Fleetwood Limited reported a 44% rise in underlying return on capital employed to 44.1% for the fiscal year ended June 30, 2026, as strong cash generation offset restructuring costs and asset disposals. The company posted underlying EBIT of $35.6 million, excluding $29.6 million in non-recurring restructuring expenses, while free cash flow increased 33% to $35.9 million.
Total shareholder returns amounted to $21.6 million, comprising $17.4 million in dividends and a $4.2 million share buyback that cancelled 2.5 million shares. The final dividend was set at 9.5 cents per share, fully franked, bringing the full-year payout to 19.0 cents. Fleetwood’s shares rose 5.3% to $2.58 following the results presentation.
The Community Solutions segment delivered record EBIT of $50.0 million, up 28% from the prior year, driven by a 22% revenue increase to $93.8 million and a 53.3% EBIT margin. Occupancy at Searipple Village in Karratha reached 96%, while Osprey Village in Port Hedland operated at full capacity with a waiting list. The segment’s growth reflects sustained demand for transient worker accommodation in Western Australia’s Pilbara region, where planned investments exceeding $30 billion are expected to create a shortfall of at least 1,500 rooms through FY27.
Fleetwood also announced the $20 million acquisition of Red Dog Village, a 2,169-room facility in Karratha scheduled to close on January 1, 2027. The deal is projected to contribute $10 million to $20 million in annualized EBIT, potentially boosting Community Solutions earnings by roughly 30% at the midpoint. Combined with Searipple Village, the two assets will provide 3,419 rooms, representing about 45% of Karratha’s total transient accommodation supply.
The Building Solutions segment reported an underlying EBIT loss of $8.7 million, reflecting a $15.4 million restructuring charge tied to the closure of the Smithfield, NSW factory. Revenue declined 9% to $323.5 million, though the order book expanded to $156 million as of June 2026, with over $200 million in pending tenders. Management expects the factory closure to reduce annual costs by $8.0 million to $9.0 million starting in Q2 FY27, with a $11.9 million cash outflow anticipated in Q1 FY27 to complete the process. Guidance calls for revenue growth of more than 5% in FY27, with breakeven to slight profitability targeted in the first half and stronger performance in the second half.
The RV Solutions segment posted an underlying EBIT of $1.7 million, an improvement from a $2.8 million loss in FY25, despite a 21% revenue decline to $55.9 million. The segment incurred $4.8 million in restructuring costs in H1 FY26 and expects an additional $9.2 million in H2 FY27 to fully exit operations. Northern RV was sold in February 2026 for $4.8 million, and the Camec divestment, announced in July 2026, is expected to generate $9.5 million. Total cash inflows from RV divestments are projected to reach $18.3 million, including $4.0 million in tax assets realized across FY27 and FY28.
Fleetwood ended FY26 with $61.5 million in net cash and no debt, while capital employed fell 29% to $80.7 million. The company’s underlying ROCE improved to 44.1% from 32.9% in FY25, reflecting both operational efficiency and strategic asset sales.
