James Hardie Industries (JHX) Q1 2027 earnings summary

Executive summary

• Net sales for Q1 FY27 reached $1.475 billion, up 64% year-over-year, exceeding guidance, driven by strong Siding & Trim performance and AZEK integration.

• Adjusted EBITDA was $422 million (28.6% margin), up 79%, with synergy realization ahead of schedule.

• Free cash flow increased 145% to $254 million, supporting deleveraging and future growth.

• Europe and Australia & New Zealand delivered double-digit revenue growth.

• Expanded partnerships with Boise Cascade and major regional distributors to drive channel reach and revenue synergies.

Financial highlights

• Adjusted diluted EPS rose 13% to $0.36, with adjusted net income up 54% to $209 million.

• Free cash flow for the quarter was $254 million, driven by higher profitability and lower capex.

• Adjusted EBITDA margin improved 230bps to 28.6%.

• Net leverage reduced to 2.7x after redeeming $400 million in senior unsecured notes.

• Adjusted effective tax rate was 21.7%.

Outlook and guidance

• Q2 FY27 net sales guidance: $1.485–$1.575 billion; adjusted EBITDA: $420–$455 million.

• Full-year FY27 sales outlook raised to $5.564–$5.723 billion (5.9%–9% pro forma growth); adjusted EBITDA expected at $1.536–$1.625 billion.

• Free cash flow for FY27 expected to exceed $500 million; capex at 6–7% of net sales.

• Siding & Trim and Deck, Rail & Accessories segments both expected to deliver organic growth.