James Hardie to Optimize Manufacturing Footprint

About this update from James Hardie Industries Plc.

Initiatives Expected to Generate Annualized Cost Savings of Approximately $25 Million Beginning in Q1 Fiscal Year 2027 Company Reaffirms Guidance for the Third Quarter and Full Year of Fiscal Year 2026 SYDNEY & CHICAGO, January 15, 2026--(BUSINESS WIRE)--James Hardie Industries plc (NYSE / ASX: JHX) ("James Hardie" or the "Company"), a leading provider of exterior home and outdoor living solutions, today announced that it is taking steps to optimize its manufacturing footprint as part of the Company’s ongoing commitment to operational excellence through the Hardie™ Operating System ("HOS"). As part of these actions: Aaron Erter, Chief Executive Officer, said, "During the past several years, James Hardie has made significant investments in modernizing our manufacturing facilities to improve efficiency, support our material conversion opportunities, and to better serve our customers. Following a comprehensive review of our manufacturing network, we have decided to transfer more production volume to our modern, advanced plants. These actions will further improve our cost structure, increase productivity, and reinforce the Hardie Operating System, while ensuring we have the capacity needed to support our growth initiatives. Our focus remains on driving sustainable growth and value creation over the long term." Erter continued, "The decision to close our plants in Fontana, California, and Summerville, South Carolina was not taken lightly, and I want to thank the teams at these sites for their years of dedication and hard work. We are grateful for their many contributions, which have been significant in shaping James Hardie." Financial Impact and FY26 Guidance The Company expects the site closures and optimization initiatives to generate annualized cost savings of approximately $25 million beginning in the first quarter of fiscal year 2027. These cost savings will be driven by reduced fixed costs and improved utilization across the remaining manufacturing network, and are incremental to any cost synergy savings related to the recent AZEK acquisition. The Company expects to incur one-time pre-tax charges of approximately $40 million to $44 million, in connection with the site closures and optimization actions. These charges are expected to consist primarily of employee severance, benefits and transition-relat...

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