James Hardie Industries (ASX:JHX) logged robust third-quarter results for fiscal year 2026, headlined by a 30% rise in net sales to US$1.2 billion.
Despite a challenging macroeconomic environment characterised by cooling demand, the exterior solution giant demonstrated remarkable resilience through strategic pricing and the integration of its AZEK acquisition.
While total sales jumped, the report highlighted a "mixed macro backdrop."
Organic net sales grew by a modest 1%, and the core Siding & Trim segment saw organic sales dip by 2%.
However, the company offset volume softness through operational efficiency.
Adjusted EBITDA reached US$330 million, supported by a notable 500 basis point sequential expansion in Siding & Trim margins.
CEO Aaron Erter attributed this profitability to the "Hardie Operating System" and a favourable price/mix, noting that the company is proactively aligning its cost structure with a slower market pace.
The outdoor living segment provided a bright spot, with Deck, Rail & Accessories net sales increasing by 2% and sell-through hitting mid-single digits.
Management remains particularly bullish on its integration with AZEK, confirming that they have already surpassed FY26 cost synergy goals and are firmly on track to hit their US$125 million long-term synergy target.