Fletcher Building has returned to profit in FY26, with the company reporting stronger earnings and cash flow as its core manufacturing divisions performed well despite a difficult trading environment.
The building products group recorded EBIT from continuing operations before Significant Items of $414 million, up $85 million from FY25, while net earnings reached $228 million, compared with a $419 million loss in the previous financial year.
Earnings per share improved to 21.2 cents, from a loss of 41.4 cents in FY25. Net cash from operating activities also increased to $715 million, up from $501 million, while net debt fell to $637 million from $999 million at 30 June 2025.
Managing Director and CEO Andrew Reding said the results reflected improvements made to the company’s business model and balance sheet.
“Fletcher Building is significantly more resilient than it was twelve months ago,” Reding said. “We have moved at pace to improve our business model, and the strategic reset we set out last year is now starting to deliver tangible results.”
The company said its portfolio had been simplified following the divestment of its Construction division and other non-core operating units, with proceeds used to strengthen its balance sheet.
Reding said Fletcher Building’s core manufacturing divisions had “performed well in a difficult trading environment”, while a focus on operational and capital discipline contributed to the improvement in operating cash flow.
Despite the improved result, the company said further work was required to achieve its targeted returns on capital. EBIT from continuing operations before Significant Items was approximately 3% above the July guidance range, with Fletcher Building attributing the variance primarily to the finalisation of employee-related provisions.
The board has not declared a dividend for FY26. Fletcher Building said its dividend policy would be reset and communicated once the group is generating positive free cash flow and has moved into the lower half of its net debt target range.
The company said market volumes recovered gradually during the second half of FY26, although economic, political and geopolitical uncertainty is expected to weigh on performance in the first half of FY27. A meaningful recovery in underlying volumes is not expected until calendar year 2027.
“Our priorities remain clear: maintain cost and capital discipline, complete the remaining legacy workstreams, and position the Group to capture upside once demand improves,” Reding said.
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