Fletcher Building (FBU) H2 2025 earnings summary

Executive summary

• FY 2025 was challenging, with revenue down 9% to $7.0 billion and a net loss of $419 million, driven by $702 million in significant items and weak market conditions.

• EBIT before significant items fell to $384 million, $125 million lower than FY24.

• Substantial progress was made on balance sheet reset, reducing net debt to $999 million after a capital raise and divestments.

• The company executed urgent restructuring, portfolio simplification, and a decentralised structure, with a turnaround plan and operational improvements.

• Structural changes and divestments are underway, including a strategic review of the Residential and Development Division.

Financial highlights

• Revenue for FY 2025 was $7.0 billion, down 9% year-over-year, with the largest decline in Residential and Development (down 30%).

• EBIT margin before significant items was 5.5%, down from 6.6% in FY24.

• Net loss of $419 million, including $702 million in significant items (impairments, restructuring, legacy provisions).

• Operating cash flow was $501 million, down from $588 million in FY24.

• CapEx and investments totaled $313 million, down from $420 million in FY24.

Outlook and guidance

• Expectation of prolonged subdued demand in New Zealand residential and commercial construction through FY 2026.

• Australian market shows mixed signals with no clear recovery yet; outlook remains cautious.

• Cost reduction initiatives and portfolio simplification to continue, with full benefits likely realized in FY 2027.

• Dividend remains suspended until net debt is in the lower half of the $400–$900 million target range.