James Hardie falls on disappointing fiscal 2027 outlook

James Hardie Industries PLC reported mixed results on Thursday, with adjusted earnings per share exceeding expectations but disappointing revenue guidance. The company's adjusted earnings per share came in at $0.42, surpassing the analyst consensus of $0.39. Revenue from continuing operations reached $1.428 billion, a 24% increase year-over-year, beating the consensus estimate of $1.47 billion.

However, James Hardie's outlook for the third quarter and fiscal year 2027 fell short of Wall Street expectations. The company initially guided third-quarter revenue between $1.058 billion and $1.14 billion, which is below the consensus estimate of $1.17 billion. For fiscal year 2027, the company forecast revenue between $4.99 billion and $5.133 billion, significantly lower than the $5.413 billion analyst estimate.

CEO Aaron Erter highlighted the strong second quarter performance, with sales up 24% and adjusted EBITDA above expectations. The company also repaid $111 million of term loan debt and raised its free cash flow target to over $650 million for fiscal 2027.