Contractor pickup and stacked siding panels on a quiet suburban street as exterior projects pause.
United States, September 1, 2025
Shares of a leading siding manufacturer plunged nearly 35% after the company reported weaker fiscal first-quarter results, with net profit down about 28% and sales falling roughly 9%. Management attributed the decline to softer U.S. housing demand and homeowners deferring large exterior projects amid higher interest rates. Major home improvement retailers signaled similar consumer caution. Industry notes highlight that stucco remains a popular siding choice, a magnitude 4.1 quake rattled parts of the Southeast, and a private equity deal reshaped regional installer ownership, underscoring varied pressures across the exterior services market.
James Hardie, the maker of high-end home siding, saw its stock drop almost 35% in a single session after reporting weak quarterly results tied to a cooling U.S. housing market. The company reported falling sales and profit in its fiscal first quarter and pointed to softer demand from both builders and homeowners reluctant to take on large, loan-backed projects.
The one-day decline was the company’s largest since the early 1970s. Fiscal first-quarter profit fell by 28% year over year, while net sales dropped by 9% compared with the same quarter a year earlier. Management flagged reduced activity in single-family construction, particularly across the U.S. South, and said many homeowners are deferring major remodeling work that would normally require loans or home equity lines of credit.
Executives linked the weak quarter to broadly higher borrowing costs that have weighed on home sales, housing starts and large remodeling projects. Homeowners are reportedly pausing or delaying re-siding and other expensive exterior work because financing and affordability remain tight. The company also described conversations with contractors and retailers as dominated by uncertainty and caution.
Large home-improvement retailers signaled similar customer behavior. Two major national retailers said customers remain hesitant about large remodeling jobs that typically need debt financing. Both retailers noted they face cost pressures from tariffs but emphasized that a large share of their merchandise is sourced domestically, which limits exposure to import-related price changes.
Retailers reported that a majority of their products are now sourced inside the United States, with a smaller portion coming from China. One retailer noted that this supply mix is a marked change from several years ago and helps to reduce the impact of trade policy changes on everyday product availability and cost.
Stucco continues to be a popular exterior finish, especially in the South and West. It is a cement-like material applied in several thin layers and offers a range of textures from smooth to rough. About one in four newly built single-family homes use stucco, making it the second-most common siding after vinyl. Newer stucco systems, including acrylic and insulated options, aim to reduce cracking and broaden where stucco can be used. Installing stucco usually requires multiple crew members and several application steps; experts caution it is not typically a do-it-yourself task.
A magnitude 4.1 earthquake near eastern Tennessee was widely felt across neighboring states. The quake’s epicenter was located southeast of a small Tennessee town and initial public reports numbered in the tens of thousands within the first hour. Because seismic waves travel farther in the eastern U.S., the event was felt across a broad area. The official aftershock outlook gave a modest chance of similar-sized aftershocks over the next week. The eastern Tennessee seismic zone is one of the more active earthquake areas in the Southeast, though significant damage is uncommon.
Design experts say homeowners in the South are focusing on exterior charm to set the tone for interiors. Popular moves include reimagined rooflines, properly sized shutters, mixed exterior materials like brick and stone, and upgraded front doors with striking colors. Natural landscaping with native plants, porch refreshes, and well-chosen exterior lighting are also in demand. Unpainted brick paired with dark accents and small front-yard seating areas are among the trends noted for lasting curb appeal.
A private-equity firm has sold a majority stake in a regional exterior installation company to another investment firm while retaining a smaller ownership position. Management will remain in place. The company provides siding, roofing, gutters, windows and related exterior services across several Southeastern states and has pursued growth through market expansion and technology investments. Advisors and legal counsel were engaged as part of the transaction. Specific deal terms were not disclosed.
The stock drop followed weaker quarterly sales and profit, with management pointing to softer demand in single-family construction and homeowners delaying large remodeling projects because of higher borrowing costs and affordability concerns.
Consumers appear to be pausing major, loan-dependent projects. Smaller updates and routine maintenance may continue, but large-ticket jobs requiring financing are being deferred by many homeowners.
Stucco remains widely used, especially in certain regions, and newer systems address some traditional limitations. Installation is typically a multi-step, professional process rather than a DIY job.
The magnitude 4.1 quake was widely felt but the region has not been known for large, damaging earthquakes. Officials noted a small chance of similar aftershocks in the following week.
For homeowners in the Southeast, the transaction may mean continued or expanded local service options from a growing regional installer that focuses on siding, roofing and related exterior work.
| Topic | What to know |
|---|---|
| Stock move | James Hardie shares fell nearly 35% after a weak fiscal first quarter. |
| Financials | Profit down ~28% year over year; net sales down ~9% year over year. |
| Housing impact | High interest rates slowing single-family starts and large remodeling projects. |
| Retail signals | Major home-improvement retailers see customers defer big projects; many goods now sourced domestically. |
| Stucco | Common siding option; applied in multiple coats; newer systems improve durability and insulation. |
| Earthquake | Magnitude 4.1 in East Tennessee, widely felt across nearby states; low but present aftershock risk. |
| Private-equity deal | Majority stake in a Southeast exterior installer sold; management stays in place; terms not disclosed. |
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