James Hardie Industries (JHX.AU) shares plummeted 5.07% in Wednesday's trading session following the release of its fiscal year 2025 results and outlook for 2026. The world's largest fibre cement maker reported a 9% decline in annual profit, citing weaker performance in its Asia Pacific segment and a modest dip in North American sales.

The company's annual adjusted net income fell to $644.3 million from $707.5 million a year ago, although it slightly exceeded analysts' expectations. James Hardie's Q4 sales came in at $972 million, down from $1 billion in the same period last year, with adjusted earnings per share dropping to $0.36 from $0.40 year-over-year.

Investors were particularly concerned about the company's outlook for fiscal year 2026. James Hardie projected a decline in market volumes for its North American segment, which accounts for about three-quarters of its net sales. The company expects only low single-digit growth in total adjusted EBITDA for FY26, citing "broader macroeconomic uncertainty" that could impact home construction costs and consumer sentiment. This cautious outlook, combined with the weaker-than-expected results, likely contributed to the sharp sell-off in the stock.