Fletcher Building (FBU) investor relations material

Executive summary

• Completed the first stage of a turnaround with portfolio simplification, cost reduction, and performance discipline, including divestment of the Construction Division and other non-core assets.

• Achieved steady performance despite challenging macroeconomic conditions, with revenue up 7.3% year-over-year to $6.0b and EBIT before significant items rising to $414m, a $85m increase from FY25.

• Net earnings reached $228m, reversing a net loss of $419m in FY25, and operating cash flow improved to $715m.

• Strengthened the balance sheet, with net debt reduced to $637m from $999m, supported by divestments and improved cash flows.

• Group ROIC improved to 5.3% from 4.1% at FY25, though some divisions remain below target.

Financial highlights

• Revenue from continuing operations increased 7.3% to just under NZD 6 billion year-over-year; EBIT before significant items rose by NZD 85 million to NZD 414 million.

• Net earnings were NZD 228 million, compared to a loss of NZD 419 million last year; earnings per share turned positive at NZD 21.2.

• Net cash from operating activities increased to NZD 715 million from NZD 214 million.

• Net debt reduced to NZD 637 million from NZD 999 million, driven by improved cash flows and divestments.

• Capital expenditure was NZD 288 million, with major projects like the Laminex OSB plant nearing completion.

Outlook and guidance

• Operating environment remains volatile; no meaningful recovery in underlying volumes expected until calendar year 2027.

• Market volumes recovered gradually in 2H FY26, but economic and geopolitical uncertainty is expected to weigh on 1H FY27 performance.

• FY27 capital expenditure expected to decrease to ~$170m, with a continued focus on disciplined capital allocation.

• Cautious on providing specific first-half FY27 guidance due to ongoing volatility and election-related uncertainty.

• Expect stronger free cash flows as major capital projects complete and CapEx reduces.