James Hardie's Australia shares stare at biggest two-day drop on weak forecast

Aug 21 (Reuters) - James Hardie's Australia-listed shares JHX.AX fell more than 11% on Thursday and were headed for their biggest two-day drop on record after the fibre cement maker forecast 2026 earnings below analyst expectations citing a weak North America market.

The stock has now declined 36% to A$28.34 over the past two days, shedding more than A$9 billion ($5.78 billion) in market value in a selloff that shows broader investor frustration with Australia-listed companies failing to meet targets.

The selloff began on Wednesday after the dual-listed company forecast adjusted operating earnings of $1.05 billion-$1.15 billion for fiscal 2026, missing a Visible Alpha consensus estimate of $1.23 billion.

The midpoint of the forecast range also barely exceeded the $1.1 billion the company earned in fiscal 2025.

Dublin-based James Hardie is grappling with a slowdown in its largest market North America, where weaker-than-expected single-family construction activity during the summer worsened demand for repair and remodelling work.

Its North American fibre cement sales fell 12% to $641.8 million in the first quarter, while adjusted net income dropped to $126.9 million from $177.6 million a year earlier.

The stock has lost nearly half its value this year, down 42.7% amid a slump in new single-family home sales in the U.S. due to higher borrowing costs and elevated inventory levels.

Meanwhile, CSL CSL.AX shares tumbled nearly 20% in the two sessions through Wednesday, after the biotech firm ditched its key margin restoration goal for its blood plasma division, joining James Hardie in disappointing Australian investors with earnings-related setbacks.

($1 = 1.5579 Australian dollars)