(Reuters) -James Hardie's Australia-listed shares fell more than 9% on Thursday to post their biggest two-session drop on record, after the fibre cement maker forecast 2026 earnings below analyst expectations, citing a weak North America market.

The stock has declined nearly 35% over the past two days to A$28.98, shedding about A$9 billion ($5.78 billion) in market value in a selloff that shows broader investor frustration with Australia-listed companies failing to meet targets.

The selloff began on Wednesday after the dual-listed company forecast adjusted operating earnings of $1.05 billion-$1.15 billion for fiscal 2026, missing a Visible Alpha consensus estimate of $1.23 billion.

The midpoint of the forecast range also barely exceeded the $1.1 billion the company earned in fiscal 2025.

Dublin-based James Hardie is grappling with a slowdown in its largest market North America, where weaker-than-expected single-family construction activity during the summer worsened demand for repair and remodelling work.

Its North American fibre cement sales fell 12% to $641.8 million in the first quarter, while adjusted net income dropped to $126.9 million from $177.6 million a year earlier.

The stock has lost nearly half its value this year, down 42.2% amid a slump in new single-family home sales in the U.S. due to higher borrowing costs and elevated inventory levels.

Macquarie analysts flagged James Hardie's stretched balance sheet in a note, questioning the sustainability of its share buyback programme amid $5.1 billion in drawn debt pressuring finances.

Jarden, however, said James Hardie should see a rebound given its relationships with builders, distributors, and contractors, while also highlighting potentially lower rates and a recovering U.S. construction market.

Meanwhile, CSL shares tumbled nearly 20% in the two sessions through Wednesday, after the biotech firm ditched its key margin restoration goal for its blood plasma division, joining James Hardie in disappointing Australian investors with earnings-related setbacks.

($1 = 1.5574 Australian dollars)

(Reporting by Nichiket Sunil in Bengaluru; Editing by Subhranshu Sahu and Sherry Jacob-Phillips)