Fletcher Building upgrades full-year guidance on volume improvements
Make us a preferred source
Make us a preferred source on Google
The news: Fletcher Building has upgraded its full-year earnings before interest and tax (EBIT) guidance to a range of NZD400 million ($329 million) to NZD403 million, marking a 6.4% increase over its previous target, driven by significant volume improvements across its core manufacturing and distribution divisions.
The numbers: The company also upgraded its operational EBIT guidance to deliver between NZD348 million to NZD351 million, excluding property sales, up 3.6% over its previous target.
Property sales are projected to contribute approximately NZD52 million, which excludes a NZD9 million hit from significant items cost, subject to final year-end adjustments.
The context: Fletcher stated that the improved guidance was primarily driven by its Light Building Materials division, which benefited from favourable raw material procurement, increased manufacturing productivity, and the optimised use of low-cost scrap.
The company also recorded stronger customer demand for its Iplex business across New Zealand and Australia, alongside positive momentum in the Heavy Building Materials division due to unseasonable stable weather conditions throughout June.
Looking ahead, the company warned that macroeconomic uncertainty and persistent inflation costs are leading to delays and cancellation across its existing projects, adding that the trend will likely weigh on its first half of FY27 group performance if sustained.
The source: ASX
