James Hardie Industries plc (NYSE:JHX) shares surged 10% on Tuesday after the building materials manufacturer posted preliminary second-quarter results that came in well above Wall Street expectations, thanks to resilient performance in its Siding & Trim division.
The company said it expects net sales between $1.29 billion and $1.30 billion for the quarter — far exceeding the analyst consensus of $1.19 billion. Adjusted earnings per share are projected to range between $0.26 and $0.27, well ahead of expectations of $0.15.
James Hardie’s Siding & Trim segment showed remarkable stability, with organic net sales declining only slightly in the low single digits compared to the same period last year. The company said distributors and dealers reduced inventory less than anticipated, despite continued weakness in single-family new construction markets.
“Our customers’ commitment to ensuring the availability of our products demonstrates the importance of our brand and strong partnerships,” said Aaron Erter, CEO of James Hardie. “We are encouraged by our second quarter results and believe the outlook for Siding & Trim has modestly improved.”
The company also highlighted steady integration progress with AZEK, reporting mid-single-digit growth in net sales and sell-through for its Deck, Rail & Accessories business year-over-year. Management confirmed that synergy realization and integration efforts remain on schedule.
James Hardie plans to update its full-year guidance through March during its second-quarter earnings call in November, as investors look for continued momentum from its core segments and recent acquisitions.
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