The James Hardie Industries plc (ASX: JHX) share price is in focus today after the company announced the divestiture of its European operations, including the sale of Fermacell to Holcim for €840 million (around $980 million USD).

The deal is expected to speed up debt reduction and support the return of capital to shareholders, with a new $250 million share repurchase program also unveiled.

What did James Hardie report?

• Firm has agreed to sell its European sustainable walling and flooring business Fermacell to Holcim for €840 million in cash.
• Proceeds will be used to repay about $600 million in debt and to fund a $250 million share buyback.
• The transaction is expected to be accretive to the company’s margin profile and return on invested capital (ROIC) post-completion.
• James Hardie also plans to close its European fiber cement operations, sharpening focus on its core growth markets.
• The deal is targeted to close in the first half of calendar 2027, subject to regulatory and employee procedures.

What else do investors need to know?

James Hardie’s strategic shift is part of a broader plan to align its portfolio with long-term growth opportunities and market leadership in core regions. The funds from the Fermacell sale will reduce James Hardie’s net leverage toward a target of below 2.0x by September 2027.

Additionally, the Board’s $250 million share buyback authorisation demonstrates a commitment to delivering shareholder returns. The closure of the European fiber cement business, while significant, also signals a more focused approach to investment and innovation in key growth markets such as North America and Asia-Pacific.

What did James Hardie management say?

James Hardie’s CEO, Aaron Erter, commented:

The strategic divestiture of our European operations and the intended closure of the European fiber cement business will enable us to focus on our highest growth and return opportunities. We believe this divestiture will strengthen our balance sheet, deliver compelling value for our shareholders and position the Fermacell business for long-term success under Holcim’s ownership. We are deeply grateful to our talented team members across Europe, whose expertise and hard work have made meaningful contributions to James Hardie, and we are committed to supporting impacted European fiber cement employees.

What’s next for James Hardie?

James Hardie expects the transaction to be completed in the first half of 2027, pending usual closing conditions. The focus post-sale will be on reducing debt further and potentially more capital management initiatives, including share buybacks.

The divestment and business closure will allow James Hardie to direct resources toward markets and segments with the most potential for sustainable growth and improved returns. Management has indicated a continued appetite for innovation and investment in these core markets.

James Hardie share price snapshot

It has been a strong 12 months for the James Hardie share price. During this time, the company’s shares have outperformed the S&P/ASX 200 index (ASX: XJO) with a gain of almost 50%.

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The post James Hardie sells European business, launches share buyback appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The Fisher & Paykel Healthcare share price is front and centre today after the company issued upbeat guidance, forecasting first-half revenue of NZ$1.24 billion and net profit after tax (NPAT) of NZ$280 million for the 2027 financial year.

What did Fisher & Paykel Healthcare report?

• Forecast first-half revenue of approximately NZ$1.24 billion, up 14% on the prior corresponding period
• Expected first-half NPAT of around NZ$280 million, up 24% (excluding US tariff refunds)
• Full-year operating revenue guidance: NZ$2.47 billion to $2.57 billion
• Full-year NPAT guidance: NZ$525 million to NZ$565 million (including $23 million in US IEEPA tariff refunds)
• Improvement in gross margin and operating efficiencies anticipated

What else do investors need to know?

Fisher & Paykel Healthcare saw particularly strong demand in its Hospital product group for the start of FY27, driven by adoption of its latest hardware devices and increased consumable sales stemming from changing clinical practices. The company’s positive momentum is also underpinned by continuous improvement activities that are delivering results in gross margin and operating efficiency.

The updated guidance assumes current global tariff rates will remain in place for the financial year. Fisher & Paykel Healthcare’s annual shareholders’ meeting is set for 25 August 2026, offering an opportunity for investors to engage with leadership on strategy and performance.

What did Fisher & Paykel Healthcare management say?

The company’s CEO, Lewis Gradon, said:

We have had a strong start to our first half, particularly in our Hospital product group, as a result of continued strong demand for our latest range of hardware devices and ongoing change in clinical practice driving consumable sales. It is also pleasing to see the progress we are making with our continuous improvement activities and the impact on our gross margin and other operating efficiencies.

What’s next for Fisher & Paykel Healthcare?

Looking ahead, Fisher & Paykel Healthcare plans to keep investing in innovation to support clinicians and adapt to evolving healthcare needs. Management expects continued improvement in gross margin while progressing ongoing projects to sustain the company’s growth momentum.

The current outlook remains subject to changes in global tariffs and foreign exchange conditions, but management remains confident in the strong demand outlook and ability to deliver operating efficiencies.

Fisher & Paykel Healthcare share price snapshot

The Fisher & Paykel Healthcare share price is marginally outperforming the S&P/ASX 200 index (ASX: XJO) on a 12-month basis with a gain of around 3%.

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The post Fisher & Paykel Healthcare shares: Earnings outlook upgraded for FY27 appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Telix Pharmaceuticals Ltd (ASX: TLX) shares have been strong performers in 2026.

Since the start of the year, the radiopharmaceutical company’s shares have risen a sizeable 53%.

While this still leaves its shares well short of their 2025 highs, one leading broker is calling time on the rally.

What is the broker saying?

Bell Potter notes that it recently met with the company and spoke about the prospects of its Pixclara product, which is seeking FDA approval. It commented:

Following a tough year in CY25, Telix continues to control the controllable factors and is now on the cusp of a major step forward with the pending approval of Pixclara. We recently met with the company at Bioshares (Queenstown), coming away encouraged with the prospects for Pixclara’s approval based on the company’s extensive engagement with the FDA. 

Pixclara is included on the NCCN guidelines for disease management, virtually ensuring commercial success if approved. The resubmission of the NDA for Pixclara included extensive new data which the company expects will satisfy the FDA’s efficacy concerns.

The broker has also been looking at Telix’s half-year results and was pleased with what it delivered. And while it expects the launch of a competing product to impact fourth-quarter revenue, Bell Potter still believes that its guidance is achievable. It explains:

1H26 increased by 22% to $477m, dominated by US sales of PSMA imaging agents. FY26 revenue guidance range is unchanged at $950m – $970m with the company guiding to the upper end. We expect the launch of a competitor product (TruVu – Lantheus) will impact 4Q26 revenues, nevertheless, the top end of the guidance is realistic. We do not anticipate a change in guidance irrespective of 3Q26 revenues.

Telix shares downgraded 

Despite the positives, Bell Potter believes that Telix shares are now approaching fair value.

As a result, the broker has downgraded them from a buy rating to a hold rating with a steady price target of $19.00. This implies potential upside of approximately 9% for investors from current levels.

Commenting on its investment thesis, Bell Potter said:

The pivotal moment is in a few days time for Pixclara with this event alone to dominate short term share price performance. We expect approval but without great conviction. FY26 earnings adjustments are modest. We retain our PT $19.00 and downgrade to Hold following the recent share price increase.

The post Why were Telix shares just downgraded? appeared first on The Motley Fool Australia.

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