James Hardie to Close California and South Carolina Plants, Projecting $25 Million in Annual Savings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 16 2026
0mins
Source: NASDAQ.COM
- Manufacturing Optimization: James Hardie announced the closure of its Fontana, California, and Summerville, South Carolina manufacturing facilities within the next 60 days, which represent approximately 6% of its year-to-date North American volume, optimizing its production footprint by absorbing operations into other facilities.
- Cost Savings Projection: The company expects to achieve annualized cost savings of approximately $25 million starting in the first quarter of fiscal year 2027, driven by reduced fixed costs and improved utilization across the remaining manufacturing network, thereby enhancing financial health.
- Estimated One-Time Charges: The anticipated one-time pre-tax charges related to the closures are estimated to be between $40 million and $44 million, primarily consisting of employee severance, transition-related costs, and asset impairments, with these charges expected to be recognized mainly in the fourth quarter of fiscal year 2026, split evenly between cash and non-cash items.
- Guidance Reaffirmation: In connection with this announcement, James Hardie reaffirmed its guidance for the third quarter and full year of fiscal year 2026, demonstrating the company's confidence in future performance despite the short-term challenges posed by structural adjustments.
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Analyst Views on JHX
Wall Street analysts forecast JHX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for JHX is 24.50 USD with a low forecast of 21.00 USD and a high forecast of 30.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
5 Buy
1 Hold
0 Sell
Strong Buy
Current: 23.970
Low
21.00
Averages
24.50
High
30.00
Current: 23.970
Low
21.00
Averages
24.50
High
30.00
About JHX
James Hardie Industries plc is an Ireland-based company, which is engaged in providing exterior home and outdoor living solutions, with a portfolio that includes fiber cement, fiber gypsum, and composite and PVC decking and railing products. The Company's segments include North America Fiber Cement, Asia Pacific Fiber Cement and Europe Building Products. The Company's North America Fiber Cement segment manufactures fiber cement interior linings, exterior siding products and related accessories in the United States and these products are sold in the United States and Canada. The Company's Asia Pacific Fiber Cement segment includes fiber cement products manufactured in Australia and sold in Australia and New Zealand. Its Europe Building Products segment includes fiber gypsum products manufactured in Europe, and fiber cement products manufactured in the United States that are sold in Europe. The Company’s brands include Hardie, TimberTech, AZEK Exteriors, Versatex, fermacell and StruXure.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
James Hardie to Release Q3 FY2026 Financial Results
- Earnings Release Schedule: James Hardie is set to announce its Q3 FY2026 financial results after U.S. market close on February 10 and before the Australian market opens on February 11, reflecting the company's commitment to transparency and investor communication.
- Conference Call Discussion: Following the earnings release, a conference call will be hosted by CEO Aaron Erter and CFO Ryan Lada, aimed at providing an in-depth analysis of the financial results and engaging with investors to bolster confidence.
- Global Market Presence: James Hardie markets its exterior home and outdoor living solutions across North America, Europe, Australia, and New Zealand, with a product portfolio that includes fiber cement and PVC decking, showcasing its strong competitive position in the global market.
- Brand Influence: The company boasts several well-known brands, such as Hardie® and TimberTech®, which are recognized for their beauty, durability, and climate resilience, further solidifying its leadership in the building materials industry.
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James Hardie to Release Q3 Financial Results
- Earnings Release Schedule: James Hardie is set to announce its Q3 financial results for the fiscal year 2026 after the U.S. market closes on February 10, 2026, which may influence investor expectations regarding the company's future performance.
- Conference Call Discussion: Following the earnings release, the company will host a conference call led by CEO Aaron Erter and CFO Ryan Lada, aimed at providing in-depth analysis of the financial results and addressing investor inquiries.
- Webcast Information: The conference call will be webcast live on James Hardie's Investor Relations page, ensuring that global investors can access the latest updates in real-time, thereby enhancing transparency.
- Global Market Presence: James Hardie's products are marketed and sold across North America, Europe, Australia, and New Zealand, showcasing its significant global footprint in the building materials industry.
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