On Wednesday, James Hardie Industries (NYSE: JHX) boosted its annual profit view and announced a $300 million share buyback plan, after reporting better-than-expected second-quarter earnings on the back of strong performance in the Asia-Pacific region.
Shares of the fiber cement maker rose 7.27% to $34.10 in premarket trading.
James Hardie (NYSE: JHX) posted a 12% fall in its second-quarter adjusted net income to $157 million due to lower sales in North American operations, the company’s top profit generator.
However, the profit beat a Visible Alpha consensus of $145.9 million.
The company now expects at least $635 million in adjusted net income for fiscal 2025, compared with $630 million to $700 million previously forecast.
The North American fiber cement division – which accounted for more than 70% of James Hardie’s total sales in fiscal 2024 – brought in net sales of $695.8 million for the quarter ended September, lower than $734.4 million in the year-ago period.
Uncertainty over the mortgage rate direction, especially in North America, has discouraged homeowners to shift houses or undertake repair and remodel activities.
The 5% drop in net sales at the division was primarily due to market weakness, partially offset by a higher average net sales price due to a January price hike.
In fiscal year 2026, the company looks to grow its earnings before interest, taxes, depreciation, and amortization three times from 2024 for its North America division.
Citi analysts were cautious about fiscal 2026 amid potential challenges in the repair and remodel market related to home equity access.
