Fletcher Building reaffirms FY26 earnings, drops Moody’s credit rating

The news: Fletcher Building has reaffirmed its FY26 earnings before interest and tax guidance to a range of NZD375 million ($310 million) to NZD380 million, excluding discontinued operations, despite volatile trading conditions.

This also includes approximately NZD40 million of property-related earnings.

The context: The construction company also stated that it will withdraw its Moody’s credit rating after a string of asset sales slashed debt. These divestments include its construction operations across New Zealand, Fiji as well as its reinforcing and wire divisions. Fletcher confirmed it intends to operate within a net debt range of NZD400 million to NZD900 million.

The combined property sales and divestment transactions are projected to deliver approximately NZD450 million in net cash proceeds in the second half, which will be applied directly to its debt reduction.