Fletcher Building (FBU) H1 2026 earnings summary

Executive summary

• Performance was mixed in H1 FY26, with a challenging Q1 and stronger Q2; core businesses showed resilience despite subdued markets in New Zealand and Australia.

• Disciplined capital allocation and cost reduction initiatives were implemented, with benefits expected in H2.

• Significant progress on portfolio simplification, including the divestment of the Construction division.

• Tangible progress on turnaround plan, including divisional and corporate restructuring and reduced capital commitments.

• No interim dividend was declared for 1H FY26 due to market conditions and capital structure priorities.

Financial highlights

• Revenue for the half was NZD 2.9 billion ($2,866 million), down 0.5% year-on-year.

• EBIT from continuing operations was NZD 145 million ($145 million), nearly flat year-on-year; EBIT margin at 5.1%.

• Net profit from continuing operations was NZD 45 million ($45 million), the first positive result since June 2023.

• Operating cash flow improved to NZD 156 million ($156 million), up from NZD 87 million.

• Net debt increased to NZD 1.16 billion ($1,164 million), mainly due to residential land purchases.

Outlook and guidance

• New Zealand volumes expected to remain soft, with meaningful improvement not anticipated until 2027.

• Australian volume trends in Laminex and Fletcher Insulation are encouraging, but conditions remain mixed.

• Margin compression to persist, but cost out program will help offset pressures.

• Portfolio simplification on track, with Construction divestment estimated to complete in Q1 FY27.

• Full-year CapEx now expected at NZD 290–310 million, down from previous guidance.