James Hardie Shares Surge on Strong Q2 Earnings Outlook Despite Housing Market Challenges

James Hardie Industries PLC (ASX:JHX) shares rallied nearly 10% to A$33.43 on Wednesday, marking their highest level since mid-August, after the global building materials manufacturer released impressive preliminary results for its fiscal second quarter. The surge stood out as the broader ASX 200 index slipped 0.4%, reflecting strong investor confidence in the company’s resilience amid a sluggish housing market.

According to the preliminary report, James Hardie expects net sales between $1.29 billion and $1.30 billion for the September quarter, up from $961 million a year earlier. Adjusted core earnings are projected in the range of $326 million to $331 million, a notable increase from $263 million last year. Adjusted net income is anticipated between $151 million and $157 million, remaining relatively steady year-over-year.

The world’s leading maker of fiber cement products attributed its earnings strength to robust siding and trim sales, which exceeded expectations. Additionally, the recent acquisition of AZEK is expected to further enhance performance and profitability in the coming quarters. These results suggest the company’s strategic investments and operational efficiency are paying off, even as broader construction activity remains subdued.

James Hardie acknowledged that the construction sector continues to face headwinds from higher living costs and cautious consumer spending. Earlier this year, its shares had tumbled following warnings about weakening demand in its North American market. However, the latest figures have helped ease investor concerns and reaffirmed optimism about the company’s growth trajectory.

The firm said it plans to release its full second-quarter results and updated annual guidance next month. With this strong performance, James Hardie appears well-positioned to navigate a challenging housing environment while sustaining long-term growth.