Fletcher Building reports a reduced half-year loss amid ongoing efforts to resolve its legacy issues, even as market conditions stay tough.
For the six months ended in December, Fletcher Building recorded a net loss of $11 million, a sharp improvement from the $134 million loss a year earlier. Revenue fell to $3.37 billion from $3.58 billion, while revenue from continuing operations edged up slightly to $2.87 billion from $2.85 billion. Profit from continuing operations came in at $45 million, reversing an $88 million loss from the previous period.
Significant items totalled $7 million, down significantly from $177 million.
“The first half of [financial year 2026] was another demanding period for the building industry, with subdued markets across New Zealand and Australia,” chief executive Andrew Reding said.
“Conditions differed between a particularly weak first quarter and a more stable second quarter.”
“In that environment, our core manufacturing businesses held up well, supported by disciplined cost control and better operational execution.”
Last month, Fletcher Building announced the sale of its construction division to streamline operations after years of strain 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.”
“Combined with the cost and capital discipline we have put in place, it positions the Group well to benefit as market conditions recover.”
Reding anticipates ongoing challenging market conditions in the near term.
He said in New Zealand, residential and civil demand is expected to stay subdued through financial year 2026, with a stronger recovery not likely until calendar year 2027.
“In Australia, early signs of stabilisation are emerging in parts of the portfolio, although conditions remain uneven.”