Fletcher Building expects no 'meaningful recovery' in sales volumes before 2027
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The news: Construction group Fletcher Building has reported a "modest improvement" in sales volumes for the second quarter, but CEO Andrew Reding has warned the company is unlikely to see "meaningful recovery" in volumes until 2027.
The numbers: Fletcher's light building products units Waipapa and Iplex NZ saw volume growth of 4% and 3.7% respectively, compared with the prior quarter. Volumes in those divisions were up 23.4% and 15.1% respectively year on year.
However, Fletcher's heavy building materials business experienced volume contractions, with Winstone Aggregates (-2.7%) and Humes (-7.6%) declining quarter over quarter. The two units were also down 8.4% and 6.1% respectively, compared with the prior corresponding period.
The context: Fletcher said trading conditions remain competitive, with ongoing margin pressure and compression continuing to be seen across many of its business units, particularly in its distribution division.
What they said: "Quarterly volumes showed modest improvement compared with Q1 FY26, with some encouraging signs emerging across the portfolio," said Reding.
"That said, these gains are yet to be sustained and, on their own, are not enough to offset the impact of the earlier declines."
The source: ASX
