New Zealand Professional Investment Services Firm, Forsyth Barr

Forsyth Barr

New Zealand Professional Investment Services Firm

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

Equity Bottom-Up

<ul><li>Fletcher Building (FBU) will report its 1H25 result on Wednesday, 19 February.</li><li>We expect EBIT to decline -38% to NZ$162m, driven by broad-based volume declines and competitive margin pressure.</li><li>While forward indicators have improved, data and anecdotal evidence suggest construction activity was still rebasing in the December 2024 quarter, making the first half of 2025 likely to remain challenging. </li></ul>

Fletcher Building (FBU) will report its 1H25 result on Wednesday, 19 February.We expect EBIT to decline -38% to NZ$162m, driven by broad-based volume declines and competitive margin pressure.While forward indicators have improved, data and anecdotal evidence suggest construction activity was still rebasing in the December 2024 quarter, making the first half of 2025 likely to remain challenging. 

Fletcher Building - 1H25 Preview—Where to Next?

Thematic (Sector/Industry)

<ul><li>Ready-mix concrete production shows signs of stabilisation with modest improvements expected in the latter half of 2025.</li><li>Regionally, Auckland and Otago/Southland show year-on-year volume growth, indicating a potential uptick in construction activity.</li><li>Fletcher Building's upcoming investor day will provide further insights, with market expectations of a 10%-15% decline in FY25 volumes.</li></ul>

Ready-mix concrete production shows signs of stabilisation with modest improvements expected in the latter half of 2025.Regionally, Auckland and Otago/Southland show year-on-year volume growth, indicating a potential uptick in construction activity.Fletcher Building's upcoming investor day will provide further insights, with market expectations of a 10%-15% decline in FY25 volumes.

Building Sector Ready-Mix Concrete—Levelling Off

<ul><li>Ready-mix concrete (RMC) production fell -6% year-on-year in the December 2024 quarter, marking another down year for the sector.</li><li>Total 2024 volumes declined -8%, and on a 12-month rolling basis, concrete production is now -20% below its September 2022 peak.</li><li>As an early construction material, weak concrete production suggests activity is likely to remain subdued over the first half of 2025. </li></ul>

Ready-mix concrete (RMC) production fell -6% year-on-year in the December 2024 quarter, marking another down year for the sector.Total 2024 volumes declined -8%, and on a 12-month rolling basis, concrete production is now -20% below its September 2022 peak.As an early construction material, weak concrete production suggests activity is likely to remain subdued over the first half of 2025. 

Building Sector - Ready-Mix Concrete—2024 Sets

<ul><li>Total residential consents for 2024 settled c.-10% lower than the prior year at 33.6k.</li><li>This decline was driven by a c.-17% drop in high-density consents, while detached housing remained broadly flat (+1%).</li><li>Monthly consent numbers have remained stable within the 30k–35k range throughout the year. </li></ul>

Total residential consents for 2024 settled c.-10% lower than the prior year at 33.6k.This decline was driven by a c.-17% drop in high-density consents, while detached housing remained broadly flat (+1%).Monthly consent numbers have remained stable within the 30k–35k range throughout the year. 

Building Sector - NZ Consents—Another Year Down

<ul><li>Fletcher Building (FBU) announced that the joint industry response (JIR) for its Pro-Fit pipe leak issues in Western Australia has been finalised.</li><li>The key terms from the agreement are unchanged from the announcement in August.</li><li>While the finalisation of the JIR does not fully sterilise the issue, with litigious risk and potential cost overrun the key risks from here, this is an important step for FBU to draw a line in the sand on this issue. </li></ul>

Fletcher Building (FBU) announced that the joint industry response (JIR) for its Pro-Fit pipe leak issues in Western Australia has been finalised.The key terms from the agreement are unchanged from the announcement in August.While the finalisation of the JIR does not fully sterilise the issue, with litigious risk and potential cost overrun the key risks from here, this is an important step for FBU to draw a line in the sand on this issue. 

Fletcher Building - WA Pipes Joint Industry Response Finalised

Australia

Fletcher Building Limited manufactures, distributes, and sells materials for the building industry including wood fiber-based products, cement and aggregates, plasterboard, laminates, lumber, and aluminium extrusion. The Company operates primarily in New Zealand and Australia.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Fletcher Building (FBU AU)

Fletcher Building - 1H25 Preview—Where to Next?

Fletcher Building (FBU) will report its 1H25 result on Wednesday, 19 February. We expect EBIT to decline -38% to NZ$162m, driven by broad-based...

Forsyth Barr

Building Sector Ready-Mix Concrete—Levelling Off

Fletcher Building's upcoming investor day will provide further insights, with market expectations of a 10%-15% decline in FY25 volumes.

Forsyth Barr

Building Sector - Ready-Mix Concrete—2024 Sets

Ready-mix concrete (RMC) production fell -6% year-on-year in the December 2024 quarter, marking another down year for the sector.

Forsyth Barr

Building Sector - NZ Consents—Another Year Down

Total residential consents for 2024 settled c.-10% lower than the prior year at 33.6k. This decline was driven by a c.-17% drop in high-density...

Forsyth Barr

Fletcher Building - WA Pipes Joint Industry Response Finalised

Fletcher Building (FBU) announced that the joint industry response (JIR) for its Pro-Fit pipe leak issues in Western Australia has been finalised.

Forsyth Barr

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)