Fletcher Building Returns to Profit With $228 Million Net Gain

Fletcher Building returned to profitability for the 2026 fiscal year, reporting a net profit of $228 million. This marks a significant turnaround from the $419 million net loss recorded in the previous year. The company's EBIT from continuing operations rose by $85 million to $414 million, while net debt decreased from $999 million to $637 million.

Managing Director and CEO Andrew Reding attributed the recovery to a strategic reset and the simplification of the company's portfolio. A central component of this shift was the $315.6 million sale of the company's construction division to VINCI Construction in January, alongside the divestment of other non-core operating units to strengthen the balance sheet.

Despite the return to profit, the board suspended dividends for the third consecutive year. The company stated that the dividend policy will be reset only after the group generates positive sustainable free cashflow and reaches the lower half of its net debt target range.

While core manufacturing divisions performed well, the company expects an uncertain economic and geopolitical backdrop to weigh on the first half of the 2027 financial year. Reding noted that a meaningful recovery in underlying volumes is not expected until the 2027 calendar year.