James Hardie hit with class action over performance disclosures

James Hardie is facing a class action from investors alleging it engaged in misleading conduct when disclosing its earning guidance in 2025.

The ASX-listed building products manufacturer released its Q1FY26 results on 20 August 2025 while also downgrading its FY26 guidance. Following the release, its share price declined by approximately 34%, wiping billions of dollars from its market capitalisation.

It first provided its FY26 guidance on the ASX on 21 May 2025.

The class action alleges James Hardie knew its performance was deteriorating well before 20 August 2025 but failed to update the market.

The proceedings have been brought by anyone who acquired James Hardie shares between 21 May 2025 and 19 August 2025. The investigation is being led by Slater and Gordon and has been filed in the Supreme Court of Victoria.

The proceeding is likely to allege that James Hardie engaged in misleading or deceptive conduct and breached its continuous disclosure obligations, in contravention of relevant sections of the Corporations Act 2001 and ASX listing rules.

Jamies Hardie said it considers it has at all times complied with the disclosure requirements, denies any liability and will vigorously defend the proceedings.

Last year, the firm was also under fire over a $14 billion deal to acquire US-based Azek. A deal that was done without an investor vote, leading to backlash from other major investors including AustralianSuper, UniSuper, Aware Super and HESTA.

This led the ASX to launch a review into shareholder approval requirements for mergers and takeovers of listed companies undertaking a significant transaction.