Rewrites paragraph 1, adds analyst comments in paragraph 7 & 11, share moves in 6 and background in 12-13

By Nikita Maria Jino and Roshan Thomas

Feb 11 (Reuters) - Fibre cement maker James Hardie Industries JHX.AX JHA1.F raised its annual earnings forecast on Wednesday after beating analyst estimates for the third quarter, sending its Sydney-listed shares soaring 14%.

The Dublin-based company reported a 10% rise in inorganic sales at its Siding and Trim unit, with solid gains also seen across other segments, including Deck, Rail and Accessories.

That helped the company post a quarterly adjusted net income of $142.2 million, ahead of a Visible Alpha estimate of $130.1 million but below last year's $153.6 million.

It raised its annual adjusted operating earnings forecast to $1.23 billion-$1.26 billion from $1.20 billion-$1.25 billion previously expected, with the midpoint broadly in line with the Visible Alpha consensus of $1.23 billion.

James Hardie's Australia-listed shares surged as much as 14% to A$37.89, their highest level since mid-August last year and marking the best intraday rally since early August 2023.

The stock was among the top gainers on the broader ASX 200 benchmark index .AXJO, which was up 1.5%, as of 0225 GMT.

"A better than expected result from James Hardie due to the legacy U.S. Siding and Trim business," said Brook Campbell-Crawford, head of cyclical industrials research at Barrenjoey.

The Siding and Trim business, which makes fibre‑cement building products, reported net sales of $788.3 million, 10% higher on an inorganic basis, driven by contribution from decking and exteriors firm AZEK Exteriors.

On an organic basis, the division's net sales however fell 2% due to lower volumes, reflecting softer housing demand.

"For Siding and Trim, market conditions remain challenged, consistent with our prior expectations," said CFO Ryan Lada, adding that channel inventories were expected to remain at seasonally normal levels for the remainder of fiscal 2026.

"The fourth-quarter guidance looks conservative again and importantly the management is expecting organic growth in fiscal 2027 and will come back with formal guidance in May," said Crawford.

James Hardie bought U.S.-based AZEK for $8.75 billion last year amid analyst concerns of overpaying for exposure to the U.S. housing market still hit by high costs and affordability pressures.

The deal, struck at a 37% premium, saw billions of dollars of James Hardie's market value wiped out last year. The stock plunged more than 38% in 2025 with investors criticising at being denied an opportunity to vote on the deal and dumping its chair Anne Lloyd and two other directors.

(Reporting by Nikita Maria Jino and Shruti Agarwal in Bengaluru, additional reporting by Roshan Thomas; Editing by Krishna Chandra Eluri, Rashmi Aich and Subhranshu Sahu)

((Shruti.Agarwal@thomsonreuters.com;))