Going James Hardie on the defensive

James Hardie has marginally increased its FY26 earnings guidance, saying it is taking actions to mitigated a "mixed macro backdrop".

In the third quarter, the building materials manufacturer has reported a 30% increase in net sales, which comes down to 1% in organic net sales due to the company using its inventory.

CEO Aaron Erter has declared that James Hardie is in the process of optimising manufacturing, and aligning costs to what is described as a stabilising pace of demand.

Mr Erter argues this will better position James Hardie to be profitable if and when conditions improve.

The CEO has also defended the acquisition of the US-based AZEK, which cost Chairwoman Anne Lloyd her job. He said customers have been responding positively to a differentiated offer.

AZEK, an outdoor products manufacturer, had been acquired without a shareholder vote, and his now fully part of James Hardie.