Fletcher Building LtdPrivate▼ Negative
Demandrelevance
Rising fuel costs and cost inflation causing delays and cancellations of new projects, weighing on performance.
Fletcher Building expects its fiscal 2026 EBIT to be between NZ$375 million and NZ$380 million, excluding discontinued items and including roughly NZ$40 million of property-related earnings. The company said rising fuel costs and broader cost inflation are causing delays and some cancellations of new projects, a trend that if sustained is likely to weigh on performance in the first half of fiscal 2027. Following the settlement of the Construction division divestment and other property sales, net debt is forecast to be marginally above the middle of its NZ$400 million to NZ$900 million target range as of 30 June 2026. Fletcher has notified Moody’s that it wishes to withdraw its credit rating while continuing to target investment-grade credit metrics. Six previously announced transactions in the second half of fiscal 2026 are expected to contribute approximately NZ$450 million of net cash proceeds for debt reduction, with three already settled, two settling before fiscal year-end, and the remaining one expected to settle in the first half of fiscal 2027.
Rising fuel costs and cost inflation causing delays and cancellations of new projects, weighing on performance.