• Closing manufacturing facilities in Fontana, California and Summerville, South Carolina
• Transferring production to other modern, advanced plants
• Expecting $25 million in annualized cost savings starting Q1 FY2027

James Hardie Industries plc, a leading provider of exterior home and outdoor living solutions, announced that it is taking steps to optimize its manufacturing footprint as part of the company's ongoing commitment to operational excellence through the Hardie Operating System (HOS). The company's manufacturing facilities in Fontana, California and Summerville, South Carolina will close within the next 60 days, with the sites' manufacturing operations, representing approximately 6% of the company's year-to-date North American volume, being absorbed by other facilities. The Fontana site's Innovation and Research & Development functions will remain in operation. According to CEO Aaron Erter, these actions will further improve the company's cost structure, increase productivity, and reinforce the Hardie Operating System, while ensuring the capacity needed to support growth initiatives. The company expects the site closures and optimization initiatives to generate annualized cost savings of approximately $25 million beginning in the first quarter of fiscal year 2027, driven by reduced fixed costs and improved utilization across the remaining manufacturing network. These cost savings are incremental to any cost synergy savings related to the recent AZEK acquisition. The company expects to incur one-time pre-tax charges of approximately $40 million to $44 million, primarily consisting of employee severance, benefits and transition-related costs, contract termination, and facility exit costs, as well as asset impairments and other non-cash charges. These charges are expected to be recognized primarily in the fourth quarter of fiscal year 2026, split approximately evenly between cash and non-cash items.

The company's focus remains on driving sustainable growth and value creation over the long term.