Fletcher Building (FBU) H2 2026 earnings summary

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.

• Delivered 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 now within the target range at $637m, 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 $6.0b year-over-year.

• EBIT before significant items rose by $85m to $414m; EBIT margin before significant items increased to 6.9% from 5.9%.

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

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

• Operating cash flows increased to $715m from $214m.

Outlook and guidance

• No meaningful recovery in underlying volumes expected until calendar year 2027.

• Operating environment remains volatile due to economic, political, and geopolitical uncertainties, including upcoming elections.

• Cost base is now lower, providing insulation during downturns and leverage for future demand recovery.

• Capital expenditure for FY27 expected to decrease to approximately $170m.