James Hardie completes AZEK acquisition, quadruples debt to $4.6B; integration costs sink profit 75%

Filed May 19, 2026 · Period ending March 31, 2026 · ~2 min read

Key Changes

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  Completed $4.6B AZEK acquisition July 2025, expanding from fiber cement into composite decking and outdoor living products. Debt jumped from $1.1B to $4.6B; interest expense rose $221M. Integration charges and inventory step-up totaled $255M, compressing operating margin from 16.9% to 9.3%.

  MD&A: AZEK Acquisition & Debt verify on EDGAR →
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  Net income fell 75% to $104M despite 25% revenue growth, driven by $207M acquisition expenses, $179M intangible amortization, and $48M inventory fair value charge. New Deck segment reported $18M operating loss including $137M amortization.

  MD&A: Financial Results verify on EDGAR →
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  Multiple securities class actions filed Oct 2025-Mar 2026 allege misstatements about North America operations strength and customer inventory destocking during May-Aug 2025. Company recorded no reserve, stating claims lack merit and losses not estimable.

  Legal Proceedings verify on EDGAR →