James Hardie Says AZEK Business Beating Expectations

By David Winning

SYDNEY--Building materials supplier James Hardie Industries said the performance of the recently acquired AZEK business has beaten its expectations and it has exceeded a target for cost savings from the deal in the current fiscal year.

"On the commercial side, we have captured early wins with several dealers, contractors and homebuilders, demonstrating our potential to drive accelerated material conversion across exteriors and outdoor living," Chief Executive Aaron Erter said of the AZEK business.

James Hardie acquired AZEK for some US$8.4 billion at the start of July. It had targeted US$125 million of cost savings within three years of the deal closing.

James Hardie made the comments on AZEK alongside a 34% rise in second-quarter net sales to US$1.3 billion. The company said its quarterly net income totalled US$24 million, with adjusted earnings before tax, depreciation and amortization of US$330 million.

Management raised guidance for annual adjusted Ebitda to US$1.20 billion-US$1.25 billion, from an earlier target of US$1.05 billion-US$1.15 billion. The improved guidance was supported by higher expectations for net sales of Siding & Trim.

"For Siding & Trim, we've seen more stable market conditions and normalized inventory levels than we had embedded in our prior outlook, giving us the confidence to modestly raise full-year guidance for the segment," Erter said.

Write to David Winning at david.winning@wsj.com

(END) Dow Jones Newswires

November 17, 2025 17:06 ET (22:06 GMT)