James Hardie Industries (NYSE:JHX) shares jumped 14% in premarket trading on Tuesday after the building materials giant reported preliminary second-quarter sales between $1.29 billion and $1.3 billion, well above analyst estimates of $1.17 billion. The company also posted earnings per share of $0.26, easily surpassing the consensus forecast of $0.15.
The strong results were fueled by resilient performance in James Hardie’s core Siding & Trim division, where sales slipped only slightly — a low single-digit decline year-over-year — outperforming both internal projections and broader market trends. Despite ongoing headwinds in single-family home construction, distributors and dealers trimmed inventories less than expected.
“Our Siding & Trim sales performance exceeded the expectations reflected in our modeling considerations,” said Aaron Erter, CEO of James Hardie. “Our customers’ commitment to ensuring the availability of our products demonstrates the importance of our brand and strong partnerships.”
The company’s recent acquisition of AZEK also boosted performance, delivering mid-single-digit growth in both net sales and sell-through for its Deck, Rail & Accessories category compared to the prior year. Management confirmed that integration and synergy efforts remain on track.
Erter added that James Hardie sees additional growth opportunities by expanding shelf space for Deck, Rail & Accessories products and integrating James Hardie Siding & Trim into AZEK’s dealer network, particularly within repair and remodel markets. The company plans to issue updated full-year guidance during its second-quarter earnings call in November.
The sharp rise in the stock reflects investor optimism over the better-than-expected sales performance and an improving outlook for the Siding & Trim business, which management characterized as “modestly improved.”
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