Fleetwood (FWD) H2 2024 earnings summary

Executive summary

• EBIT rose 95% to AUD 8.2 million and NPAT increased 90% to AUD 3.8 million year-over-year, with revenue up 2% to AUD 419.9 million, driven by Building Solutions' turnaround and strong Community Solutions occupancy.

• Free cash flow reached AUD 5.7 million, with a closing cash position of AUD 39.3 million and cash conversion at 79%.

• Final fully franked dividend of AUD 0.025 per share, totaling AUD 0.05 for FY 2024, up 138% from FY23.

• Safety performance improved for the third consecutive year, and employee turnover halved over two years.

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

Financial highlights

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

• NPAT margin increased to 0.9%; EPS rose to 4.0 cps from 2.2 cps.

• Cash position at AUD 39.3 million, including AUD 7.5 million restricted cash; net cash decreased by AUD 7.2 million.

• CapEx of AUD 12.2 million, mainly for Searipple Village refurbishments; lease repayments rose due to additional sites.

• Free cash flow of AUD 5.7 million and cash conversion at 79%.

Outlook and guidance

• Searipple Village contracted occupancy for FY 2025 is 65%, up from 34% last year, with potential for further increases.

• Building Solutions order book stands at AUD 178 million, up from AUD 127 million, supporting high single-digit revenue growth in FY 2025.

• RV Solutions outlook remains soft due to cost of living pressures, but profitability is expected to be maintained.

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

• CapEx is expected to return to normalized levels in FY 2025, with no major projects planned.