James Hardie Industries (JHX) Q1 2027 earnings summary

Executive summary

• Net sales for Q1 reached $1.475 billion, up 64% year-over-year, driven by the AZEK acquisition and strong organic growth, exceeding guidance.

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

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

• Siding & Trim led segment gains with 20% organic growth; Europe and Australia/New Zealand delivered double-digit revenue growth.

• Expanded partnerships and integration of AZEK and Hardie sales forces drove channel expansion and commercial synergies.

Financial highlights

• Adjusted EPS was $0.36, up 13% year-over-year, diluted by increased share count from AZEK acquisition.

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

• Adjusted EBITDA margin improved 230bps to 28.6%; operating income increased 57% to $218 million.

• Net leverage reduced to 2.7x, targeting ≤2.0x by Q2 FY28.

• 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 $1.536–$1.625 billion.

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

• Guidance reflects prudent planning amid macro uncertainty.