James Hardie Industries PLC Louisiana-Pacific result read-through - inventory normalised; optimistic on outlook

Research evidence excerpt

J P M O R G A N

Asia Pacific Equity Research

06 August 2026

James Hardie Industries PLC

Louisiana-Pacific result read-through - inventory

normalised; optimistic on outlook

Louisiana-Pacific (LPX US, Not Covered) reported 2QFY26 results overnight. We

present our key takeaways and conference call feedback below. LPX’s optimistic

tone on the broader 2H market recovery for siding suggests JHX (1QFY27 prereported) sees continued traction into the back end of FY27.

Louisiana-Pacific key takeaways:

2Q sales decline but guidance implies growth in 3Q/4Q: 2Q sales declined

4% YoY. Despite this, LPX has seen “incremental improvement in week-overweek order intake”. This underpins the guidance that siding revenues will grow

+5% YoY in 3Q and implies 6% YoY in 4QFY26. Management noted on the

call that the full-year guide was conservative.

2Q siding volumes lower - ExpertFinish still growing MSD in FY26: Siding

unit shipments fell 11% YoY to 446mmsf (Primed vols -12%, ExpertFinish flat

+1%). Note that LPX’s mix differs from JHX’s, as LPX’s endmarket includes

30% sheds/manufactured housing (while that has improved after a very tough

1Q on destocking, vols will still be down 10-15% in FY26).

Siding pricing resilient (no additional price increase in CY26): ASP in

Siding rose 7% YoY (Primed / ExpertFinish both +7%), driven by annual price

increase and favourable sales mix. Management doesn't expect to take another

price increase in CY26 despite input cost headwinds.

FY26 siding guidance largely unchanged, is conservative: Guiding

3QFY26 siding sales +5% YoY; -1% siding sales decline in FY26 (was -2%

previously but same $ figure). Management noted on the call that they think this

is conservative given the order progression they are seeing. FY26 capex

guidance reduced $70m to $320m (growth capex cut $60m but appears mostly

OSB-related). Green Bay (ExpertFinish 50mmsf ramping now); Bath NY

(ExpertFinish 20mmsf) later in year. Additional North Branch site in

Minnesota for future expansion is also progressing.

Weather impact on mills in 2Q: 2Q was impacted by weather-related

disruptions at Swan Valley mill (Dawson Creek also impacted by unplanned

downtime for a few days).…