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James Hardie (JHX) is sharply higher today after issuing upside Q2 (Sep) guidance this morning ahead of its official earnings report in November. The company guided Q2 revenue of $1.29-1.30 bln and EPS of $0.26-0.27. The Q2 guidance is a nice rebound for the exterior building products maker, following a steep sell-off after its Q1 (Jun) miss earlier in August.

• The Q2 revenue guidance implies 34-35 % yr/yr revenue growth, which would mark a return to growth following 4 consecutive quarters of declines.
• The company noted that its siding & trim business sales exceeded expectations, with organic net sales falling low single digits yr/yr. Distributors and dealers also reduced inventory less than anticipated.
• Recall JHX completed its acquisition of AZEK in July. The integration and synergy remain on track, with AZEK growing mid-single digits in both net sales and sell-through for Deck, Rail & Accessories. Management highlighted opportunities to gain shelf space and cross-sell siding through AZEK's dealer network.
• While single-family construction remains challenging, the improved outlook highlights the value of AZEK and suggests that repair and remodel demand may be more resilient than expected.

Briefing.com Analyst Insight

The large upside in guidance is encouraging and reflects steady performance across both siding & trim and AZEK. Channel trends appear more stable than earlier in the year, helped by more balanced inventory levels. While the broader housing market remains mixed, early synergy progress and increased visibility into siding & trim bode well for JHX in FY26.