Fleetwood (FWD) H2 2024 earnings summary

Executive summary

• EBIT rose 95% year-over-year to $8.2 million and NPAT increased 90% to $3.8 million, with revenue up 2% to $419.9 million.

• Free cash flow reached $5.7 million, with cash conversion at 79%.

• Final fully franked dividend of 2.5 cps, full year 5.0 cps, up 138% from FY23.

• Building Solutions returned to profitability; Community Solutions delivered strong EBIT; RV Solutions faced headwinds.

• Strategic focus on modular construction, technology innovation, and leveraging national scale for growth.

Financial highlights

• Revenue grew 2% to $419.9 million; EBITDA up 17% to $24.7 million; EBIT margin improved to 1.9%.

• Net profit after tax was $3.8 million, up from $2 million last year; EPS rose to 4.0 cps from 2.2 cps.

• Free cash flow generated was $5.7 million, with cash conversion at 79%.

• CapEx increased to $12.2 million, mainly for Searipple Village upgrades.

• Closing cash position at $39.3 million, including $7.5 million restricted cash.

Outlook and guidance

• Searipple Village FY25 contracted occupancy at 65%, up from 34% in FY24.

• Building Solutions order book at $178 million, up from $127 million in June 2023, supporting high single-digit revenue growth in FY25.

• RV Solutions faces near-term softness due to cost-of-living pressures but is expected to remain profitable; medium to long-term outlook remains positive.

• Focus on commercialising Glyde technology and expanding modular construction opportunities.