Updates with more detail on results, outlook

May 20 (Reuters) - James Hardie Industries JHX.AX posted lower-than-expected annual profit on Wednesday, as unfavourable weather disrupted construction activity across its key markets while inflationary and affordability pressures continued to hurt housing activity.

The weaker full-year profit underscores the pressure facing building materials companies due to elevated mortgage rates, house prices, and stretched affordability weighing on new construction and repair-and-remodel activity.

Elevated energy prices due to the U.S.-Israeli war with Iran are also weighing on household budgets, prompting houseowners to defer large-ticket renovation projects.

Group net sales for the year jumped 25% to $4.84 billion, aided by contributions from AZEK Exteriors, driving sales at its key Siding & Trim division up 3%. Europe sales increased 13%, while Australia and New Zealand remained flat.

However, net sales fell short of Visible Alpha expectations of $4.85 billion hurt by lower exterior and interior product volumes, weather-related volume headwinds, and affordability pressures.

As a result, the Dublin-based firm reported an adjusted net income of $595.7 million for the year ended March 31, compared with $644.3 million a year ago and slightly below the Visible Alpha consensus estimate of $597.7 million.

James Hardie, one of the world's top fibre cement makers, forecast 2027 net sales between $5.25 billion and $5.41 billion, and adjusted operating earnings between $1.45 billion and $1.50 billion.