Fletcher Building Limited (ASX: FBU) on 9 July 2026 announced an upgraded earnings guidance for the 2026 financial year, alongside its fourth-quarter volume report. The New Zealand-based multinational building materials and construction company now projects its full-year FY26 earnings before interest and tax (EBIT) from continuing operations to be between $400 million and $403 million. This forecast includes approximately $52 million from surplus property sales, largely from the Laminex Cheltenham site in Australia. Excluding property sales, Fletcher Building expects continuing operations to deliver an FY26 EBIT of between $348 million and $351 million, marking an approximate 3.6% improvement from its previous guidance midpoint.
The improved outlook reflects better performance across core manufacturing and distribution divisions. Light Building Materials benefited from favourable raw material procurement, enhanced manufacturing productivity, and increased scrap usage. Australian and New Zealand Iplex businesses saw accelerated customer purchases ahead of price increases, while Heavy Building Materials reported good demand in civil and infrastructure due to settled weather. Fourth-quarter volumes showed positive trends in Light Building Products and Distribution, with PlaceMakers Frame & Truss recording higher sales. Heavy Building Materials, however, delivered a mixed performance, while the Residential division reported 220 units taken to profit in Q4, contributing to an FY26 total of 536 units, down from 666 in FY25.
Looking ahead, existing construction activity supports material demand. However, macro uncertainty and broader cost inflation are causing delays and cancellations of new commercial projects. This trend, if sustained, could adversely impact the Group’s performance in the first half of FY27. Fletcher Building will also early adopt an IFRS 18 compliant Income Statement in FY27, discontinuing “Significant Items” as a separate expense category, consistent with the historic treatment of related costs.
