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 full year results, released 20 August 2025

Fletcher Building announced today its full year financial results for FY25.

• Revenue: $7.0 billion, down 9% on FY24
• EBIT before Significant Items: $384 million, $125 million lower than FY24
• EBIT margin before Significant Items: 5.5%, compared with 6.6% in FY24
• Significant Items: $702 million total, $644 million relating to continuing operations
• Net loss: $419 million, versus $227 million in FY24
• Net cash from operating activities: $501 million, down from $588 million in FY24
• Capital and investment expenditure: $313 million, down from $420 million in FY24
• Net debt: $999 million, reduced from $1.77 billion at 30 June 2024
• Return on invested capital (ROIC): 4.5%, compared with 5.5% in FY24

Commenting on the result, Fletcher Building Managing Director & CEO Andrew Reding said: "FY25 has been one of the most demanding years in recent memory, both for Fletcher Building and the industries in which we operate. Our businesses faced tough market conditions, as well as undertaking significant internal change, and addressing legacy issues. However, significant progress has been made on our strategic plan to reposition the business for more sustainable returns going forward.

Financial summary

Revenue for the year was $7.0 billion, down 9% on FY24, reflecting softer demand across all our markets. EBIT before Significant Items of $384 million was $125 million lower than the prior year, resulting in an EBIT margin of 5.5%, compared with 6.6% in FY24. We recorded a net loss of $419 million, compared with a $227 million loss last year, primarily driven by the difficult trading environment and one-off Significant Items previously signalled to the market.

Operating cash flows remained solid at $501 million, albeit lower than the $588 million achieved in FY24, while disciplined capital management saw capital and investment expenditure reduced to $313 million from $420 million in the prior year.

Significant progress was made in strengthening our balance sheet, reducing net debt to $999 million from $1.77 billion at 30 June 2024 thanks to a successful capital raise, the divestment of Tradelink and a focus on cost control and heightened discipline with respect to capital expenditure.