James Hardie's ASX-listed shares near one-year high after earnings forecast upgrade

James Hardie's shares on the ASX reached a near one-year high on August 7 after the company upgraded its earnings forecast. The boost came from synergies arising from the 2025 acquisition of U.S.-based decking and exteriors firm AZEK, alongside manufacturing efficiency gains and strong demand for its fiber cement products. The Dublin-based firm reported a 54% rise in first-quarter adjusted net income to $209.3 million, up from $136.1 million a year earlier.

Siding & Trim, the company's largest profit-generating segment, continued to face challenges amid affordability concerns in the U.S. market. James Hardie now anticipates adjusted earnings before interest, taxes, depreciation and amortization of $1.54 billion to $1.63 billion for 2027, surpassing its prior estimate of $1.45 billion-$1.50 billion.

CFO Ryan Lada highlighted the impact of synergies from the AZEK integration and improved manufacturing costs as key drivers. Analyst Esther Holloway noted that the market had overlooked James Hardie's ability to gain market share during downturns, attributing the positive outlook to the company's strategic advantages. Despite the positive sentiment, Holloway cautioned that early cost-saving targets, while on track, may prove more challenging to achieve moving forward.