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FY26 adjusted EBITDA view below consensus

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1Q25 adjusted net income $126.9 million, misses consensus

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Shares down 30% in biggest one-day decline

(Updates with share moves in headline, paragraphs 1-2)

Aug 20 (Reuters) - James Hardie issued a bleak

warning for its North America business and forecast 2026

earnings below market view on Wednesday, as cash-strapped U.S.

homeowners put off any high-ticket renovation projects, sending

its shares tumbling 30%.

Shares of the Australian fiber cement maker crashed 30% in

early trade to A$31.070 apiece, marking their biggest intraday

decline. The stock was the worst loser in the ASX 200 benchmark

index, which was down 0.2% in the first 10 minutes of

trading.

James Hardie also cautioned that homebuilders were

recalibrating their product inventory in line with the slowing

demand for construction and remodelling projects, pushing its

expectations for a market recovery into the next business year.

"Homeowners are deferring large-ticket remodeling projects

like re-siding, and affordability remains the key impediment to

improvement in single-family new construction," CEO Aaron Erter

said in an exchange filing.

"Over the course of the summer, single-family new

construction activity has been weaker than anticipated and we

have adjusted our expectations to account for softer demand."

As a result, James Hardie forecast adjusted operating

earnings between $1.05 billion and $1.15 billion for the fiscal

year ending March 2026, below the Visible Alpha consensus of

$1.23 billion. It earned $1.1 billion in fiscal 2025.

"Demand in both repair and remodel and new construction in

North America is challenging," Erter said.

That was reflected in June's sales of new U.S. single-family

homes, which increased less than expected due to higher mortgage

rates, pushing inventory to levels last seen in late 2007.

James Hardie's fiber cement sales in North America, its

biggest money-making geography, declined 12% to $641.8 million

in the quarter ended June 30.

As a result, the Dublin-headquartered firm's adjusted net

income fell to $126.9 million in the first quarter from $177.6

million last year, missing the Visible Alpha estimate of $158.5

million.

James Hardie, which completed its $8.8 billion acquisition

of U.S. artificial decking maker AZEK on July 1, expects to

benefit from new supply agreements and product launches mainly

in fiscal 2027 and beyond, rather than in the second half of

FY26 as previously anticipated.