Chief executive Andrew Reding expected market conditions to remain challenging in the near term.
Photo: Supplied / Fletcher Building
Fletcher Building has posted a smaller half-year loss as the company continues to clean up its long-list of legacy issues, while business remains challenging.
Key numbers for the six months ended December compared with a year ago:
- Net loss $11m vs $134m loss
- Revenue $3.37b vs $3.58b
- Revenue from continuing operations $2.87b vs $2.85b
- Profit from continuing operations $45m vs $88m loss
- Significant items $7m vs $177m
- No dividend
Chief executive Andrew Reding said Fletcher was making progress in difficult trading conditions.
“The first half of [financial year 2026] was another demanding period for the building industry, with subdued markets across New Zealand and Australia,” he said.
“Conditions differed between a particularly weak first quarter and a more stable second quarter,” Reding said. “In that environment, our core manufacturing businesses held up well, supported by disciplined cost control and better operational execution.”
Fletcher’s interim result last year was affected by $177 million in one-off items related to its legacy projects, compared to $7m in one-offs in the latest period.
Revenue from continuing operations was flat on the prior year, with lower New Zealand volumes and ongoing competitive pressure, which was offset by stable performances in its core manufacturing businesses.
Last month, Fletcher announced the sale of its construction division, as the company worked to simplify the business after years of pressure from delayed projects and cost overruns.
“The sale of Construction is a major step in reshaping Fletcher Building into a simpler, more focused building products manufacturing and distribution group,” Reding said.
“Combined with the cost and capital discipline we have put in place, it positions the Group well to benefit as market conditions recover.”
Reding expected market conditions to remain challenging in the near term.
“In New Zealand, residential and civil demand is likely to remain relatively subdued through [financial year 2026], with a more meaningful recovery not anticipated until calendar year 2027,” he said.
“In Australia, early signs of stabilisation are emerging in parts of the portfolio, although conditions remain uneven.”
