Fletcher Building FY26 slides: turnaround delivers profit, debt falls

Fletcher Building Limited, a New Zealand and Australia-based building materials manufacturer, reported its FY26 results on August 19, 2026, marking a turnaround from previous years' losses. The company's shares rose 5.52% to $3.25 following the announcement. The restructuring program completed in FY26 resulted in the first positive net earnings since FY23, with earnings per share reaching 21.2 cents.

Revenue from continuing operations increased 7.3% to $6.0 billion, driven by improved volumes across core divisions despite weakness in the New Zealand residential construction market. EBIT improved to $414 million, and the EBIT margin expanded to 6.9%. Net earnings climbed to $228 million, marking the first profit since FY23. Cash flow strengthened to $715 million, and capital expenditure totaled $288 million, primarily for large projects including the new OSB plant.

The company's divisions showed varying performance, with Light Building Products leading growth. Strategic progress included the divestment of the Construction division and several other businesses, portfolio optimization, and central cost reductions. Net debt fell to $637 million, improving leverage to mid-target range.