Investors were unimpressed, unloading shares which tanked 30 per cent to $31.18 in early trade, their lowest price since April 2023.
Net sales slipped nine per cent to $US900 million ($A1.4 billion) to $US992 million ($A1.5 billion), prompting the fibre cement maker to trim its forward earnings guidance, with the previously forecast low single-digits of growth now the optimistic side of expectations.
"We continue to navigate a dynamic near-term environment while also remaining focused on scaling the organisation and investing where we see returns to drive long-term profitable growth," chief financial officer Rachel Wilson said.
"Overall, while market demand remains challenged, the ANZ (Australia and New Zealand) team is focused on finding further manufacturing efficiencies and driving Hardie Operating System savings to underpin the segment's consistent profitability."
The first quarter result came in largely as expected, due to lower customer growth expectations and uncertainty that grew in April and May, as tariffs and high US borrowing costs weakened home building activity in North America.
"We remain committed to outperforming market demand over the long term and are employing strategies to deliver on this commitment, notwithstanding near-term conditions," Â chief executive Aaron Erter said.
"We are resolute in our strategy that is grounded in being home-owner focused, customer and contractor driven."
James Hardie's takeover of decking company Azek, which prompted another shareholder sell-off six months earlier, was another source of optimism for the CEO.
"Azek again exceeded guidance, sustaining top line momentum and impressive profitability," Mr Erter said.
"We have greatly expanded our overall material conversion opportunity, establishing a comprehensive offering of exterior home and outdoor living solutions that will drive sustained above-market growth over the long-term."
