James Hardie Shares at Six-Month High on Third-Quarter Earnings Beat

By David Winning

SYDNEY--Shares of building materials supplier James Hardie Industries jumped to a six-month high as its third-quarter profit beat prompted speculation that its guidance could be conservative.

The stock was up 13% at A$37.62 mid-morning in Australia, putting it on track to achieve its highest close since the last corporate earnings season in August.

James Hardie reported adjusted earnings before interest, tax, depreciation and amortization of US$329.9 million in the three months through December. That was up 26% on a year earlier and 6% higher than consensus expectations ahead of Wednesday's result.

The company tweaked its forecast for annual adjusted Ebitda to US$1.232 billion-US$1.263 billion. It had previously projected an outcome of US$1.20 billion-US$1.25 billion.

Barrenjoey analyst Brook Campbell-Crawford said James Hardie had delivered a good result and its guidance for the final quarter of FY 2026 appears conservative.

Jarden, which rates James Hardie at overweight, took a similar view. "Guidance upgrade is positive but is not sufficient for 3Q beat, implying 1% consensus downgrades for 4Q," said analyst Daniel Sykes.

James Hardie has forecast adjusted Ebitda for its Siding & Trim division of US$939 million-US$962 million in fiscal 2026, compared with prior guidance of US$920 million-US$955 million.

That looks conservative because it suggests Siding & Trim margins will contract in the fourth quarter, even if James Hardie achieves the top end of its earnings guidance range for the division, Jarden says.

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

(END) Dow Jones Newswires

February 10, 2026 20:19 ET (01:19 GMT)