Shares of James Hardie Industries PLC (JHX) tumbled 6.72% in pre-market trading on Wednesday, as investors reacted negatively to the company's disappointing fourth-quarter results and cautious outlook for fiscal year 2026. The building materials supplier's gloomy forecast, particularly for its North American market, has sparked concerns about future growth prospects.

In its latest earnings report, James Hardie revealed that its Q4 adjusted earnings per share came in at $0.36, meeting analyst expectations. However, the company's revenue of $971.50 million fell short of the anticipated $994.80 million. More worryingly, management's updated FY 2026 outlook caught investors off guard, projecting market volume contractions in North America, including a fourth consecutive year of declines in large-ticket repair and remodel activity.

Adding to investor concerns, James Hardie's net debt was approximately $80 million higher than consensus expectations, as noted by Barrenjoey analyst Brook Campbell-Crawford. This increased debt level is particularly significant as the company prepares to acquire U.S. rival AZEK in a cash-and-stock deal worth $8.75 billion. In response to the earnings report, Truist Securities adjusted its price target on James Hardie to $35 from $45, while maintaining a Buy rating on the shares.