Fletcher Building Limited Analysis

Overview

Fletcher Building (‘the Company’) was established in March 2001 as a stand-alone entity from the Building shares of Fletcher Challenge.

Today the Company is a leading provider of building products and solutions, operating some 25 businesses across New Zealand, Australia and the South Pacific, and employing around 15,000 people.

Fletcher Building manufactures building products, from insulation that keeps homes warm and dry, to cement and steel - the foundation of built structures the world over.

Fletcher Building’s retail businesses distribute these products to tradespeople across Australasia.

Fletcher Building also builds homes, commercial buildings and infrastructure that create communities, improve productivity and contribute to the quality of life for people living and working in cities and regions across the Company’s markets.

Fletcher Building operates through six divisions – Building Products, Distribution, Concrete, Residential and Development, Construction and Australia.

Performance

The following information was extracted from Fletcher Building Limited's Half year results, released 19 February 2025

Fletcher Building today announced its financial results for the first half of FY25.

• Revenue from continuing operations of $3,583 million, down 7% from $3,860 million in HY24
• EBIT before significant items from continuing operations of $167 million, $96 million lower than HY24
• Net Loss After Tax of $134 million, compared to Net Loss After Tax of $120 million in HY24
• $700 million capital raise applied to repay $511 million bank debt and reduce USPP by $169 million
• Cost-out programme ahead of plan

Overall, Group revenue from continuing operations was $3,583 million in HY25, down 7% versus $3,860 million in prior period. Market volumes continued to decline in the half, particularly in businesses more heavily exposed to the residential sector.

In the New Zealand Materials and Distribution divisions, volumes were down 5 to 10% half year on half year, but some businesses benefitted from major projects like the Auckland Airport expansion. In Australia, market activity continued to decline (down 15% half year on half year).