James Hardie Industries (JHX) Stock Plunges Amid Inventory “Destocking” Revelation -- Hagens Berman

September 04, 2025 at 09:30 AM EDT

On August 20, 2025, James Hardie Industries (NYSE: JHX) shares crashed by 34% after the company disclosed significant issues with its North America business, its largest segment.

This sudden and massive decline has prompted an investigation by Hagens Berman into whether the company may have misled investors about its sales practices and the sustainability of its business model.

The firm urges investors in James Hardie who suffered significant losses to contact the firm now.

Visit: www.hbsslaw.com/investor-fraud/jhx

Contact the Firm Now: JHX@hbsslaw.com

844-916-0895

Investigation into Potentially Misleading Assurances

The investigation is centered on the contrast between James Hardie's previous assurances and its recent performance. In May 2025, the company had told investors that its business model would allow it to “structurally grow through expansions and contractions.”

This claim came into question on August 19, 2025, when the company reported dismal Q1 2026 results.

James Hardie admitted that its North America sales volumes had declined by 12% year-over-year due to customers “destocking” their inventory from April to May. The company’s reduced outlook for the future was tied to these high inventory levels, potentially indicating that the earlier sales figures may have been artificially inflated by pushing products into the distribution channel.

Hagens Berman’s Investigation on Behalf of Investors

Hagens Berman is now investigating when and to what extent James Hardie’s management knew about this “inventory destocking” and whether they properly disclosed this information to investors.

“Our focus is on whether the company may have misled investors by presenting a facade of sustained demand, when in reality, they may have been overloading their channel partners with excess product,” said Reed Kathrein, the Hagens Berman partner leading the investigation.

If you invested in James Hardie and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »

If you’d like more information and answers to frequently asked questions about the James Hardie investigation, read more »

Whistleblowers: Persons with non-public information regarding James Hardie should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email JHX@hbsslaw.com.

About Hagens Berman

Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.