Fletcher Building (FBU) Investor presentation summary

Financial performance and market conditions

• Revenue for FY25 was $7.0b, down 9% from FY24, with EBIT at $384m and a net loss of $419m, reflecting tough macro conditions and subdued demand across sectors.

• Net cash from operating activities was $501m, capex and investments totaled $313m, and net debt was reduced to $999m from $1,766m in FY24.

• ROIC declined to 4.5% from 5.5% in FY24, and EBIT margin decreased to 5.5% from 6.6%.

• Building merchant sales and product volumes tracked below previous years, with ongoing weak demand and margin pressure across business units.

• FY26 market conditions remain challenging, prompting further cost-out initiatives and efficiency improvements.

Strategic actions and turnaround plan

• $200m in gross cost savings were implemented in FY25, with an additional $130m in cost-out initiatives announced for FY26.

• Corporate restructure reduced divisions from six to five, and several business units were divested or shut down to streamline operations.

• Net debt reduction and a pause on dividends until the net debt target of $400m–$900m is achieved.

• Medium-term strategy focuses on manufacturing and distribution, empowering business unit leaders, and maintaining urgency in execution.

• Portfolio simplification and decentralization of corporate functions are ongoing, with a focus on capital allocation and operational efficiency.

Operational highlights and legacy risk management

• Firth and Golden Bay increased market share, Winstone Aggregates began on-site concrete recycling, and Winstone Wallboards exceeded recovery yield targets.

• Fletcher Insulation launched 16 new products, and Waipapa Pine reached full utilization.

• Significant progress was made on legacy risks, including completion of major construction projects and settlements of outstanding claims.

• Client handover for NZICC expected in 2025, and remediation efforts for WA pipes are tracking to estimates.