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- **Revenue Growth**: Q2 net sales $1.3B (34% YoY), organic decline 1%. Siding & Trim EBITDA $224M (29.2% margin).
- **Strategic Initiatives**: ColorPlus cost reduction pilots driving 17% volume growth in Northeast. TimberTech Advantage Rail expands composite market share.
- **Cost Efficiency**: $125M cost synergies achieved 85%; FY '27 margin recovery expected with manufacturing optimization.
- **Market Resilience**: Deck, Rail & Accessories outperforms market with mid-single-digit growth. Europe fiber gypsum EBITDA margin up 80bps.


**【CEO Opening Remarks】**
- **Leadership Updates**: Appointment of Nigel Stein as Board Chair and Ryan Lada as CFO to strengthen strategic execution. Rachel Wilson departs after 2 years of service.
- **Strategy Focus**: Emphasizes profitable growth, disciplined execution, and material conversion from wood to composite alternatives. 80% of net sales come from North America, with 40% of revenue from new construction and 60% from repair/remodel.
- **Market Outlook**: Near-term challenges in new construction (South) but stabilization in repair/remodel. Full-year guidance modestly raised due to improved channel inventory and demand visibility.

**【CFO Financial Commentary】**
- **Q2 Results**: Total net sales $1.3B (34% YoY growth), organic sales down 1%. Adjusted EBITDA $330M (25.5% margin). Siding & Trim segment EBITDA $224M (29.2% margin), down 530bps YoY due to underutilization.
- **Guidance Update**: Siding & Trim net sales $2.925B-$2.995B (mid-single-digit organic decline); Deck, Rail & Accessories net sales $780M-$800M. Full-year adjusted EBITDA $1.2B-$1.25B.
- **Cost Management**: $24M P&L benefit from cost synergies; $125M total target by FY '26. Free cash flow expected $200M+.

**【Q&A Highlights】**
- **Siding & Trim Performance**: South market softness less severe than feared; Northeast/Midwest repair/remodel growth driven by ColorPlus cost reduction pilots. Q2 ColorPlus volume up 17% in pilot regions.
- **Decking & Railing**: TimberTech outperforms market with mid-single-digit sell-through growth. New Advantage Rail product expands portfolio and share in composite category.
- **Cost Synergies**: 85% of G&A cost savings achieved; $125M target on track. Margins expected to improve in FY '27 with network optimization and Hardie Operating System adoption.
- **AZEK Integration**: Dealer feedback positive on combined Hardie/AZEK portfolio. Multiyear Boise Cascade partnership expands distribution and material conversion opportunities.


James Hardie Industries plc (JHX) Q2 2026 Earnings Call Transcript

Revenue

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Operating Expenses

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JHX

JHX fundamentals

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