Fletcher Building FY26 Net Earnings NZ$228m, No Dividend

Fletcher Building (ASX:FBU) reported its annual results for the year ended 30 June 2026, with figures reported in New Zealand dollars. EBIT from continuing operations before significant items was NZ$414 million, up NZ$85 million on FY25, and the company said this finished approximately 3 per cent above the July guidance range, with the variance primarily attributable to the finalisation of employee-related provisions. Revenue from continuing operations was NZ$5,994 million, up 7.3 per cent, while total revenue was NZ$7,042 million, down 2.4 per cent. Net earnings were NZ$228 million, an improvement of NZ$647 million on the NZ$419 million net loss in FY25, and net profit from continuing operations was NZ$199 million. Group earnings per share were NZ 21.2 cents against a 41.4 cent loss, and earnings per share from continuing operations were NZ 18.5 cents against a 32.6 cent loss. The EBIT margin from continuing operations before significant items was 6.9 per cent against 5.9 per cent, or 6.2 per cent against 5.8 per cent excluding surplus property sales, and return on invested capital on the same basis was 5.3 per cent against 4.1 per cent, or 4.7 per cent excluding surplus property sales. Net cash from operating activities was NZ$715 million, up from NZ$501 million, and capital expenditure was NZ$288 million against NZ$280 million. Net debt reduced by NZ$362 million to NZ$637 million from NZ$999 million at 30 June 2025, a reduction the company attributed to divestments and property sales, with group gearing after hedging of 15 per cent at 30 June 2026 against 22 per cent a year earlier and net tangible assets per quoted equity security of NZ$3.11 against NZ$2.76. The Board has not declared a dividend for FY26 and said the dividend policy will be reset and communicated to shareholders once the group is generating positive free cashflow and is in the lower half of the net debt target range.

Across the divisions, and on figures the company states exclude corporate costs and group eliminations, Light Building Products gross revenue was NZ$2,305 million, up 10 per cent, with EBIT before significant items up 22 per cent to NZ$246 million at a 10.7 per cent margin and a return on invested capital of 7.2 per cent; Heavy Building Materials gross revenue was NZ$2,033 million, up 4 per cent, with EBIT up 8 per cent to NZ$108 million at a 5.3 per cent margin and a return on invested capital of 5.1 per cent, within which the steel businesses returned 2.2 per cent; Distribution gross revenue was NZ$1,577 million, up 3 per cent, with EBIT down 37 per cent to NZ$12 million at a 0.8 per cent margin after weak first-half trading, the division having returned to profitability in the second half with NZ$15.8 million of EBIT in the half; Residential gross revenue was NZ$478 million, down 13 per cent, with EBIT down 21 per cent to NZ$42 million; and Development land sales contributed NZ$52 million of EBIT against NZ$3 million in FY25. Managing Director and Chief Executive Officer Andrew Reding said the portfolio has been simplified with the divestment of the Construction division and other non-core operating units and the proceeds used to strengthen the balance sheet, that the core manufacturing divisions performed well in a difficult trading environment, and that the company acknowledges there is still more work to do to achieve its targeted returns on capital. On the outlook, the company said market volumes recovered gradually through the second half of FY26, with some demand likely brought forward ahead of pricing increases, that the economic, political and geopolitical backdrop remains uncertain and is expected to weigh on performance in the first half of FY27, and that a meaningful recovery in underlying volumes is not expected until calendar year 2027. FY27 capital expenditure is expected to be approximately NZ$170 million, including around NZ$40 million for OSB, with a further NZ$30 million expected to be spent on stripping and quarry land acquisitions. Moody's withdrew its credit rating at Fletcher Building's request effective 25 June 2026, and the company said it remains committed to maintaining metrics consistent with an investment-grade credit rating.