James Hardie Raises FY2027 Free Cash Flow Target Above $650 Million

James Hardie Industries plc raised its fiscal 2027 free cash flow target to more than $650 million as it pursues net leverage below 2x by fiscal Q2 2028.

The company reaffirmed its fiscal 2027 net sales guidance of $4.99 billion to $5.133 billion and adjusted EBITDA guidance of $1.45 billion to $1.534 billion. Its outlook assumes a mid-single-digit percentage decline in the blended housing market.

Second-quarter net sales from continuing operations grew 24%. Adjusted EBITDA margin rose 450 basis points to 31.8%. Sales increased 15% in Siding & Trim, 51% in Deck, Rail & Accessories and 22% in ColorPlus.

CEO and Executive Director Aaron Erter called the quarter strong against a challenging housing market backdrop. The company reported net leverage of 2.3x after repaying $111 million of term-loan debt. It is targeting net leverage below 2x by fiscal Q2 2028.

The company’s second-quarter revenue and earnings results included $1.56 billion in revenue and $0.42 in non-GAAP earnings per share.