James Hardie, a leading manufacturer of fibre cement siding and backerboard solutions, has revised its market outlook due to weakening demand in North American repair and remodel, and new construction sectors. CEO Aaron Erter noted widespread uncertainty among customers and contractor partners, with homeowners postponing major remodelling projects. James Hardie primarily focuses on providing durable and aesthetically pleasing building materials to both residential and commercial markets. Their products are used in a variety of applications, including siding, trim, and interior lining.
According to Erter, affordability issues continue to hinder progress in single-family new construction. Home builders are reportedly moderating their demand expectations and reducing housing starts to better align inventory with slower traffic and sales. The company had already factored in a mid-single-digit decline in end-market demand in its full-year guidance back in May, largely driven by anticipated further declines in the repair and remodel segment.
However, recent single-family new construction activity has underperformed expectations, leading to further adjustments. The company is now also anticipating further inventory adjustments by channel partners in the latter half of the calendar year. As a result, James Hardie is conservatively projecting that benefits from recent homebuilder exclusivity wins and new product launches will be more significantly realised in fiscal year 2027 and beyond, rather than in the second half of fiscal year 2026 as initially forecast.
