James Hardie's Australia shares post biggest two-day drop on weak forecast
Aug 21 (Reuters) - James Hardie's Australia-listed shares JHX.AX fell more than 9% on Thursday to post their biggest two-session drop on record, after the fibre cement maker forecast 2026 earnings below analyst expectations, citing a weak North America market.
The stock has declined nearly 35% over the past two days to A$28.98, shedding about 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 42.2% amid a slump in new single-family home sales in the U.S. due to higher borrowing costs and elevated inventory levels.
Macquarie analysts flagged James Hardie's stretched balance sheet in a note, questioning the sustainability of its share buyback programme amid $5.1 billion in drawn debt pressuring finances.
Jarden, however, said James Hardie should see a rebound given its relationships with builders, distributors, and contractors, while also highlighting potentially lower rates and a recovering U.S. construction market.
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 = 1.5574 Australian dollars)
Related Articles
Don't Miss Walmart's Aug 21 Earnings: $0.73 EPS Forecast, Grocery + E-Com Dual Engines – Unlimited Upside Potential?
TradingKey - Walmart's stock price has shown an overall fluctuating upward trend since the release of its first-quarter earnings report, benefiting from investors' favoritism towards Walmart as a defensive stock, as well as expectations for its stable growth in e-commerce and grocery businesses.
Powell's Jackson Hole Speech: For U.S. Stocks, Hawk or Dove Signal Could Be a Lose-Lose?
TradingKey - As U.S. inflation and labor market data show signs of rebalancing, Treasury traders and Wall Street banks have largely priced in a rate cut at the September FOMC meeting — the first of 2025. Yet both a more dovish-than-expected tone and a potential surprise hawkish signal from Fed Chair
Eurozone Q2 GDP Commentary: Will the Euro's Upward Momentum Persist?
TradingKey - On 14 August 2025, Eurostat published Q2 GDP figures, revealing a drop in the Eurozone's quarter-on-quarter growth from 0.6% in the first quarter to 0.1%. Consequently, annual growth eased from 1.5% to 1.4%. The slowdown primarily stems from the diminishing boost from European...
Ethereum Price Prediction: Will ETH Extend the Rally? What’s the Future Trend?
Ethereum's impressive 2025 rally has been largely fueled by inflows from spot ETFs and a surge in institutional holdings, signaling growing confidence in its role as a core asset in the crypto market. However, to officially confirm the start of a new bull cycle, ETH must break above the critical $4,
Bitcoin Price Forecast: Trends and Investment Outlook from 2025 to 2030
From $0.01 in 2009 to $120,000+ in 2025, Bitcoin has evolved from obscurity to a globally recognized financial asset. While institutions and governments increasingly embrace it, investors must remain vigilant against volatility, security risks, and scams.
