Fletcher Building Industries Limited Analysis

Overview

The company was listed under the name Fletcher Building Finance Ltd ("FBF") on 20 December 2002.

Fletcher Building Finance Ltd is a wholly owned subsidiary of Fletcher Building Ltd, and is the issuer of capital notes which are guaranteed by Fletcher Building on an unsecured subordinated basis.

On 27 August 2010 it was announced that the company will no longer lend to companies within the Fletcher Building group. FBF is regarded as a non-bank deposit taker by the Reserve Bank of New Zealand. As such, it is subject to the ongoing requirements of The Reserve Bank of New Zealand Act 1989. Recent amendments to the Act mean that FBF is no longer a preferred funding vehicle for the Fletcher Building group.

With effect from 27 August 2010 the company will become a holding company, and will purchase 20% of the shares in Fletcher Building Holdings Limited ("FBHL"). FBHL is a corporate holding company and currently holds most of the shares in Fletcher Building's New Zealand subsidiaries.

On 01 October 2010 the company changed its name to Fletcher Building Industries Limited ("FBI"), to reflect that it is no longer a funder or lender to the Fletcher Building group, but is instead an investor in Fletcher Building's New Zealand assets.

On 28 March 2011 Fletcher Building Industries ("FBI") and Fletcher Building Ltd ("FBU") consolidated their capital notes programmes and FBU's obligations were transferred to FBI effective from 28 March 2011.

Performance

The following information was extracted from Fletcher Building Industries Limited's Half year results, released 18 February 2026

Fletcher Building Industries Limited (the Company) is a wholly-owned subsidiary of Fletcher Building Limited (FBU), and is the issuer of capital notes, which are guaranteed by FBU on an unsecured subordinated basis.

Financial results - Period ended 31 December 2025

Net losses after tax - $4.2 million

Net assets - $649.6 million

The Company reported a net loss of $4.2 million for the half year ended 31 December 2025, compared with a net profit of $17.1 million in the prior comparative period. The decline in profit compared with the prior comparative period primarily reflects lower earnings from its associate. This was driven in HY26 by the recognition of additional provisions and impairments within the Fletcher Building Construction division, following the decision to divest certain construction businesses and exit remaining construction activities. The Company holds a 20 per cent interest in Fletcher Building Holdings New Zealand Limited, which owns the Group’s New Zealand operating subsidiaries, and this investment is equity accounted.

The financial performance of the Company should be considered in conjunction with the financial statements of the Fletcher Building Group, including the Group’s assessment of the preparation of the financial statements as a going concern.

The Company has operated in compliance with the terms of the Trust Deed under which the capital notes were issued.