James Hardie (JHA) AI Stock Analysis

Company Guidance

For the second quarter, James Hardie expects net sales of $1.485 billion to $1.575 billion, or growth of 14.9% to 21.9%, and adjusted EBITDA of $420 million to $455 million; for full year fiscal 2027, it expects sales of $5.564 billion to $5.723 billion, or growth of 5.9% to 9% on a pro forma basis, adjusted EBITDA of $1.536 billion to $1.625 billion, free cash flow to exceed $500 million, and capital expenditures to be approximately 6% to 7% of net sales. The company expects adjusted net interest to normalize around $60 million per quarter for the remainder of the fiscal year, share count to remain broadly consistent throughout the year, and approximately $80 million to $100 million of cost pressure in fiscal 2027, with roughly 2/3 of that impact in North America, while $25 million in annualized fiscal year 2027 savings from the Fontana and Summerville plant closures is tracking as planned. It expects mid-single-digit sell-through in DR&A for the remainder of the year, Siding & Trim price and mix growth of 3.5% to 4% through the rest of the year, a fiscal 2027 $125 million run rate commercial revenue synergy target, net leverage of approximately 2.4x at the end of this fiscal year and less than 2x by fiscal Q2 2028, and is not assuming housing industry conditions improve from here.