• Q1 FY26 net sales of $900 million with average net sales price growth across all regions
• Operating income of $139 million, adjusted EBITDA of $226 million
• AZEK June quarter results exceeded guidance with +MSD% deck, rail & accessories sell-through growth

James Hardie Industries plc reported results for its first quarter ending June 30, 2025. Net sales were $899.9 million, down 9% from the prior year quarter, primarily due to lower volumes driven by soft market demand and inventory management by customers. Operating income was $138.6 million, down 41%, and adjusted EBITDA was $225.5 million, down 21%. The company's North America Fiber Cement segment saw a 12% decline in net sales and a 29% decline in operating income, while the Asia Pacific Fiber Cement segment saw a 10% decline in net sales and an 8% decline in operating income. The Europe Building Products segment saw a 7% increase in net sales and a 24% increase in operating income. The company announced updates to its reporting segments following the closing of the AZEK acquisition on July 1, 2025. For FY26, the company issued guidance of $2.675 to $2.850 billion in net sales for Siding & Trim, $775 to $800 million in net sales for Deck, Rail & Accessories, and total adjusted EBITDA of $1.05 to $1.15 billion. The company also provided an update on its capital allocation, including $400 million in estimated capital expenditures for FY26 and the successful syndication of new credit facilities to fund the AZEK acquisition.

For FY26, the company issued guidance of $2.675 to $2.850 billion in net sales for Siding & Trim, $775 to $800 million in net sales for Deck, Rail & Accessories, and total adjusted EBITDA of $1.05 to $1.15 billion.

The company stated that presently, demand in both repair & remodel and new construction in North America is challenging, with uncertainty being a common thread throughout conversations with customers and contractors. The company has adjusted its expectations to account for softer demand, but remains committed to delivering a superior value proposition to customers and a leading margin profile to support its capital allocation priorities despite near-term market headwinds.