James Hardie Industries plc Q3 FY2026 earnings call

• Acknowledged employee efforts and thanked them. - Discussed solid quarter results, exceeding guidance, and progress across business. - Focused on reaccelerating organic growth in fiber cement, expanding margins, and executing manufacturing optimization. - Highlighted combination with AZAC building momentum and generating commercial opportunities. - Outlined strategies for Siding and Trim segment including focus on repair and remodel, new home penetration, product innovation, and installation techniques. - Spoke about strong performance of DeckRail and Accessories, driven by material conversion, new product development, and channel expansion. - Detailed integration with AZEK, progress on cost and commercial synergies, and positive customer feedback on combined offering

Siding and trim: Net sales up 10% including AZEK acquisition; organic net sales down 2% due to lower volumes but higher average price; adjusted EBITDA $269M with 34.1% margin. Deck rail and accessories: Net sales up 2%, sell through mid single digits, adjusted EBITDA $49M with 25.1% margin. Australia and New Zealand: Net sales up 7% in both currencies, adjusted EBITDA up 4% with 32.6% margin. Europe: Net sales up 13%, EBITDA margin up 240 basis points to 12.7%. Full year outlook: Siding and trim net sales guidance raised to $2.953B - $2.998B, adjusted EBITDA to $939M - $962M. Deck rail and accessories net sales guidance $787M - $800M, adjusted EBITDA $219M - $224M. Total company adjusted EBITDA guidance $1.232B - $1.263B

• FY '27 expectation to return to organic revenue growth and adjusted EBITDA margin expansion. - Siding and Trim segment expects to return to organic growth with strategies including focus on repair and remodel, new home penetration, product innovation, and installation techniques. - DRNA's TimberTech expected to continue outgrowing market. - Full year '26 guidance updated for net sales and adjusted EBITDA across segments. - Aim to return to net debt below two times within two years post close

• Q: Regional variation in siding sales and near term expectations, A: New construction soft in many regions, repair and remodel stabilizing, inventory seasonally appropriate. - Q: Cost inflation in siding inputs, A: Modest inflation expected on fiber cement side. - Q: Price increases acceptance and spring selling season, A: Price increases effective, accepted well, spring selling season expected. - Q: Commercial synergies in FY '26, A: Many start to hit P&L in FY '27, confident in $125M revenue synergy target. - Q: 4Q guide, margins, A: Volume comp from inventory build, margin dilution from increased marketing activity. - Q: Large distributor commitments and pipeline, A: Confident in delivering against exit rate, customers welcome consolidation. - Q: Working capital and inventory, A: Inventory phased with rollout of commercial synergies, network redesign benefits delayed. - Q: Fiber cement pricing contribution and drivers, A: Price and mix contributed, new products and market factors driving. - Q: R&R installation methods and go to market strategy, A: Investment in salesforce, dedicated teams, training, and product innovation. - Q: FY '27 conviction for Siding and Trim, A: Confidence from sales team structure, commercial synergies, and initiatives if market doesn't worsen. - Q: Decking placement with big box and railing penetration, A: Progress in expanding retail presence, no major announcements yet. - Q: Raw materials contribution to margin and fourth quarter outlook, A: Raw materials contributed to margin, inflation to carry into 4Q. - Q: Install techniques and contractor motivation, A: Innovation in installation techniques, rollout plan, and support from product collection. - Q: Marketing investments in 4Q, A: Related to trade shows, sales meeting, and contractor events. - Q: FY '27 growth conviction and synergies, A: Aim for 4% PDG growth with synergies on top. - Q: AZEK EBITDA growth change in 4Q, A: Seasonal slowdown and S&A investment impact