Fletcher Building (FBU) H1 2026 earnings summary

Executive summary

• Performance was mixed, with a challenging Q1 followed by stronger Q2, and core businesses showing resilience despite subdued New Zealand and Australian markets.

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

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

• Operating cash flow improved to $156 million, up from $87 million in the prior period, driven by working capital management.

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

Financial highlights

• Revenue from continuing operations was $2,866 million (NZD 2.9 billion), down 0.5% year-on-year.

• EBIT before Significant Items was $145 million, nearly flat year-on-year; EBIT margin at 5.1%.

• Net profit from continuing operations was $45 million, compared to a loss of $88 million in the prior year.

• Cash flows from operating activities improved to $156 million from $87 million.

• Net debt increased to $1,164 million, mainly due to residential land purchases.

Outlook and guidance

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

• Australian markets show early signs of stabilisation, with positive trends in Laminex and Fletcher Insulation, but conditions remain mixed.

• Margin compression to persist, but cost out initiatives and portfolio simplification are expected to support future performance.

• Construction divestment expected to complete in Q1 FY27; Residential & Development review ongoing.

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