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James Hardie raises FY2027 free cash flow target above $650M

JHX raised its fiscal 2027 free-cash-flow target to more than $650 million while reaffirming net sales and Adjusted EBITDA guidance.

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Filing Sentiment

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Form Type
8-K

Rhea-AI Filing Summary

James Hardie Industries plc (JHX) reported second-quarter FY2027 continuing-operations net sales of $1,428.2 million, up 24%, and Adjusted EBITDA of $454.7 million, up 44%. Adjusted EBITDA margin was 31.8%, up 450 basis points; continuing-operations net income was $149.8 million versus a $64.3 million loss a year earlier. Europe is presented as discontinued operations.

For the six months ended September 30, 2026, free cash flow, including discontinued operations, was $535.4 million. James Hardie reaffirmed continuing-operations FY2027 net sales guidance of $4.990 billion to $5.133 billion and Adjusted EBITDA guidance of $1.446 billion to $1.534 billion, while raising its free-cash-flow target to more than $650 million. It repaid $111 million of term-loan debt during the quarter. Prior periods were recast after the company revised certain non-GAAP definitions, including Adjusted EBITDA, to exclude share-based compensation.

Continuing-operations third-quarter guidance is net sales of $1.058 billion to $1.140 billion and Adjusted EBITDA of $298 million to $320 million. Management expects Adjusted EBITDA to be lower in Q3 and the second half, citing DR&A seasonality, incremental freight costs and a weaker macro environment. The Europe divestiture is expected to close in the first half of calendar 2027.

4 points · 1 major

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How the balance worksHow Sentiment works

0 major · 1 point

Hollow bars mark forward-looking points. How the balance works

Positive

  • Major point. Forward-looking: it has not happened yet and may not happen.The fiscal 2027 free-cash-flow target rose to more than $650 million.
  • Moderate pointContinuing-operations net sales reached $1,428.2 million, up 24%.
  • Moderate pointAdjusted EBITDA rose 44% to $454.7 million; margin increased 450 basis points.
  • Moderate pointFirst-half free cash flow was $535.4 million, versus $58.4 million.

Negative

  • Moderate point. Forward-looking: it has not happened yet and may not happen.Q3, second-half Adjusted EBITDA expected lower amid seasonality, freight and weaker macro.

Filing Explained

The release says about $600 million of expected Europe-sale proceeds are intended for debt repayment; the sale remains unclosed, with closing expected in the first half of calendar 2027, and management targets net leverage below 2.0x by the end of FY2028’s second quarter, also relying on continued free cash flow.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Continuing-operations net sales $1,428.2 million Second quarter FY2027; up 24% year over year
Adjusted EBITDA $454.7 million Second quarter FY2027; up 44% year over year
Net income from continuing operations $149.8 million Second quarter FY2027; compared with a $64.3 million loss in the prior-year quarter
Free cash flow $535.4 million Six months ended September 30, 2026; includes discontinued operations
FY2027 net sales guidance $4.990 billion to $5.133 billion Continuing operations; reaffirmed
FY2027 Adjusted EBITDA guidance $1.446 billion to $1.534 billion Continuing operations; reaffirmed
FY2027 Free Cash Flow target More than $650 million Raised target
Expected Europe divestiture proceeds Approximately $600 million Expected to be applied toward debt repayment
Adjusted EBITDA financial
"Adjusted EBITDA Margin is equal to Adjusted EBITDA divided by net sales."
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Free Cash Flow financial
"net cash provided by (used in) operating activities less purchases of property, plant and equipment"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
Net Leverage financial
"gross debt less cash and cash equivalents, divided by trailing twelve month Adjusted EBITDA"
Net leverage measures how many years it would take for a company to pay off its outstanding debt using its annual operating cash flow, after subtracting cash on hand from total debt. Think of it like a household’s mortgage balance minus savings divided by yearly income; a lower number means the company is in a safer position to handle debt, while a higher number signals greater financial risk and potential pressure on profits or growth.
discontinued operations financial
"Europe is therefore presented within discontinued operations"
Discontinued operations are parts of a company that it has decided to sell or shut down, and no longer plans to run in the future. This matters to investors because it helps them understand which parts of the business are ongoing and which are being phased out, providing a clearer picture of the company’s current performance and future prospects. Think of it like a store closing a department—it no longer contributes to sales or profits.
Inventory fair value adjustment financial
"Inventory fair value adjustment"
Continuing-operations net sales $1,428.2 million +24% year over year
Adjusted EBITDA $454.7 million +44% year over year
Adjusted EBITDA margin 31.8% +450 basis points year over year
Net income from continuing operations $149.8 million Compared with a $64.3 million loss in the prior-year quarter
Guidance

Continuing-operations FY2027 net sales guidance of $4.990 billion to $5.133 billion and Adjusted EBITDA guidance of $1.446 billion to $1.534 billion were reaffirmed; the Free Cash Flow target was raised to more than $650 million.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were JHX's second-quarter FY2027 sales and Adjusted EBITDA?
Continuing-operations net sales were $1,428.2 million, up 24% year over year, and Adjusted EBITDA was $454.7 million, up 44%. Adjusted EBITDA margin was 31.8%, up 450 basis points.

What is James Hardie's FY2027 guidance?
James Hardie reaffirmed continuing-operations net sales guidance of $4.990 billion to $5.133 billion and Adjusted EBITDA guidance of $1.446 billion to $1.534 billion. It raised its Free Cash Flow target to more than $650 million.

How much free cash flow did JHX generate in the first half of FY2027?
Free cash flow, including discontinued operations, was $535.4 million for the six months ended September 30, 2026, compared with $58.4 million in the prior-year period.

When is the Europe divestiture expected to close, and how will proceeds be used?
The Europe divestiture is expected to close in the first half of calendar 2027. James Hardie expects to apply approximately $600 million of proceeds toward debt repayment.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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false000115915200011591522026-10-012026-10-01

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________________
FORM 8-K
___________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

Date of Report (date of earliest event reported): November 5, 2026
___________________________________
JAMES HARDIE INDUSTRIES plc
(Exact name of registrant as specified in its charter)
___________________________________

Ireland
(State or other jurisdiction of
incorporation or organization)
1-15240
(Commission File Number)
98-0382260
(I.R.S. Employer Identification Number)
1st Floor, Block A
One Park Place
Upper Hatch Street, Dublin 2
D02 FD79 Ireland
(Address of principal executive offices)
(Zip Code)
Registrant's telephone number, including area code: (353) 1411 6924
___________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol
Name of each exchange on which registered
Ordinary shares, 0.59 Euro par value per share
JHX
New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 12b-2 of the Exchange Act.
Emerging growth company    ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.


Item 2.02 - Results of Operations and Financial Condition.
On November 5, 2026, James Hardie Industries plc (the “Company”) released earnings information for the fiscal quarter ended September 30, 2026, as well as updated fiscal year 2027 guidance. A copy of the press release is furnished as Exhibit 99.1 to this report.
In accordance with General Instructions B.2 of Form 8-K, the information in this Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01 - Financial Statements and Exhibits.
(d) The following exhibits are being filed herewith:
Exhibit No.
Description
99.1
Press Release dated November 5, 2026
104
Cover Page Interactive Data File (embedded within the Inline XBRL document)


SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: November 5, 2026
JAMES HARDIE INDUSTRIES plc
By:
/s/ Ryan Lada
Name:
Ryan Lada
Title:
Chief Financial Officer

Earnings Release
November 5, 2026
logo.jpg
Exhibit 99.1
James Hardie Reports Second Quarter FY27 Results; Delivers Strong Growth and Reaffirms Fiscal 2027 Outlook
Second Quarter Net Sales of $1.564 Billion, including discontinued operations
Second Quarter Highlights (Continuing Operations)
Net Sales of $1.428 Billion, up 24% Year Over Year, at the High End of Guidance
Siding & Trim Net Sales of $880.3 Million, Above the High End of Guidance, Led by Continued Growth in Fiber Cement
Net Income margin of 10.5%; Adjusted EBITDA Margin of 31.8%, Above the High End of Guidance and up 450 Basis Points
Cost Synergies Ahead of Schedule; Revenue Synergies On Track
$111 Million of Term Loan Debt Repaid in the Quarter, Reached FY27 Leverage Target Ahead of Schedule
Consolidated FY27 Net Sales and Adjusted EBITDA Guidance Reaffirmed, Free Cash Flow Target Raised to More than $650 Million
James Hardie Industries plc (NYSE / ASX : JHX) ("James Hardie" or the "Company"), a leading provider of exterior home and outdoor living solutions, today announced results for its second quarter ended September 30, 2026.
In August 2026, the Company announced the strategic divestiture of its European operations and the intended closure of its European fiber cement operations. Europe is therefore presented within discontinued operations, and unless otherwise noted, results and the outlook in this release are on a continuing operations basis, excluding Europe. Beginning in the first quarter FY27, the Company revised the definitions of certain non-GAAP financial measures, including Adjusted EBITDA, to exclude share-based compensation costs.
Aaron Erter, CEO of James Hardie, said, "We delivered a strong second quarter, with sales from continuing operations up 24%, well above the market and at the high end of our guidance range. Adjusted EBITDA was above the guidance range, with margins expanding 450 basis points. North America fiber cement and Deck, Rail & Accessories both delivered double-digit sell-through growth, driven by consistent execution against our sales initiatives, material conversion opportunities and commercial synergies. Australia & New Zealand also delivered strong growth, driven by continued share gains."
Mr. Erter added, "We're focused on what we can control: accelerating material conversion, executing our growth initiatives, and driving continuous improvement through the Hardie Operating System. Our synergy momentum continues to build, with commercial synergies on track to reach our fiscal 2027 target and cost synergies ahead of schedule.
Mr. Erter concluded, "Halfway through the year, we are delivering on the commitments we set for fiscal 2027. While the U.S. housing market remains challenging, particularly new construction, our plan does not depend on a near-term recovery. Based on our broad set of self-help growth levers and our confidence in continuing to outperform the market, we are reaffirming our consolidated fiscal 2027 sales and Adjusted EBITDA outlook and raising our free cash flow target."

Earnings Release: James Hardie - Second Quarter Ended September 30, 2026
1
Earnings Release
November 5, 2026
logo.jpg
Consolidated Financial Information
Q2 FY27Q2 FY26Change6 Months
FY27		6 Months
FY26		Change
Group (US$ millions, except per share data)
Net Sales1,428.2 1,154.7 +24%2,746.4 1,918.1 +43%
Operating Income263.3 12.5 NM462.2 137.9 +235%
Operating Income Margin18.4%1.1%+1,730bps16.8%7.2%+960bps
Net Income (Loss) from Continuing Operations149.8 (64.3)NM240.4 (12.0)NM
Income from Discontinued Operations1.2 8.5 (86%)14.9 18.8 (21%)
Net Income (Loss) from Continuing Operations per common share - Diluted0.26 (0.11)NM0.41 (0.03)NM
Income from Discontinued Operations per common share - Diluted— 0.01 (100%)0.03 0.04 (25%)
Net Income (Loss) Margin from Continuing Operations10.5%(5.6%)NM8.8%(0.6%)NM
Net Income Margin from Discontinued Operations0.1%0.7%(60bps)0.5%1.0%(50bps)
Adjusted Net Income248.5 148.4 +67%443.2 272.6 +63%
Adjusted Diluted Earnings Per Share0.42 0.25 +68%0.76 0.54 +41%
Adjusted EBITDA454.7 314.9 +44%847.4 530.6 +60%
Adjusted EBITDA Margin 31.8%27.3%+450bps30.9%27.7%+320bps
____________
NM - Not meaningful

Earnings Release: James Hardie - Second Quarter Ended September 30, 2026
2
Earnings Release
November 5, 2026
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Segment Business Update and Results
Siding & Trim
Q2 FY27Q2 FY26Change6 Months
FY27		6 Months
FY26		Change
Siding & Trim(US$ millions)
Net Sales880.3 766.0 +15%1,740.1 1,407.8 24%
Operating Income232.0 151.0 +54%446.9 312.2 43%
Operating Income Margin 26.4%19.7%+670bps25.7%22.2%+350bps
Adjusted EBITDA304.4 224.0 +36%592.1 429.8 38%
Adjusted EBITDA Margin 34.6%29.2%+540bps34.0%30.5%+350bps
Siding & Trim net sales increased 15% compared to the quarter ended September 30, 2025, led by continued fiber cement volume growth, favorable price/mix, and traction from our strategic growth initiatives.
Fiber cement volumes increased mid-single digits in the quarter, with multi-family up high-teens. Growth was driven by share gains against vinyl and other materials, strategic initiatives such as ColorPlus®, trim-over and the rollout of Hardie ProLabs, and the resilience of multi-family. Total exterior volumes grew in nearly every region, even as new construction remained soft across many of the Company’s markets. Fiber cement sell-through increased low double digits in the quarter, well ahead of declining end markets.

Second quarter operating income margin was 26.4%, up 670 basis points year-over-year. Adjusted EBITDA Margin, which excludes inventory fair value adjustments, acquisition and divestiture related restructuring expenses, and amortization of acquired AZEK intangibles, was 34.6%, up 540 basis points year-over-year. The increase was primarily driven by favorable net price and mix realization, volume leverage, and lower manufacturing costs, reflecting favorable input costs and continued savings from the Hardie Operating System ("HOS") and footprint optimization. Disciplined SG&A management contributed further. These gains were partially offset by higher freight and diesel costs.



Earnings Release: James Hardie - Second Quarter Ended September 30, 2026
3
Earnings Release
November 5, 2026
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Deck, Rail & Accessories (DR&A)
Q2 FY27Q2 FY26Change6 Months
FY27		6 Months
FY26		Change
Deck, Rail & Accessories(US$ millions)
Net Sales387.0 255.8 +51%692.1 255.8 +171%
Operating Income (Loss)48.6 (11.9)NM45.3 (11.9)NM
Operating Income (Loss) Margin 12.6%(4.7%)NM6.5%(4.7%)NM
Adjusted EBITDA128.7 78.6 +64%211.5 78.6 +169%
Adjusted EBITDA Margin 33.3%30.7%+260bps30.6%30.7%(10bps)
____________
NM - Not meaningful
DR&A net sales increased 51%, or $131.2 million, compared to the quarter ended September 30, 2025, reflecting strong sell-through, the completion of the planned channel inventory normalization in the first quarter and the impact of the initial load-in of our new business with Boise Cascade.
Demand for our products was robust, with low double-digit sell-through well ahead of the market, supported by continued material conversion from wood. Growth was strong at both the entry and premium ends of the range. Retail sell-through was particularly strong, supported by solid consumer demand and incremental shelf space across the combined platform.
Second quarter operating income margin was 12.6%. Adjusted EBITDA Margin was 33.3%, up 260 basis points year-over-year, primarily driven by higher volume and pricing, improved plant performance and operating leverage as production returned to normal levels, and continued savings from cost synergies and HOS. These gains were partially offset by higher input costs, including material inflation and freight costs.
Australia & New Zealand (ANZ)
Q2 FY27Q2 FY26Change6 Months
FY27		6 Months
FY26		Change
Australia & New Zealand(US$ millions, unless otherwise noted)
Net Sales160.9 132.9 +21%314.2 254.5 23%
Net Sales (A$ millions)227.9 203.2 +12%443.9 392.7 13%
Operating Income 49.9 38.0 +31%96.7 75.8 +28%
Operating Income Margin31.0%28.6%+240bps30.8%29.8%+100bps
EBITDA56.8 43.5 +31%110.3 86.5 28%
EBITDA Margin 35.3%32.7%+260bps35.1%34.0%+110bps
Net sales increased 21% for the quarter, or 12% in Australian dollars, driven by high single digit volume growth and a foreign exchange tailwind in the period. Volume growth reflected resilient housing activity in the Australian housing market, ongoing share gains, and continued conversion from competing materials.
Operating Income Margin was 31.0%, up 240 basis points year over year. EBITDA margin was 35.3%, up 260 basis points year over year. These increases were the result of strong flow-through on higher volumes, manufacturing efficiencies and lower input costs, together with the non-recurrence of a prior-year provision related to the closure of a New Zealand site, were partially offset by higher freight costs.
The Company is focused on driving growth in Australia and New Zealand by evolving from a fiber cement business to a broader building products platform. The strategy centers on defending and extending our core fiber cement operations while accelerating adoption of whole-home solutions, including Hardie™ Gravis™, and expanding into outdoor living with TimberTech® by James Hardie decking.

Earnings Release: James Hardie - Second Quarter Ended September 30, 2026
4
Earnings Release
November 5, 2026
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Outlook
Q3 FY27 Guidance and Full Year Planning Assumptions (Continuing Operations)

Ryan Lada, CFO said, “Our second quarter sales growth reflected share gains, continued traction of our growth initiatives and the early benefits of our expanded distribution partnerships. Higher Net Income Margin and the 450 basis point increase in Adjusted EBITDA Margin was driven by favorable volume, price and mix and HOS savings; offset by general inflation and higher freight costs, with Net Income Margin also benefiting from lower acquisition-related expenses.
We are reaffirming our consolidated full-year fiscal 2027 net sales and Adjusted EBITDA guidance and increasing our free cash flow target to more than $650 million. We expect Adjusted EBITDA to be lower in the third quarter and second half driven by DR&A seasonality in Q3, incremental freight costs and the weaker macro environment.
Strong cash generation is accelerating our deleveraging. First-half free cash flow was $535 million and we repaid $111 million of term loan debt in the quarter. Together with the expected proceeds from the Europe divestiture, we remain on track to reach net leverage below 2.0x by the end of the second quarter of fiscal 2028."

We provide certain elements of our outlook on a non-GAAP basis, as we cannot predict some elements that are included in reported GAAP results, including the impact of actuarial estimates on asbestos-related assets and liabilities in future periods. Refer to the discussion of non-GAAP financial measures below for more details.

Third Quarter Guidance Assumptions:
•Net Sales for Siding & Trim: $758 to $800 million
•Net Sales for Deck, Rail & Accessories: $164 to $190 million
•Total Net Sales: $1.058 to $1.140 billion
•Adjusted EBITDA for Siding & Trim: $245 to $262 million
•Adjusted EBITDA for Deck, Rail & Accessories: $38 to $49 million
•Total Adjusted EBITDA: $298 to $320 million
Updated Full Year Planning Assumptions:
•Net Sales for Siding & Trim: $3.236 to $3.314 billion
•Net Sales for Deck, Rail & Accessories: $1.198 to $1.240 billion
•Total Net Sales: $4.990 to $5.133 billion
•Adjusted EBITDA for Siding & Trim: $1.046 to $1.085 billion
•Adjusted EBITDA for Deck, Rail & Accessories: $355 to $375 million
•Total Adjusted EBITDA: $1.446 to $1.534 billion
•Free Cash Flow: More than $650 million


Earnings Release: James Hardie - Second Quarter Ended September 30, 2026
5
Earnings Release
November 5, 2026
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Cash Flow, Capital Investment & Allocation
First half operating cash flow totaled $693.7 million, up from $254.3 million a year ago, driven by net income adjusted for non-cash items of $682.5 million and a $99.2 million working capital inflow, partially offset by $65.2 million of asbestos claims and handling costs paid. Capital expenditures totaled $158.3 million, resulting in Free Cash Flow of $535.4 million for the six month period versus $58.4 million for the prior year period.

Our capital allocation priorities for FY2027 are unchanged: invest in organic growth and reduce leverage. We expect to apply approximately $600 million of proceeds from the Europe divestiture, which is expected to close in the first half of calendar 2027, toward debt repayment. Together with continued free cash flow generation, this is expected to support our target of net leverage below 2.0x by the end of the second quarter of FY2028.

For FY2027, we continue to expect capital expenditures to be in the range of approximately 6% to 7% of net sales, reflecting maintenance and targeted growth investments across the manufacturing network. Our footprint today is well positioned and equipped to support demand across both fiber cement and decking, and we do not anticipate the need for significant new capacity in the near term.

The previously announced closures of our Fontana, California and Summerville, South Carolina facilities are expected to generate approximately $25 million in annualized cost savings for Fiscal Year 2027.


Earnings Release: James Hardie - Second Quarter Ended September 30, 2026
6
Earnings Release
November 5, 2026
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Reported Financial Results
(Millions of U.S. dollars)
(Unaudited)
September 30,
2026
March 31,
2026
Assets
Current assets:
Cash and cash equivalents$323.1 $265.4 
Restricted cash and cash equivalents27.5 75.2 
Restricted short-term investments — Asbestos216.1 198.5 
Accounts and other receivables, net430.9 420.1 
Inventories511.7 551.3 
Prepaid expenses and other current assets94.7 111.9 
Assets held for sale939.7 977.1 
Total current assets2,543.7 2,599.5 
Property, plant and equipment, net2,617.6 2,677.8 
Operating lease right-of-use assets114.9 117.9 
Finance lease right-of-use assets97.3 100.6 
Goodwill4,572.2 4,575.4 
Intangible assets, net3,043.8 3,198.8 
Deferred income taxes62.2 70.0 
Deferred income taxes — Asbestos270.3 282.5 
Other assets78.4 66.1 
Total assets$13,400.4 $13,688.6 
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable and accrued liabilities$561.4 $568.6 
Accrued payroll and employee benefits138.3 150.0 
Operating lease liabilities30.9 28.7 
Finance lease liabilities5.7 5.4 
Long-term debt, current portion54.7 43.8 
Accrued product warranties10.5 10.2 
Income taxes payable15.8 11.4 
Asbestos liability130.7 128.3 
Liabilities held for sale210.6 233.3 
Other liabilities44.1 56.7 
Total current liabilities1,202.7 1,236.4 
Long-term debt3,962.6 4,491.2 
Deferred income taxes376.4 348.1 
Operating lease liabilities97.8 103.5 
Finance lease liabilities96.3 97.9 
Accrued product warranties54.4 53.3 
Asbestos liability832.3 880.3 
Other liabilities51.7 52.4 
Total liabilities6,674.2 7,263.1 
Total shareholders’ equity6,726.2 6,425.5 
Total liabilities and shareholders’ equity$13,400.4 $13,688.6 

Earnings Release: James Hardie - Second Quarter Ended September 30, 2026
7
Earnings Release
November 5, 2026
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(Unaudited)
Three Months Ended September 30,
(Unaudited)
Six Months Ended September 30,
(Millions of U.S. dollars, except per share data)2026202520262025
Net sales$1,428.2 $1,154.7 $2,746.4 $1,918.1 
Cost of goods sold865.8 776.0 1,685.8 1,246.6 
Gross profit562.4 378.7 1,060.6 671.5 
Selling, general and administrative expenses268.5 222.2 533.1 348.2 
Research and development expenses14.6 14.9 29.1 26.2 
Restructuring expenses0.8 — 6.0 — 
Acquisition and divestiture related expenses14.9 128.9 31.5 158.3 
Asbestos adjustments
0.3 0.2 (1.3)0.9 
Operating income263.3 12.5 462.2 137.9 
Interest, net54.8 67.1 116.1 106.1 
Other (income) expense, net(18.9)(1.4)(19.9)9.7 
Income (loss) before income taxes227.4 (53.2)366.0 22.1 
Income tax expense77.6 11.1 125.6 34.1 
Net income (loss) from continuing operations149.8 (64.3)240.4 (12.0)
Income from discontinued operations, net of tax1.2 8.5 14.9 18.8 
Net income (loss)$151.0 $(55.8)$255.3 $6.8 
Income (loss) per share:
Basic
Continuing operations$0.26 $(0.11)$0.41 $(0.03)
Discontinued operations$— $0.01 $0.03 $0.04 
Net income (loss) per share - basic$0.26 $(0.10)$0.44 $0.01 
Diluted
Continuing operations$0.26 $(0.11)$0.41 $(0.03)
Discontinued operations$— $0.01 $0.03 $0.04 
Net income (loss) per share - diluted$0.26 $(0.10)$0.44 $0.01 
Weighted average common shares outstanding (Millions):
Basic581.0 577.4 580.6 504.0 
Diluted585.8 577.4 584.8 504.0 


Earnings Release: James Hardie - Second Quarter Ended September 30, 2026
8
Earnings Release
November 5, 2026
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(Unaudited)
 Six Months Ended September 30,
(Millions of U.S. dollars)20262025
Cash Flows From Operating Activities
Net income$255.3 $6.8 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization331.4 182.9 
Lease expense24.1 18.5 
Deferred income taxes31.8 7.7 
Share-based compensation30.3 19.9 
Asbestos adjustments
(1.3)0.9 
Non-cash restructuring expenses2.5 — 
Non-cash interest expense4.8 4.3 
Non-cash charge related to step up of inventory— 47.9 
Other, net3.6 28.6 
Changes in operating assets and liabilities:
Accounts and other receivables42.3 101.4 
Inventories54.1 (50.2)
Operating lease assets and liabilities, net(28.4)(20.9)
Prepaid expenses and other assets(1.8)(14.9)
Insurance receivable — Asbestos1.2 1.7 
Accounts payable and accrued liabilities2.8 (9.1)
Claims and handling costs paid — Asbestos(65.2)(61.0)
Income taxes payable10.3 (3.3)
Other accrued liabilities and interest(4.1)(6.9)
Net cash provided by operating activities$693.7 $254.3 
Cash Flows From Investing Activities
Purchases of property, plant and equipment$(158.3)$(195.9)
Capitalized interest— (5.1)
Cash consideration for The AZEK Company acquisition, net of cash acquired— (3,919.8)
Purchase of restricted investments — Asbestos(117.9)(96.4)
Proceeds from restricted investments — Asbestos104.1 96.4 
Net cash used in investing activities$(172.1)$(4,120.8)
Cash Flows From Financing Activities
Proceeds from senior secured notes$— $1,700.0 
Proceeds from revolving facility530.0 — 
Proceeds from term loans— 2,500.0 
Repayments of term loans(121.9)(301.6)
Repayment of revolving facility(530.0)— 
Repayment of senior unsecured notes(400.0)— 
Debt issuance costs paid— (42.0)
Proceeds from exercise of vested stock options13.5 — 
Repayment of finance lease obligations(3.0)(1.5)
Cash paid for shares withheld for taxes(1.9)(6.3)
Net cash (used in) provided by financing activities$(513.3)$3,848.6 
Effects of exchange rate changes on cash and cash equivalents and restricted cash$(0.1)$(0.7)
Net increase (decrease) cash and cash equivalents and restricted cash8.2 (18.6)
Cash and cash equivalents, restricted cash and restricted cash including discontinued operations at beginning of period344.4 605.6 
Cash and cash equivalents and restricted cash including discontinued operations at end of period$352.6 $587.0 

Earnings Release: James Hardie - Second Quarter Ended September 30, 2026
9
Earnings Release
November 5, 2026
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(Unaudited)
 Six Months Ended September 30,
(Millions of U.S. dollars)20262025
Non-Cash Investing and Financing Activities
Capital expenditures incurred but not yet paid$20.7 $35.5 
Non-cash ROU assets obtained in exchange for new lease liabilities$21.3 $13.6 
Non-cash consideration for AZEK acquisition$— $4,143.6 
Supplemental Disclosure of Cash Flow Activities
Cash paid during the year for interest$125.8 $61.0 
Cash paid to AICF$22.2 $31.4 

Earnings Release: James Hardie - Second Quarter Ended September 30, 2026
10
Earnings Release
November 5, 2026
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Further Information
 
Readers are referred to Part I, Item 1. Financial Statements and Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations in the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2026 for additional information regarding the Company’s results.
All comparisons made are vs. the comparable period in the prior fiscal year and amounts presented are in U.S. dollars, unless otherwise noted.
Conference Call Details
James Hardie will hold a conference call to discuss results and outlook Thursday, November 5, 2026 at 5:00pm ET (Friday, November 6, 2026 at 9:00am AET). Participants may register for a live webcast and access a replay following the event of the event on the Investor Relations section of the Company’s website (ir.jameshardie.com).
About James Hardie
James Hardie Industries plc is the industry leader in exterior home and outdoor living solutions, with a portfolio that includes fiber cement, composite decking, PVC decking and railing products. Products offered by James Hardie are engineered for beauty, durability, and climate resilience, and include trusted brands like Hardie®, TimberTech®, AZEK® Exteriors, Versatex®, and StruXure®. The James Hardie portfolio is marketed and sold throughout North America, Australia and New Zealand.
James Hardie Industries plc is incorporated and existing under the laws of Ireland. As an Irish plc, James Hardie is governed by the Irish Companies Act. James Hardie’s principal executive offices are located at 1st Floor, Block A, One Park Place, Upper Hatch Street, Dublin 2, D02 FD79, Ireland.
Investor and Media Contact
Bill Seymour
V.P. Investor Relations
T: +1 312 856 7460
E: investors@jameshardie.com

Earnings Release: James Hardie - Second Quarter Ended September 30, 2026
11
Earnings Release
November 5, 2026
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Forward-Looking Statements
This Earnings Release contains forward-looking statements and information within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, which are not statements of historical fact, contain estimates, assumptions, projections and/or expectations regarding future events, which may or may not occur. Words such as “believe,” “anticipate,” “plan,” “expect,” “intend,” “target,” “estimate,” “project,” “predict,” “forecast,” “guideline,” “aim,” “will,” “should,” “likely,” “continue,” “may,” “objective,” “outlook” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. These forward-looking statements are subject to a number of risks, uncertainties and assumptions. Many factors could cause the actual results, performance or achievements of James Hardie to be materially different from those expressed or implied in this release, including, among others, the risks and uncertainties described in "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended March 31, 2026 and in other reports we file with the U.S. Securities and Exchange Commission and the Australian Securities Exchange from time to time; changes in general economic, political, governmental and business conditions globally and in the countries in which James Hardie does business; changes in interest rates; changes in inflation rates; changes in exchange rates; the level of construction generally; changes in cement demand and prices; changes in raw material and energy prices; changes in business strategy; the AZEK integration and the European divestiture and their anticipated benefits and various other factors. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein.
Forward-looking statements are based on the Company’s current expectations, estimates and assumptions. Readers are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made, and the Company assumes no obligation to update any forward-looking statements or information except as required by law.

Earnings Release: James Hardie - Second Quarter Ended September 30, 2026
12
Earnings Release
November 5, 2026
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Non-GAAP Financial Measures
To supplement our Earnings Release and condensed consolidated financial statements prepared and presented in accordance with generally accepted accounting principles in the United States ("GAAP"), we use certain non-GAAP financial measures, as described in this earnings release, to provide investors with additional useful information about our financial performance, to enhance the overall understanding of our past performance and future prospects and to allow for greater transparency with respect to important metrics used by our management for financial and operational decision-making. We are presenting these non-GAAP financial measures to assist investors in seeing our financial performance and liquidity from management’s view and because we believe they provide an additional tool for investors to use in comparing our core financial performance and liquidity over multiple periods with other companies in our industry.
•Adjusted Net Income: Defined as net income from continuing operations before legacy items such as asbestos related expenses and adjustments, AICF interest income, and significant non-recurring items, such as restructuring gain or expenses, acquisition and divestiture related expenses, pre-close financing costs, non-cash gain on foreign currency forward contracts, inventory fair value adjustment, amortization of intangible assets resulting from AZEK acquisition, as well as share-based compensation expense and adjustments to tax expenses.
•Adjusted EBITDA: Defined as net income from continuing operations before interest, net, other expense (income), net, income tax expense, depreciation and amortization, legacy items such as asbestos related expenses and adjustments, share-based compensation expense, and significant non-recurring items, such as restructuring gain and expenses, acquisition and divestiture related expenses and inventory fair value adjustment. Adjusted EBITDA Margin is equal to Adjusted EBITDA divided by net sales.
•Adjusted Diluted EPS: Defined as Adjusted Net Income divided by weighted average common shares outstanding – diluted, to reflect the conversion or exercise, as applicable, of all outstanding shares of restricted stock awards, restricted stock units and options to purchase shares of our common stock.
•Adjusted Segment EBITDA: Defined as segment operating income before depreciation and amortization and significant non-recurring items such as restructuring expenses, acquisition and divestiture related expenses, inventory fair value adjustment and amortization of intangible assets resulting from AZEK acquisition. The Company does not calculate net income by segment, therefore, Adjusted Segment EBITDA is reconciled to the closest GAAP measure of segment profitability, Segment operating profit.
•Adjusted General Corporate and Unallocated R&D EBITDA: Defined as General Corporate and Unallocated R&D costs before depreciation and amortization, share-based compensation expense, legacy items such as asbestos related expenses and adjustments, and significant non-recurring items such as restructuring gain or expenses, and acquisition and divestiture related expenses. The Company does not calculate net income for General Corporate and Unallocated R&D costs, therefore, Adjusted General Corporate and Unallocated R&D EBITDA is reconciled to the closest GAAP measure of profitability, General Corporate and unallocated R&D costs.
•Adjusted Income Before Income Taxes: Defined as Income before income taxes before share-based compensation expense, legacy items such as asbestos related expenses and adjustments and AICF interest income, and significant non-recurring items such as restructuring gains or expenses, pre-close financing costs, non-cash gain on foreign currency forward contracts, acquisition and divestiture related expenses, inventory fair value adjustment and amortization of intangible assets resulting from AZEK acquisition.
•Adjusted Income Tax Expense: Defined as income tax expense before tax adjustments.

Earnings Release: James Hardie - Second Quarter Ended September 30, 2026
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Earnings Release
November 5, 2026
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•Adjusted Effective Tax Rate: Defined as Adjusted Income Tax Expense divided by Adjusted Income Before Income Taxes.
•Adjusted Interest, net: Defined as Interest, net before legacy items such as AICF interest income, and significant non-recurring items such as pre-close financing and interest costs.
•Adjusted Other Expense (Income), net: Defined as Other expense (income), net, before significant non-recurring items such as non-cash gain on foreign currency forward contracts and non-cash loss on interest rate swap.
•Net Leverage: Defined as gross debt less cash and cash equivalents, divided by trailing twelve month Adjusted EBITDA.
•Free Cash Flow: Defined as net cash provided by (used in) operating activities less purchases of property, plant and equipment plus proceeds from sale of property, plant and equipment.
These non-GAAP financial measures have limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of our results as reported under GAAP. Non-GAAP financial measures may be calculated differently from, and therefore may not be directly comparable to, similarly titled measures used by other companies. See the accompanying earnings tables for a reconciliation of these non-GAAP measures to their most directly comparable GAAP measures.
The Company is unable to forecast the most directly comparable U.S. GAAP financial measure for future periods due to, amongst other factors, uncertainty regarding the impact of actuarial estimates on asbestos-related assets and liabilities in future periods. Such reconciling items that impact Adjusted EBITDA and Free Cash Flow have not occurred, are outside of our control or cannot be reasonably predicted. Accordingly, a reconciliation of each of Adjusted EBITDA and Free Cash Flow to its most directly comparable GAAP measure is not available without unreasonable effort. However, it is important to note that material changes to these reconciling items could have a significant effect on our Adjusted EBITDA and Free Cash Flow planning assumptions and future GAAP results.
This Earnings Release has been authorized by the James Hardie Board of Directors.

Earnings Release: James Hardie - Second Quarter Ended September 30, 2026
14
Earnings Release
November 5, 2026
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Non-GAAP Financial Measures
Total Net Sales
(Millions of U.S. dollars)Three Months Ended September 30,
2026
Net sales from continuing operations$1,428.2 
Net sales from discontinued operations135.3 
Total net sales$1,563.5 
Adjusted EBITDA and Adjusted EBITDA Margin
(Millions of U.S. dollars)Three Months Ended September 30,Six Months Ended September 30,
2026202520262025
Net income (loss) from continuing operations$149.8 $(64.3)$240.4 $(12.0)
Interest, net54.8 67.1 116.1 106.1 
Other (income) expense, net
(18.9)(1.4)(19.9)9.7 
Income tax expense77.6 11.1 125.6 34.1 
Depreciation and amortization155.7 119.1 314.4 168.8 
Acquisition and divestiture related expenses1
14.9 128.9 31.5 158.3 
Asbestos related expenses and adjustments1.0 0.9 — 1.9 
Inventory fair value adjustment— 47.9 — 47.9 
Restructuring expenses0.8 — 6.0 — 
Share-based compensation expense2
19.0 5.6 33.3 15.8 
Adjusted EBITDA$454.7 $314.9 $847.4 $530.6 
Three Months Ended September 30,Six Months Ended September 30,
2026202520262025
Net income (loss) from continuing operations margin10.5 %(5.6)%8.8%(0.6%)
Interest, net3.8 %5.8 %4.2%5.5%
Other (income) expense, net
(1.3)%(0.1)%(0.7%)0.5%
Income tax expense5.4 %1.0 %4.6%1.8%
Depreciation and amortization10.9 %10.3 %11.5%8.8%
Acquisition and divestiture related expenses1
1.0 %11.2 %1.1%8.3%
Asbestos related expenses and adjustments0.1 %0.1 %—%0.1%
Inventory fair value adjustment— %4.1 %—%2.5%
Restructuring expenses0.1 %— %0.2%—%
Share-based compensation expense2
1.3 %0.5 %1.2 %0.8 %
Adjusted EBITDA Margin31.8 %27.3 %30.9 %27.7 %
1.The three months ended September 30, 2026 period includes acquisition expenses of $9.7 million and divestiture expenses of $5.2 million. The six months ended September 30, 2026 period includes acquisition expenses of $22.2 million and divestiture expenses of $9.3 million. The prior year is entirely acquisition related expenses.
2.Effective as of June 30, 2026, we revised the definition of Adjusted EBITDA and Adjusted EBITDA Margin to exclude share-based compensation expense. Prior periods have been recast to reflect the change. For the three and six months ended September 30, 2026, share-based compensation expense of $0.5 million and $0.8 million, respectively, is included in acquisition related expenses. For both the three and six months September 30, 2025 periods, share-based compensation expense of $8.5 million is included in acquisition and divestiture related expenses.




Earnings Release: James Hardie - Second Quarter Ended September 30, 2026
15
Earnings Release
November 5, 2026
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Adjusted Net Income and Adjusted Diluted Earnings Per Share
(Millions of U.S. dollars, except per share amounts)Three Months Ended September 30,Six Months Ended September 30,
2026202520262025
Net income (loss) from continuing operations$149.8 $(64.3)$240.4 $(12.0)
Asbestos related expenses and adjustments1.00.9—1.9
AICF interest income(3.3)(2.4)(6.6)(5.0)
Restructuring expenses0.8—6.0—
Pre-close financing costs1
———46.5
Non-cash gain on foreign currency forward contracts(19.4)—(19.4)—
Acquisition and divestiture related expenses2
14.9128.931.5158.3
Inventory fair value adjustment—47.9—47.9
Amortization of intangible assets resulting from AZEK acquisition77.548.7155.148.7
Share-based compensation expense3
19.05.633.315.8
Tax impact of adjustments4
8.2(16.9)2.9(29.5)
Adjusted Net Income$248.5 $148.4 $443.2 $272.6 
Three Months Ended September 30,Six Months Ended September 30,
2026202520262025
Net income (loss) from continuing operations per common share - diluted$0.26 $(0.11)$0.41 $(0.03)
Asbestos related expenses and adjustments————
AICF interest income(0.01)—(0.01)(0.01)
Restructuring expenses——0.01—
Pre-close financing costs1
———0.09
Non-cash gain on foreign currency forward contracts(0.03)—(0.03)—
Acquisition and divestiture related expenses2
0.030.220.050.32
Inventory fair value adjustment—0.08—0.09
Amortization of intangible assets resulting from AZEK acquisition0.130.080.270.10
Share-based compensation expense3
0.030.010.060.03
Tax impact of adjustments4
0.01(0.03)—(0.05)
Adjusted Diluted Earnings Per Share5
$0.42 $0.25 $0.76 $0.54 
1.The six months ended September 30, 2025 period includes pre-close financing interest of $34.9 million and $11.6 million non-cash loss on our interest rate swap.
2.The three months ended September 30, 2026 period includes acquisition expenses of $9.7 million and divestiture expenses of $5.2 million. The six months ended September 30, 2026 period includes acquisition expenses of $22.2 million and divestiture expenses of $9.3 million. The prior year is entirely acquisition related expenses.
3.Effective as of June 30, 2026, we revised the definition of Adjusted Net Income and Adjusted Diluted Earnings Per Share to exclude share-based compensation expense. Prior periods have been recast to reflect the change. For the three and six months ended September 30, 2026, share-based compensation expense of $0.5 million and $0.8 million, respectively, is included in acquisition and divestiture related expenses. For both the three and six months September 30, 2025 periods, share-based compensation expense of $8.5 million is included in acquisition and divestiture related expenses.
4.Includes tax adjustments related to the amortization of certain U.S. intangible assets, asbestos, share-based compensation and discrete items relating to the acquisition and divestiture costs.
5.Weighted average common shares outstanding used in computing diluted net income per common share of 585.8 million and 582.1 million for the three months ended September 30, 2026 and 2025, respectively. Weighted average common shares outstanding used in computing diluted net income per common share of 584.8 million and 508.6 million for the six months ended September 30, 2026 and 2025, respectively.


Earnings Release: James Hardie - Second Quarter Ended September 30, 2026
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Earnings Release
November 5, 2026
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Siding & Trim Segment Adjusted EBITDA and Adjusted EBITDA Margin
(Millions of U.S. dollars)Three Months Ended September 30,Six Months Ended September 30,
2026202520262025
Siding & Trim Segment operating income$232.0 $151.0 $446.9 $312.2 
Acquisition and divestiture related expenses1
4.7 3.8 9.0 4.8 
Inventory fair value adjustment— 11.2 — 11.2 
Amortization of intangible assets resulting from AZEK acquisition18.6 10.8 37.1 10.8 
Restructuring expenses0.8 — 0.8 — 
Depreciation and amortization48.3 47.2 98.3 90.8 
Siding & Trim Segment Adjusted EBITDA$304.4 $224.0 $592.1 $429.8 
Three Months Ended September 30,Six Months Ended September 30,
2026202520262025
Siding & Trim Segment operating income margin26.4%19.7%25.7%22.2%
Acquisition and divestiture related expenses1
0.5%0.5%0.5%0.3%
Inventory fair value adjustment—%1.5%—%0.8%
Amortization of intangible assets resulting from AZEK acquisition2.1%1.4%2.1%0.8%
Restructuring expenses0.1%—%—%—%
Depreciation and amortization5.5%6.1%5.7%6.4%
Siding & Trim Segment Adjusted EBITDA Margin34.6%29.2%34.0%30.5%
1.The three months ended September 30, 2026 period includes acquisition expenses of $3.0 million and divestiture expenses of $1.7 million. The six months ended September 30, 2026 period includes acquisition expenses of $7.3 million and divestiture expenses of $1.7 million. The prior year is entirely acquisition related expenses.
Deck, Rail & Accessories Segment Adjusted EBITDA and Adjusted EBITDA Margin
(Millions of U.S. dollars)Three Months Ended September 30,Six Months Ended September 30,
2026202520262025
Deck, Rail & Accessories operating income (loss)$48.6 $(11.9)$45.3 $(11.9)
Restructuring expenses— — 5.2 — 
Inventory fair value adjustment— 36.7 — 36.7 
Amortization of intangible assets resulting from AZEK acquisition58.9 37.9 118.0 37.9 
Depreciation and amortization21.2 15.9 43.0 15.9 
Deck, Rail & Accessories Segment Adjusted EBITDA$128.7 $78.6 $211.5 $78.6 
Three Months Ended September 30,Six Months Ended September 30,
2026202520262025
Deck, Rail & Accessories operating income (loss) margin12.6%(4.7%)6.5%(4.7%)
Restructuring expenses—%—%0.8%—%
Inventory fair value adjustment—%14.4%—%14.4%
Amortization of intangible assets resulting from AZEK acquisition15.2%14.8%17.1%14.8%
Depreciation and amortization5.5%6.2%6.2%6.2%
Deck, Rail & Accessories Segment Adjusted EBITDA Margin33.3%30.7%30.6%30.7%

Earnings Release: James Hardie - Second Quarter Ended September 30, 2026
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Earnings Release
November 5, 2026
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Australia & New Zealand Segment EBITDA and EBITDA Margin

(Millions of U.S. dollars)Three Months Ended September 30,Six Months Ended September 30,
2026202520262025
Australia & New Zealand Segment operating income $49.9 $38.0 $96.7 $75.8 
Depreciation and amortization6.9 5.5 13.6 10.7 
Australia & New Zealand Segment EBITDA$56.8 $43.5 $110.3 $86.5 

Three Months Ended September 30,Six Months Ended September 30,
2026202520262025
Australia & New Zealand Segment operating income margin31.0%28.6%30.8%29.8%
Depreciation and amortization4.3%4.1%4.3%4.2%
Australia & New Zealand Segment EBITDA Margin35.3%32.7%35.1%34.0%

Adjusted General Corporate and Unallocated R&D EBITDA

(Millions of U.S. dollars)Three Months Ended September 30,Six Months Ended September 30,
2026202520262025
General Corporate and Unallocated R&D costs$(67.2)$(164.6)$(126.7)$(238.2)
Acquisition and divestiture related expenses1
10.2 125.1 22.5 153.5 
Asbestos related expenses and adjustments1.0 0.9 — 1.9 
Share-based compensation expense2
19.0 5.6 33.3 15.8 
Depreciation and amortization1.8 1.8 4.4 2.7 
Adjusted General Corporate and Unallocated R&D EBITDA$(35.2)$(31.2)$(66.5)$(64.3)
1.The three months ended September 30, 2026 includes acquisition expenses of $6.7 million and divestiture expenses of $3.5 million. The six months ended September 30, 2026 includes acquisition expenses of $14.9 million and divestiture expenses of $7.6 million. The prior year is entirely acquisition related expenses.
2.Effective as of June 30, 2026, we revised the definition of Adjusted General Corporate and Unallocated R&D EBITDA to exclude share-based compensation expense. Prior periods have been recast to reflect the change. For the three and six months ended September 30, 2026, share-based compensation expense of $0.5 million and $0.8 million, respectively, is included in acquisition and divestiture related expenses. For both the three and six months September 30, 2025 periods, share-based compensation expense of $8.5 million is included in acquisition and divestiture related expenses.

Earnings Release: James Hardie - Second Quarter Ended September 30, 2026
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Earnings Release
November 5, 2026
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Adjusted Income Before Income Taxes, Adjusted Income Tax Expense and Adjusted Effective Tax Rate

(Millions of U.S. dollars)Three Months Ended September 30,Six Months Ended September 30,
2026202520262025
Income (Loss) before income taxes$227.4 $(53.2)$366.0 $22.1 
Asbestos related expenses and adjustments1.0 0.9 — 1.9 
AICF interest income(3.3)(2.4)(6.6)(5.0)
Restructuring expenses0.8 — 6.0 — 
Pre-close financing costs1
— — — 46.5 
Non-cash gain on foreign currency forward contracts(19.4)— (19.4)— 
Acquisition and divestiture related expenses2
14.9 128.9 31.5158.3 
Inventory fair value adjustment— 47.9 — 47.9 
Amortization of intangible assets resulting from AZEK acquisition77.5 48.7 155.1 48.7 
Share-based compensation expense3
19.0 5.6 33.3 15.8 
Adjusted Income Before Income Taxes$317.9 $176.4 $565.9 $336.2 
Income tax expense$77.6 $11.1 $125.6 $34.1 
Tax impact of adjustments4
(8.2)16.9 (2.9)29.5 
Adjusted Income Tax Expense$69.4 $28.0 $122.7 $63.6 
Effective Tax Rate34.1%(20.9%)34.3%154.3%
Adjusted Effective Tax Rate21.8%15.9%21.7%18.9%
1The six months ended September 30, 2025 period includes pre-close financing interest of $34.9 million and $11.6 million non-cash loss on our interest rate swap.

2The three months ended September 30, 2026 includes acquisition expenses of $9.7 million and divestiture expenses of $5.2 million. The six months ended September 30, 2026 period includes acquisition expenses of $22.2 million and divestiture expenses of $9.3 million. The prior year is entirely acquisition related expenses.
3Effective as of June 30, 2026, we revised the definition of Adjusted Income Before Income Taxes to exclude share-based compensation expense. Prior periods have been recast to reflect the change. For the three and six months ended September 30, 2026, share-based compensation expense of $0.5 million and $0.8 million, respectively, is included in acquisition and divestiture related expenses. For both the three and six months September 30, 2025 periods, share-based compensation expense of $8.5 million is included in acquisition and divestiture related expenses.
4Includes tax adjustments related to the amortization of certain U.S. intangible assets, asbestos, share-based compensation and discrete items relating to the acquisition and divestiture costs.

Adjusted Interest, Net

(Millions of U.S. dollars)Three Months Ended September 30,Six Months Ended September 30,
2026202520262025
Interest, net$54.8 $67.1 $116.1 $106.1 
Pre-close financing and interest costs———(34.9)
AICF interest income3.32.46.65.0
Adjusted Interest, Net$58.1 $69.5 $122.7 $76.2 


Earnings Release: James Hardie - Second Quarter Ended September 30, 2026
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Earnings Release
November 5, 2026
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Adjusted Other Expense (Income), Net

(Millions of U.S. dollars)Three Months Ended September 30,Six Months Ended September 30,
2026202520262025
Other (income) expense, net$(18.9)$(1.4)$(19.9)$9.7 
Non-cash gain on foreign currency forward contracts 19.4—19.4—
Non-cash loss on interest rate swap———(11.6)
Adjusted Other Expense (Income), Net$0.5 $(1.4)$(0.5)$(1.9)

Free Cash Flow
The following Free Cash Flow reconciliation includes discontinued operations.
(Millions of U.S. dollars)Six Months Ended September 30,
20262025
Net cash provided by operating activities$693.7 $254.3 
Purchases of property, plant and equipment(158.3)(195.9)
Free Cash Flow$535.4 $58.4 
Net cash used in investing activities$(172.1)$(4,120.8)
Net cash (used in) provided by financing activities$(513.3)$3,848.6 
Pro Forma Net Sales
(Millions of U.S. dollars)Fiscal Year Ended
March 31, 2026
Net sales from continuing operations $4,278.9 
AZEK net sales for Q1 FY26416.6 
Total Pro Forma net sales from continuing operations$4,695.5 

Earnings Release: James Hardie - Second Quarter Ended September 30, 2026
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