Fletcher Building Quarterly Volume Report for Q1 FY26
13/10/2025 08:30 NZDT, MKTUPDTEP
As part of its ongoing commitment to transparency and enhanced visibility for shareholders, Fletcher Building provides its quarterly update of key product sales volumes for the first quarter of the 2026 financial year (Q1 FY26).
Andrew Reding, Managing Director and Chief Executive Officer, said: “The quarterly volumes show that there were further declines in trading volumes and ongoing pressure on margins amid subdued market conditions during the first quarter. The principal drivers for the softer performance were continued weak demand across key markets and heightened competitive activity, particularly in the New Zealand market.”
“This has resulted in a further tough quarter for the business. The market remains highly competitive, as demand stays low, particularly across the residential and infrastructure sectors.”
Divisional Volumes
• Light Building Products volumes were generally below prior corresponding period (pcp), but slightly higher compared to Q4 FY25. Positive volume growth was seen in Comfortech ( 3.8% pcp) and Iplex NZ ( 14.1% pcp). In Australia, while volumes were down substantially on pcp, both Laminex AU and Iplex AU saw positive performance vs Q4 FY25. Across the Division, margins have been relatively stable with production efficiencies (e.g. Winstone Wallboards) and cost management offsetting soft volumes.
• Heavy Building Materials has experienced some pronounced volume contractions. Winstone Aggregates volumes fell 4.1% versus Q4 FY25 and 6.3% versus pcp, reflecting weaker roading and project activity. Both Firth and Golden Bay have so far experienced volumes broadly in line with last year. Steel volumes were marginally up on Q4 FY25 (and higher vs pcp), but margins have compressed further in the quarter.
• Within the Distribution Division, PlaceMakers Frame & Truss volumes were flat to marginally higher on pcp; however, margins contracted owing to competitive trading conditions.
• Residential took 88 residential and apartment units to profit in Q1 FY26, compared to 90 in Q1 FY25. Overheads continue to be tightly managed to mitigate the impact of historically low sales volumes amid elevated market inventories (currently at 11-year highs). The Division expects potential improvement in sentiment following recent OCR adjustments.
Cost-out and Efficiency Programme
Andrew Reding said, “Given the continued deterioration in market conditions, we continue to carefully examine our cost base with a further cost-out programme targeting c.NZ$100m in annualised savings. Approximately NZ$50m in benefits are expected to be realised in the second half of FY26, with full annualised savings to be achieved in FY27.”
“This cost-out programme is focused primarily on back-office operations and efficiencies, while seeking to maintain front-line operational capabilities, and will partially offset the earnings impact of market conditions.”
Market
Fletcher Building anticipates market conditions to remain challenging throughout the remainder of the financial year, with continued uncertainty on the timing of recovery in the residential sector. However, the recent significant OCR reductions should support greater liquidity in the New Zealand housing market and there are some signs of steadying or improving market conditions in Australia. In the meantime, management remains focused on cash preservation, cost discipline, and maintaining a strong balance sheet to support the business through the downturn, and to position the Group strongly for improved operating leverage when markets improve.
The specific volume information for Q1 FY26 is available in the attached table.
ENDS
Authorised for release to the market by Haydn Wong, Company Secretary.
For further information please contact:
INVESTORS Alex MacDonald, GM Corporate Finance & Investor Relations 64 21 221 4266 Alex.MacDonald@fbu.com
MEDIA Christian May, Chief Corporate Affairs Officer 64 21 305 398 Christian.May@fbu.com
For information on Fletcher Building visit fletcherbuilding.com