United States, September 1, 2025
News Summary
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.
Housing slowdown sends James Hardie shares tumbling nearly 35%
A leading maker of high-end home siding saw its stock plunge nearly 35% after reporting a weak first quarter. The company posted a 28% decline in profit and a 9% drop in net sales year over year. Market data show this was the company’s largest one-day percentage fall since the 1970s.
Why the drop matters now
Management pointed to a soft U.S. housing market and broad reluctance from homeowners to spend on large renovation projects. Builders and contractors are seeing a slowdown in single-family construction, especially in the southern U.S., while high interest rates are keeping many buyers and renovators on the sidelines. The company described conversations with dealers and contractors that centered on uncertainty and weaker demand, and it said homeowners are delaying major projects that typically need loans or home equity lines of credit.
Retailers and the wider market
Major home-improvement retailers reported similar customer behavior but did not see the same severe market reaction. Both major chain operators noted that higher borrowing costs are making customers hesitate before starting large remodels that would usually require financing. Those retailers also highlighted that a big share of their product lines are sourced domestically, reducing near-term exposure to trade-related price moves, while one noted a larger share of U.S.-sourced goods compared with several years ago.
What this means for siding and installers
The fall in demand affects manufacturers, distributors and installers across many regions. For homeowners considering exterior work, this environment can mean longer lead times for big projects, more cautious bids from contractors and a slower pace of new single-family starts in markets hit hardest by affordability pressures.
Stucco remains a top siding choice and evolving product lines
Stucco remains one of the most popular siding materials and is still widely used more than a century after it first became common. Roughly one in four newly built single-family houses features stucco, making it the second-most used siding type after vinyl. Traditional stucco is a cement-like mix applied in multiple hand-troweled coats to a base of house wrap and lath. Newer systems — including acrylic, insulated and crack-suppression options — add choices for texture, color and durability and can reduce some of the material’s historic drawbacks. Professionals advise that stucco installation is typically not a DIY job; it often needs a team and specific skills for proper application.
Seismic shake in East Tennessee felt across several states
A magnitude 4.1 earthquake struck eastern Tennessee in the morning and was widely felt across neighboring states. The epicenter was located about 21 kilometers southeast of a small Tennessee town. Preliminary reports initially gave a lower magnitude before it was adjusted upward. More than 30,000 people submitted felt reports within the first hour, reflecting how seismic waves travel efficiently across the eastern U.S. Officials say the local seismic zone is one of the most active in the Southeast; while large damaging quakes are rare, small events can be felt over long distances. Forecast tools indicated a modest chance of an aftershock of similar size in the coming week.
Exterior and curb-appeal trends for southern homes
In the South, homeowners and designers are focused on charm and function for exterior updates. Popular moves include rethinking rooflines, adding shutters and dormers, and cleaning up landscapes to create a strong first impression. Designers recommend using no more than three visual features on a facade, choosing durable earthy materials such as brick, stone or wood accents, and considering a bold or classic front-door color to make a statement. Outdoor lighting, properly scaled fixtures, refreshed porches and small front-yard seating areas are among the practical upgrades that boost value and appeal. Unpainted brick paired with dark accents is returning as a favored look.
Private equity deal in the Southeast exterior services market
A regional exterior contractor that installs siding, roofing, windows and gutters has changed majority ownership. A middle-market investor sold its controlling stake to another private equity buyer but will keep a minority position and continue to support growth plans. The company’s existing chief executive and management team will remain in place. The contractor serves builders and homeowners across several Southeastern states and says recent ownership support helped expand market reach and add technology and management resources.
FAQ
Why did the siding maker’s stock fall so sharply?
The company reported a sizable drop in profit and sales for the quarter, and said demand is softer because of a weak housing market and homeowners delaying big renovation projects amid high interest rates.
Are big-box home-improvement chains seeing the same problem?
Large retailers reported customers postponing large remodeling jobs that would likely need financing, but their stocks did not fall as sharply and they highlighted a strong share of domestically sourced products.
Is stucco a good choice for a home exterior?
Stucco is a long-standing and popular option. It is commonly used in the South and West and offers a range of textures and new systems that improve insulation and reduce cracking. Proper installation by experienced crews is important.
Was anyone hurt in the Tennessee quake and should homeowners worry about aftershocks?
Reports showed the quake was widely felt but did not indicate major damage in the initial summaries. Forecasts put the short-term chance of a similar-size aftershock at a low single-digit percentage.
What does the sale of the exterior contractor mean for customers?
The new majority owner plans to support growth while the previous investor stays involved. Management will remain in place, suggesting customer service and operations are expected to continue without major changes in the near term.
Key features at a glance
| Topic | Key facts | Potential impact |
|---|---|---|
| Stock drop | Nearly 35% one-day fall; profit down 28%; sales down 9% | Pressure on supplier earnings and installer demand |
| Market drivers | High interest rates; weaker single-family starts; homeowners delaying big jobs | Slower renovation and new-build activity |
| Stucco | Used on ~25% of new single-family homes; new systems improve durability | Continued demand for specialized installers |
| Seismic event | Magnitude 4.1 quake in eastern Tennessee felt across several states | Short-term aftershock risk low but present; shows regional seismic activity |
| Private equity deal | Majority stake sale of a Southeast exterior contractor; management stays | Continued regional service with potential growth investments |
Deeper Dive: News & Info About This Topic
Additional Resources
- Family Handyman: Stucco Guide
- Wikipedia: Stucco
- WYFF4: Southeast Earthquake Coverage
- Encyclopedia Britannica: Eastern Tennessee seismic zone
- Southern Living: Curb Appeal Trends
- Google Search: Curb appeal Southern homes
- PR Newswire: Halifax Group sells majority stake in Southern Exteriors
- Google Scholar: Private equity regional installer
- PE Professional: Halifax Group deal coverage
- Google News: Halifax Group Southern Exteriors
Author: Construction NY News
NEW YORK STAFF WRITER The NEW YORK STAFF WRITER represents the experienced team at constructionnynews.com, your go-to source for actionable local news and information in New York and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the New York Build Expo, infrastructure breakthroughs, and cutting-edge construction technology showcases. Our coverage extends to key organizations like the Associated General Contractors of New York State and the Building Trades Employers' Association, plus leading businesses in construction and real estate that power the local economy such as Turner Construction Company and CMiC Global. As part of the broader network, including constructioncanews.com, constructiontxnews.com, and constructionflnews.com, we provide comprehensive, credible insights into the dynamic construction landscape across multiple states.
