James Hardie Industries plc (JHX.AX): Strong siding result; should we focus on DR&A and RoW instead?

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James Hardie Industries plc (JHX.AX): Strong siding result; should we focus on DR&A and RoW instead?

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23 Jul 2026 09:12:22 ET │ 18 pages

James Hardie Industries plc (JHX.AX)

Strong siding result; should we focus on DR&A and RoW instead?

CITI'S TAKE

Overall a strong Siding and Trim beat drove headlines. Implied volumes

were +10-12% in a declining market, however material destocking in the pcp

blurred underlying trends/strength. Despite this, we’re incrementally more Buy

optimistic looking forward. Specifically regarding potential revenue Short-Term View: Upside

synergies in Decking and implied RoW strength. We expect these to drive

Price (23 Jul 26 16:00) A$36.99guidance upgrades at the upcoming result and remain Buy rated.

Target price A$42.60↑

Strong Siding result; but what about RoW? — JHX pre-reported 1Q27 EBITDA of from A$36.50

$399-407, or ~9% ahead of VA cons at the mid-point. Compositionally S&T was Expected share price return 15.2%~10% ahead, however we note there is also a material non-Siding/Decking implied

upgrade. While we think some of this is attributable to lower stock comp/better cost Expected dividend yield 0.0%

synergies. Given the material increase in group revenue, we estimate this implies Expected total return 15.2%

potential rest of world strength as well.

Market Cap A$11,772M

Is there upside to revenue synergies/DR&A? — Interestingly despite competitor US$8,237M

distribution changes, DR&A was largely in line. As a result, we estimate the benefit

of this to be fully recognized in the coming quarters. While limited disclosure to date,

we estimate this could represent a $100+ revenue opportunity. As a result it appears

JHX’s is on track with revenue synergies and there may be potential upside to FY27 Price Performance

$125M target.