Increase in Guidance for FY26 & Q4 Quarterly Volume Report
09/07/2026 08:30 NZST, MKTUPDTEP
• Increase in FY26 EBIT guidance by ~6.4% to between $400m to $403m, inclusive of ~$52m of earnings from surplus property sales.
• Volumes improved across core manufacturing and distribution divisions, albeit supported in some cases by temporary market dynamics.
• Existing construction activity continues to support demand, but input cost uncertainty is resulting in delays or cancellations of new projects, particularly in the commercial sector, which could adversely impact the recovery in 1H FY27 if sustained.
Guidance update
Following the completion of its financial year on 30 June, Fletcher Building now expects continuing operations FY26 EBIT before Significant Items to be in the range of $400m to $403m.
Excluding property sales, the continuing operations are expected to deliver FY26 EBIT of between $348m and $351m, an improvement of ~3.6% from the midpoint of the mid-June guidance range. The Light Building Materials division saw further benefit from favorable raw material procurement, improved manufacturing productivity and greater use of low-cost scrap. Additionally, the Iplex businesses (both NZ and AU) saw increases in demand as customers accelerated purchases ahead of progressive price increases. The Heavy Building Materials division also saw good demand in the civil and infrastructure sector due to unseasonally settled weather through June.
Looking forward, existing construction projects continue to progress, supporting ongoing demand for materials. However, macro uncertainty and broader cost inflation are leading to delays in, and in some instances cancellations of, new projects, particularly in the commercial sector. If sustained, this trend is likely to weigh on Group performance in the first half of FY27.
Property sales are now expected to deliver ~$52m of EBIT in FY26 (excluding Significant Items of ~$9m), subject to finalisation of year end processes. This reflects greater certainty regarding the gain on sale for the Laminex Cheltenham site in Australia. Foreign exchange, environmental remediation and restructuring costs relating to the sale have been subject to further due diligence, and additionally the costs relating to the exit of the site (~$9m) will be classified as Significant Items consistent with historic treatment. This will be the last period in which Significant Items will be a category of expenses as Fletcher Building looks to early adopt an IFRS 18 compliant Income Statement in FY27.
Divisional Volumes for Q4 FY26
• Light Building Products volumes showed a positive trend versus both Q3 and pcp, several business units experiencing favourable market dynamics including demand “pull forward” that is expected to normalise in Q1 FY27. Volume growth was seen across all New Zealand business units with Iplex NZ and Comfortech growing versus both Q3 (9.5% and 3.6% respectively) and pcp (24.6% and 6.3% respectively). In Australia, volumes also improved relative to Q3 and pcp, with both Iplex AU and Fletcher Insulation delivering particularly strong performances, the latter relating to market share gains.
• Heavy Building Materials delivered a mixed performance, with volumes positive vs Q3, but with some key business units still flat or down compared to pcp. Winstone Aggregates volumes grew 2.3% versus Q3 but remained 5.4% below pcp, reflecting an ongoing recovery from the weaker roading and project activity in 1H FY26. Humes volumes were up 4.3% against Q3, but down 2.4% on pcp. Golden Bay and Firth Ready Mix volumes were up against Q3 (1.9% and 2.6% respectively) and broadly in line with pcp (0.1% and 2.1% respectively).
• Within the Distribution division, PlaceMakers Frame & Truss volumes were higher than both Q3 and pcp (5.4% and 12.8% respectively), with the new Cavendish Drive site now operational and supporting the Auckland market.
• Residential took 220 residential and apartment units to profit in Q4, compared to 247 in the pcp. A total of 536 units were taken to profit in FY26, compared to 666 in FY25.
The quarterly volume data for Q4 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