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Fletcher Building Limited
(FBU)
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Rating:54Neutral
Price Target:
$3.50
▼(-11.84% Downside)
Action:N/A
Date:10/05/26
The score is driven primarily by improving but still mixed financial performance (balance-sheet repair and stronger cash flow alongside declining multi-year revenue and volatile profitability). The latest earnings call supports the recovery narrative but is tempered by cautious FY27 guidance and ROIC still below WACC. Technical indicators are the main drag, showing weak momentum and the stock trading below key moving averages, while valuation is moderate based on the provided P/E.
Positive Factors
Balance-sheet repair
Material debt reduction and higher equity have strengthened financial resilience, lowering leverage pressure and improving capacity to fund essential investment. This healthier balance sheet gives Fletcher Building more flexibility to manage construction cycles and pursue its portfolio strategy over the coming quarters.
Negative Factors
Delayed volume recovery
A delayed construction-volume recovery can keep capacity utilization and revenue growth under pressure through the next several months. With residential and commercial activity still soft, the company may have limited operating leverage and less opportunity to convert cost actions into sustained earnings growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance-sheet repair
Material debt reduction and higher equity have strengthened financial resilience, lowering leverage pressure and improving capacity to fund essential investment. This healthier balance sheet gives Fletcher Building more flexibility to manage construction cycles and pursue its portfolio strategy over the coming quarters.
Read all positive factors
Fletcher Building Limited (FBU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.65B
Dividend Yield7.72%
Average Volume (3M)988.35K
Price to Earnings (P/E)16.2
Beta (1Y)1.19
Revenue Growth-14.30%
EPS GrowthN/A
CountryNZ
Employees9,000
SectorBasic Materials
Sector Strength58
IndustryConstruction Materials
Share Statistics
EPS (TTM)0.21
Shares Outstanding1,074,897,300
10 Day Avg. Volume971,542
30 Day Avg. Volume988,348
Financial Highlights & Ratios
PEG Ratio-0.11
Price to Book (P/B)0.92
Price to Sales (P/S)0.61
P/FCF Ratio8.26
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$3.83Price Target Upside-3.58% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering7
EPS Forecast (FY)0.19
Revenue Forecast (FY)$6.09B
Fletcher Building Limited Business Overview & Revenue Model
Company Description
Fletcher Building Limited, a leading entity with its various subsidiaries, specializes in the production and supply of diverse building materials across New Zealand, Australia, and global markets. The company's operations are divided into six core...
How the Company Makes Money
Fletcher Building makes money primarily by selling building and construction-related goods and services to builders, contractors, developers, infrastructure customers, and retail/trade channels. Its revenue model is largely volume-driven and tied ...
Fletcher Building Limited Earnings Call Summary
Earnings Call Date:Aug 18, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Feb 16, 2027
Earnings Call Sentiment Positive
The call presented a clear operational and financial turnaround: positive net earnings, materially stronger operating cash flow, meaningful net debt reduction and disciplined cost and portfolio actions. Many operating units improved and several achieved double-digit ROIC, while structural cost reductions and divestments enhanced financial flexibility. However, returns remain below target (ROIC vs WACC), legacy costs and legal exposures persist, and near-term volume recovery is uncertain given geopolitical and election-related macro risks and evidence of pull-forward demand. On balance, the progress reported materially outweighs the remaining challenges, but management cautioned that FY'27 remains volatile.Positive Updates
Return to Profitability
Net earnings of $228 million in FY'26 versus a loss of $419 million in FY'25 — the first positive earnings result since FY'23, driven largely by the absence of prior-year impairments.
Negative Updates
Returns Still Below Target
Group ROIC at 5.3% (4.7% ex land sales) remains below acceptable levels and below WACC; management emphasised that further ROIC improvement is a priority and more work is required across several businesses.
Read all updates
Q4-2026 Updates
Positive
Negative
Return to Profitability
Net earnings of $228 million in FY'26 versus a loss of $419 million in FY'25 — the first positive earnings result since FY'23, driven largely by the absence of prior-year impairments.
Read all positive updates
Company Guidance
Management guided that FY27 will be volatile with no meaningful recovery in underlying volumes expected until calendar 2027 and first‑half sensitivity from geopolitical and election uncertainty; they forecast capital expenditure stepping down to c.$170m (including ~$40m for OSB and ~$30m of quarry stripping/land), interest costs of around $60m (lease interest ~ $65–70m), previously contracted land settlements of c.$110m in FY27 (c.$75m in H1), and a post‑refinance weighted average debt maturity rising from 1.6 to ~2.6 years while net debt sits at $637m inside the $400–$900m target; this outlook sits alongside FY26 results of revenue just under $6.0bn (+7.3%), EBIT before significant items $414m (EBIT ex property sales $362m), EPS $0.212, group ROIC 5.3% (4.7% ex land sales), net cash from operations $715m (normalized $707m), and FY26 capex $288m (ex‑OSB/divested $138m); dividend policy will be reset once sustainable positive free cash flow and balance sheet targets are met.Fletcher Building Limited Financial Statement Overview
Summary
Income Statement
48
Neutral
Balance Sheet
62
Positive
Cash Flow
58
Neutral
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.99B | 6.99B | 7.68B | 8.47B | 8.50B |
| Gross Profit | 1.62B | 1.95B | 2.16B | 2.63B | 2.51B |
| EBITDA | 722.00M | 36.00M | 460.00M | 799.00M | 996.00M |
| Net Income | 228.00M | -419.00M | -227.00M | 235.00M | 432.00M |
Balance Sheet | |||||
| Total Assets | 7.48B | 7.90B | 8.87B | 9.08B | 8.42B |
| Cash, Cash Equivalents and Short-Term Investments | 145.00M | 139.00M | 311.00M | 365.00M | 351.00M |
| Total Debt | 2.02B | 2.67B | 3.54B | 3.40B | 2.69B |
| Total Liabilities | 3.52B | 4.29B | 5.55B | 5.40B | 4.66B |
| Stockholders Equity | 3.96B | 3.60B | 3.32B | 3.65B | 3.75B |
Cash Flow | |||||
| Free Cash Flow | 441.00M | 221.00M | -4.00M | -57.00M | 195.00M |
| Operating Cash Flow | 729.00M | 501.00M | 398.00M | 388.00M | 594.00M |
| Investing Cash Flow | 9.00M | -61.00M | -426.00M | -641.00M | -356.00M |
| Financing Cash Flow | -746.00M | -612.00M | -26.00M | 269.00M | -557.00M |
Fletcher Building Limited Technical Analysis
Negative
3.97
Price Trends
3.75
Negative
3.54
Negative
3.46
Negative
Market Momentum
-0.08
Positive
28.04
Positive
33.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NZ:FBU, the sentiment is Negative. The current price of 3.97 is above the 20-day moving average (MA) of 3.63, above the 50-day MA of 3.75, and above the 200-day MA of 3.46, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 28.04 is Positive, neither overbought nor oversold. The STOCH value of 33.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NZ:FBU.
Fletcher Building Limited Peers Comparison
UnderperformOutperform
Sector (61)
NZ:FBU
Fletcher Building Limited
3.39
-0.09
-2.59%
NZ:ARB
ArborGen Holdings
0.07
-0.06
-47.20%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.