(Reuters) -Fiber cement maker James Hardie forecast full-year underlying earnings below estimates on Wednesday, as elevated borrowing costs in the U.S. and tariffs dampen housing market activity and demand for its products.
James Hardie forecast adjusted operating earnings between $1.05 billion and $1.15 billion for the fiscal year 2026, below the Visible Alpha consensus of $1.23 billion. It earned $1.1 billion in fiscal 2025.
“Over the course of the summer, single-family new construction activity has been weaker than anticipated and we have adjusted our expectations to account for softer demand,” CEO Aaron Erter said in a statement.
“Homeowners are deferring large-ticket remodeling projects like re-siding, and affordability remains the key impediment to improvement in single-family new construction.”
The company’s sales in North America, accounting for nearly 75% of its topline, declined 12% to $641.8 million in the quarter ended June 30.
As a result, the Dublin-headquartered firm’s adjusted net income fell to $126.9 million in the first quarter from $177.6 million last year, missing the Visible Alpha estimate of $158.5 million.
(Reporting by Shivangi Lahiri and Sneha Kumar in Bengaluru; Editing by Maju Samuel)
