Fletcher Building deepens full-year loss to $383m
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The news: Building products supplier Fletcher Building deepened its full-year loss to NZD419 million ($383 million) in fiscal 2025, after posting a loss of NZD227 million during the previous year, as managing director and CEO Andrew Reding called the 12-month period "one of the most demanding years in recent memory."
The numbers: Revenue in FY25 fell 9% year on year from NZD7.68 billion to NZD7 billion. The market consensus expectation for revenue was NZD7.14 billion and an operating loss of NZD95.4 million.
The context: Fletcher said the full-year loss reflected softer demand across all its markets and one-off significant items totalling NZD702 million. These included NZD177 million relating to plumbing failures by pipes provided by its subsidiary Iplex in Western Australia.
They also included NZD424 million following operating model changes and strategic review decisions, such as business closures and write-offs on projects no longer being pursued.
The group said market volumes in New Zealand are expected to remain low "with subdued demand through FY26". Indicators are mixed in Australia, it said, but it is "too early to determine when recent signals might translate into greater activity and volumes".
What they said: "Our businesses faced tough market conditions, as well as undertaking significant internal change, and addressing legacy issues," said Reding.
"However, significant progress has been made on our strategic plan to reposition the business for more sustainable returns going forward."
The source: ASX
