Fletcher Building Ltd. reported a full-year net profit of $228 million for the 12 months ended June 30, 2026, marking a recovery from a $419 million loss in the prior year as its turnaround strategy delivered results.
Revenue from continuing operations rose 7.3% to $6.0 billion, while earnings before interest and tax before significant items increased by $85 million to $414 million, pushing the EBIT margin to 6.9% from 5.9% in FY25. Net earnings per share stood at 21.2 cents, compared with a loss of 41.4 cents in the prior period.
The company reduced its net debt to $637 million from $999 million a year earlier, improving group gearing to 15% from 22%. Operating cash flow strengthened to $715 million, while capital expenditure totaled $288 million, with FY27 capex expected to decline to about $170 million. The senior leverage ratio fell to 1.1x, well below the 3.25x covenant threshold, and interest cover stood at 5.1x against a requirement of 2.25x.
CEO Andrew Reding described the year as a period of "meaningful progress," noting that the first stage of the turnaround had concluded. He added that the next phase would focus on identifying growth within the core business and pursuing further portfolio simplification. CFO Will Wright highlighted improved cash conversion and financial flexibility following FY26’s portfolio actions.
Divisional performance showed mixed trends. Light Building Products revenue rose 10% to $2.3 billion, with EBIT up 22% to $246 million and margins expanding to 10.7%. Heavy Building Materials revenue increased 4% to $2.0 billion, with EBIT up 8% to $108 million. Distribution EBIT fell 37% to $12 million for the year but recovered in the second half to $15.8 million. Residential & Development revenue declined 13% to $478 million, with EBIT down 21% to $42 million.
Fletcher Building maintained undrawn credit lines of $1 billion and total liquidity of about $1.2 billion. The company also reported a 21% reduction in carbon emissions since FY18 and said 76% of revenue came from sustainably certified products.
