James Hardie flags that its first-quarter results will come in ahead of earlier guidance, driven by a demand rebound in key North American building products. The building materials group points to stronger-than-expected sales in its siding and trim division as the main driver, and renovation and construction activity is holding up better than anticipated.
The company now expects Q1 net sales between USD1.45 billion and USD1.48 billion, above its previous outlook of USD1.32 billion to USD1.35 billion. Adjusted EBITDA is forecast to land in a range of USD399 million to USD407 million, lifted from prior guidance of USD354 million to USD375 million. The siding and trim unit underpins this improved performance, benefiting from stronger sell-through and more resilient underlying product demand.
Management highlights that the deck, rail and accessories division is also tracking better, helped by channel inventory returning to more normal levels after earlier industry destocking. As distributors clear old stock and reorder, sell-through in these product lines improves through the quarter, adding another leg to the earnings upgrade. The combination of robust siding and trim volumes with stabilising deck and rail demand tightens James Hardie’s operational leverage, supporting the higher profit margin outlook embedded in the new EBITDA range.
