F4Q26 Recap: A Path Back to Organic Growth in Siding; Solid Quarter

研报英文原文证据摘录

F4Q26 Recap: A Path Back to Organic Growth in Siding; Solid Quarter

DR&A will

see some de-stock headwinds contained to F1Q (~$20 mil) as JHX manages channel inventories EPS NM NA -5% -10%

down given the uncertain outlook. That said, sell-through have been stable & still in the ~LSD-MSD

% range for the FY, with mgmt reiterating the ~500-700 bps market outperformance target. 2027 ($) Q1 Q2 Q3 Q4 FY

EPS 0.29 0.27 0.26 0.35 1.17

Executing on commercial initiatives. Integration of Azek & executing on commercial synergies PREV 0.32 0.25 0.32 1.16

remains JHX's strategic focus. Mgmt called out early traction with expanded channel relationships

& increased product attachment (trim + siding). JHX is on track to hit $125 mil run-rate revenue

synergies exiting FY27, implying ~$40-50 mil in year impact. JHX also outlined progress on the

ColorPlus initiative, and training contractors to narrow the cost gap with vinyl. The pilot program in

Midwest launched last spring show ~DD% YOY sales improvement, with 5 more regions ramping

this year. With Nichiha shutting down its GA fiber cement facility, JHX believes there's an opportunity

to pick up share (50+ bps uplift on vols) & its lapping large 1Q de-stock (~$75 mil).

Offsetting cost inflation. JHX is facing $80-100 mil of inflation in FY27 (raws, freight, energy), but

is confident in fully offsetting through pricing, procurement savings, productivity, & cost synergies.

Pricing alone (~3%) should get JHX to its org growth target. On cost synergies, JHX exited FY26

at an ~$80 mil run-rate & is expecting $35-40 mil incremental realization in FY27, alongside $25

mil from plant rationalization & HOS efficiencies. The guide embeds EBITDA expansion (~150bps),

driven by pricing, cost savings, and modest vol recovery.