The Fletcher Building Ltd (ASX: FBU) share price is in focus as the company expects FY26 EBIT of $375–$380 million, helped by $40 million in property deal profits.
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What did Fletcher Building report?
- FY26 forecast EBIT: $375 million to $380 million, excluding discontinued operations
- Includes about $40 million of earnings from property sales
- Six recent divestments and property sales to deliver around $450 million in cash
- Net debt forecast to sit marginally above the mid-point of the $400–$900 million target range at 30 June 2026
- Moody's credit rating to be withdrawn following balance sheet improvements
What else do investors need to know?
Fletcher Building has completed or agreed to six asset sales since the start of 2026, including divestments of its New Zealand construction business and several properties in Australia. The transactions, expected to yield about $450 million in net cash, will help pay down debt and simplify operations.
Management spotlighted steady demand in ongoing construction projects, but rising fuel and input costs are causing delays and some cancellations—especially in commercial projects. Fletcher Building cautions these pressures may affect performance in the first half of FY27.
What's next for Fletcher Building?
The company is advancing its strategy to reduce debt and focus on core businesses after recent divestments. With a more stable and simplified capital structure, Fletcher Building aims to maintain investment-grade credit metrics, even after withdrawing its Moody's credit rating.
Looking ahead, the company will keep a close eye on volatile trading conditions and cost pressures, especially in the commercial construction sector. Fletcher Building expects subdued new project activity could affect performance into FY27 if current trends persist.
Fletcher Building share price snapshot
Over the past 12 months, Fletcher Building shares have declined 11%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.
