Shares of James Hardie Industries PLC (JHX) tumbled 5.38% in trading on Wednesday, following the company's release of its fourth-quarter earnings report and fiscal year 2026 outlook. The building materials supplier's cautious forecast for the North American market has sparked investor concerns about future growth prospects.

In its earnings call, James Hardie management revealed expectations for market volumes in North America to contract in fiscal year 2026, including a fourth consecutive year of declines in large-ticket repair and remodel activity. This outlook caught investors off guard, particularly as North America represents approximately three-quarters of James Hardie's net sales.

While the company reported quarterly adjusted earnings of $0.36 per share, in line with analyst expectations, and achieved its fiscal year 2025 guidance metrics, the focus shifted to future performance. James Hardie is projecting low single-digit net sales growth in North America for FY2026, despite anticipating a mid-single-digit decline in market volumes. This conservative outlook, coupled with ongoing economic uncertainties, appears to have triggered the sell-off.

The stock's decline also reflects investor reaction to other challenges highlighted in the earnings report, including raw material cost inflation and the need for continued cost control measures to maintain profitability. As James Hardie navigates these headwinds, the market will be closely watching the company's ability to outperform in challenging conditions and deliver on its material conversion strategy in the coming fiscal year.