Fletcher Building Ltd (ASX: FBU) shares are higher in mid-afternoon trade on Tuesday.
At the time of writing, the Fletcher share price is up 1.38% to $2.95.
This comes despite weakness in the broader market. The S&P/ASX 200 Index (ASX: XJO) is currently down 1.32% as investors react to escalating conflict in the Middle East.
Here's what the company announced.
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Higgins secures 10-year road maintenance contracts
According to the release, Fletcher announced that its subsidiary, Higgins Contractors, has officially signed major road maintenance contracts with New Zealand's transport authority.
The contracts cover the East Waikato, Bay of Plenty, and Hawke's Bay regions. Each agreement runs for 10 years, starting from April 2026.
Higgins had previously been named as the preferred contractor in December 2025. However, the agreements have now been formally signed and locked in.
Managing Director and Chief Executive Officer Andrew Reding said the agreements are an important milestone for Higgins and provide a strong platform for the next decade.
The company also reminded investors that it has entered into a binding agreement to sell its Construction Division to VINCI Construction. The final purchase price could change depending on the outcome of key contract negotiations.
Fletcher and VINCI are still working through the details and will update the market separately.
What does Fletcher actually do?
Fletcher is one of New Zealand's largest building materials and construction companies.
It operates across New Zealand and Australia. The business makes and supplies building products such as plasterboard, insulation, roofing, piping, and concrete. It also runs trade and retail distribution businesses that supply builders and tradespeople.
Through subsidiaries like Fletcher Construction and Higgins, the group also works on large infrastructure and construction projects.
In recent years, management has reviewed the business and explored selling non-core divisions to streamline operations and strengthen financial performance.
Foolish Takeaway
Fletcher has faced a challenging period, with pressure on earnings and margins in its recent financial results. The share price has also been volatile over the past year, trading between roughly $2.64 and $3.44.
The modest share price gain reflects investor support for the long-term nature of the new road maintenance contracts. Government-backed work that runs for a decade can provide more stable and predictable revenue.
The company is still progressing broader restructuring efforts, and investors will be watching for updates on the proposed sale of the Construction Division.
Any progress on asset sales and restructuring will likely remain a key driver of sentiment this year.
Fletcher shares are outperforming the wider market in what has been a weak session for the ASX.
