Why are James Hardie shares jumping 9% on Thursday?

James Hardie Industries PLC (ASX: JHX) shares are storming higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) building materials company closed yesterday trading for $34.85. In earlier morning trade on Thursday, shares jumped to $37.89, up 8.7%. After likely profit-taking, shares are currently trading at $36.87 each, up 5.8%.

For some context, the ASX 200 is up 1% at this same time.

Today’s boost continues the strong upward trend for James Hardie shares since the recent lows in mid-May. Indeed, since market close on 18 May, the ASX 200 stock has gained an impressive 41.7%.

Here’s what’s stoking investor interest today.

James Hardie shares surge on Q1 guidance beat

James Hardie shares are outperforming today following the release of the company’s preliminary first-quarter FY 2027 results. ASX investors can expect to see the final audited results on 7 August.

As for the preliminary results, the company reported consolidated net sales of US$1.449 billion to US$1.475 billion. That result is being well received by the market today, as it is materially above Q1 sales guidance of US$1.315 billion to US$1.354 billion.

Earnings also topped expectations, with earnings before interest, taxes, depreciation and amortisation (EBITDA) ranging from US$399 million to US$407 million. That compares favourably to Q1 EBITDA guidance of US$354 million to US$375 million.

James Hardie’s Siding & Trim division performed strongly, achieving Q1 net sales of US$846 million to US$860 million. That also exceeds first-quarter sales guidance for the division of US$758 million to US$781 million.

In other core financial metrics, James Hardie reported preliminary consolidated GAAP net income for the quarter in the range of US$102 million to US$104 million.

What did management say?

Commenting on the results lifting James Hardie shares today, CEO Aaron Erter said, “Our first quarter results are expected to exceed our prior guidance, primarily as a result of better-than-expected sales in Siding & Trim”.

Erter continued:

Siding & Trim net sales reflected strong sell through and underlying demand for our products. Our performance in Deck, Rail & Accessories was driven by channel inventory normalization and sell-through that improved throughout the quarter.

First-quarter Deck, Rail & Accessories net sales came in at US$296 million to US$305 million.

Erter concluded:

We believe our performance reflects our team’s execution and growth above market, rather than a meaningful improvement in the overall US housing market. That said, we are encouraged by the positive traction from our initiatives to grow our fibre cement business, continued conversion in decking and the positive contribution from sales and cost synergies.

The post Why are James Hardie shares jumping 9% on Thursday? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.