Siding & Trim experienced weather-related volume headwinds in February and March.
James Hardie considered FY2026 to be a “transformational” year for the company as it acquired AZEK and is already seeing cost and commercial synergies.
James Hardie is Bullish Going into FY2027
Despite the ongoing challenges in the housing industry, James Hardie is looking forward.
“Inflationary and affordability pressures continue to weigh on housing activity. We are focused on what we can control: our cost base, pricing discipline, and providing exceptional products and service to our customers,” said Aaron Erter, CEO.
“We also expect a meaningful step-up in Free Cash Flow to greater than $500 million in FY27,” he added.
Analysts Cut James Hardie’s FY2027 Earnings Estimates
James Hardie looks to commentary from large homebuilders, trends in home remodeling, channel inventory across its distribution network and broader consumer sentiment to try and figure it all out and give guidance.
“The operating environment remains uncertain. We are not assuming a market recovery,” said Ryan Lada, CFO.
The analysts have adjusted full year earnings estimates for this year in the last week.
One estimate was revised higher, and two were cut in the last 7 days. This has pushed the Zacks Consensus Estimate down to $1.24 from $1.33.
This is still earnings growth of 13.8% as the company made $1.09 last year.
Here’s what it looks like on the price and consensus chart.
Image Source: Zacks Investment Research
Shares of James Hardie Sink as Mortgage Rates Rise
James Hardie tracks what is going on in the housing industry, including mortgage rates. As rates have risen in 2026, many stocks in the housing industry have fallen.
Shares of James Hardie are down 12.3% in the last three months.
Image Source: Zacks Investment Research
Is this a buying opportunity?
James Hardie is trading with a forward price-to-earnings (P/E) ratio of 16.8. A P/E ratio under 20 is usually considered to be attractively priced but a P/E under 15 is often considered to be a value.
The company doesn’t pay a dividend.
Housing won’t stay down forever. But investors may want to wait on the sidelines until the recovery.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
