Fletcher Building has announced a net loss of $NZ419 million for the past financial year, a significant widening from the $NZ227 million loss reported the previous year. The company, which is involved in construction, home building and development, and the manufacturing and distribution of building materials, faced headwinds from weaker demand and one-off charges that weighed heavily on its overall performance. Fletcher Building operates across New Zealand and Australia.
Revenue for the period fell by 9 per cent to $NZ7 billion. Earnings before interest and taxes (EBIT) before significant items also decreased, dropping $NZ125 million to $NZ384 million. This resulted in a reduced EBIT margin, which slipped to 5.5 per cent from the 6.6 per cent recorded in the prior financial year.
The company stated it is currently implementing a strategy focused on simplifying its operational structure. This includes ongoing reviews of its Construction and Residential & Development businesses. Fletcher Building anticipates that any benefits resulting from these strategic changes will likely materialise from the 2027 financial year onwards.
Looking ahead, Fletcher Building anticipates that New Zealand volumes will remain subdued throughout the 2026 financial year. The outlook for its Australian operations is currently mixed. The company has emphasised that its primary focus remains on stringent cost control measures and the simplification of its business portfolio.
