Street View: Brokerages flag ASX-listed James Hardie's weak FY26 outlook; stock down

James Hardie Industries

21/05/2025 06:32

Updates

** ASX-listed shares of fibre cement maker James Hardie JHX.AX fall 6.3% to A$36.06, lowest since May 8

** Co posts 9% y/y drop in FY25 profit, flags weaker-than-expected earnings growth for FY26

** JHX falls 28% YTD

** Stock among top losers on ASX 200 benchmark .AXJO

ANALYSTS FIND OUTLOOK CONSERVATIVE

** Jarden says co's FY26 net sales, total adj EBITDA growth estimate of "low single digits" below brokerage's forecast and consensus

** Notes outlook potentially includes margin of safety, highlights brokerage's reservations around market volume outlook

** Adds guidance continues to push out housing/repair and remodel (R&R) recovery, in line with recent commentary from peers and industry data

** Citi says FY26 guidance implies ~$1,100 mln EBITDA estimates, or ~5% below consensus

** UBS says FY26 capex guidance of ~$325 mln significantly below its estimate ($500 mln) and consensus ($490 mln), reflects soft outlook but also balance sheet priority and need for free cash flow ahead of planned AZEK AZEK.N acquisition

 (Reporting by Manasi Dasa and Sneha Kumar in Bengaluru)

 ((Manasi.DasaSundeep@thomsonreuters.com;))