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>Whilst Fletcher Building’s (FBU) 1Q26 update showed some stabilisation of volumes on prior quarters, competitive pressures continue to impact margins.</li><li>We have reduced our FY26 EBIT forecast to NZ$396m, which is broadly stable on FY25.</li><li>We continue to expect volumes to pick up over FY26/27 as interest rate cuts and government spending flow through to activity.</li></ul>

Whilst Fletcher Building’s (FBU) 1Q26 update showed some stabilisation of volumes on prior quarters, competitive pressures continue to impact margins.We have reduced our FY26 EBIT forecast to NZ$396m, which is broadly stable on FY25.We continue to expect volumes to pick up over FY26/27 as interest rate cuts and government spending flow through to activity.

Fletcher Building 1Q26 Volumes—Bouncing Along the Bottom

<ul><li>Fletcher Building (FBU) reported FY25 EBIT down -25%, impacted by lower end demand.</li><li>We forecast FY26 free cash flow to remain subdued (land commitments and legacy projects); as a result, net debt is likely to remain stable unless there are divestments.</li><li>Looking through cyclically low earnings, FBU trades at a two-year forward PE of 12.7x, slightly above its long-run average.</li></ul>

Fletcher Building (FBU) reported FY25 EBIT down -25%, impacted by lower end demand.We forecast FY26 free cash flow to remain subdued (land commitments and legacy projects); as a result, net debt is likely to remain stable unless there are divestments.Looking through cyclically low earnings, FBU trades at a two-year forward PE of 12.7x, slightly above its long-run average.

Fletcher Building FY25 Result—Waiting To Rebuild

<ul><li>Fletcher Building (FBU) will report a messy FY25 result, muddied by NZ$320m–NZ$530m of significant items in 2H25, taking full-year significant items to NZ$513m–NZ$723m.</li><li>On an underlying basis, FBU is expecting FY25 EBIT of NZ$370m–NZ$375m.</li><li>We expect outlook commentary for FY26 to be relatively muted, as FBU noted at its June investor day that it expects no material pickup in activity until FY27.</li></ul>

Fletcher Building (FBU) will report a messy FY25 result, muddied by NZ$320m–NZ$530m of significant items in 2H25, taking full-year significant items to NZ$513m–NZ$723m.On an underlying basis, FBU is expecting FY25 EBIT of NZ$370m–NZ$375m.We expect outlook commentary for FY26 to be relatively muted, as FBU noted at its June investor day that it expects no material pickup in activity until FY27.

Fletcher Building FY25 Preview—Planning Stages

Financial News, Analysis and Data, FNArena

FNArena

Financial News, Analysis and Data

Online financial media company focused on Australian equities, with a global perspective

<ul><li>A global perspective on what happened overnight</li></ul>

A global perspective on what happened overnight

Fletcher Building Ltd - The Overnight Report: Tariff Impacts Felt 

<ul><li>May consents ticked up but remain consistent with construction activity, with residential consents staying within the 30k–35k range for the past two years.</li><li>Non-residential consents lifted by 15.2% year-on-year, driven by the accommodation, education, and industrial sectors, with an optimistic tone due to more government activity.</li><li>Fletcher Building's market update highlights subdued activity with no material pick-up expected until FY27, despite some support from lower interest rates and government announcements.</li></ul>

May consents ticked up but remain consistent with construction activity, with residential consents staying within the 30k–35k range for the past two years.Non-residential consents lifted by 15.2% year-on-year, driven by the accommodation, education, and industrial sectors, with an optimistic tone due to more government activity.Fletcher Building's market update highlights subdued activity with no material pick-up expected until FY27, despite some support from lower interest rates and government announcements.

Building Sector NZ Consents—Stuck on a Level

New Zealand

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.

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Fletcher Building (FBU NZ)

Fletcher Building 1Q26 Volumes—Bouncing Along the Bottom

Whilst Fletcher Building’s (FBU) 1Q26 update showed some stabilisation of volumes on prior quarters, competitive pressures continue to impact margins.

Forsyth Barr

Fletcher Building FY25 Result—Waiting To Rebuild

We forecast FY26 free cash flow to remain subdued (land commitments and legacy projects); as a result, net debt is likely to remain stable unless...

Forsyth Barr

Fletcher Building FY25 Preview—Planning Stages

Fletcher Building (FBU) will report a messy FY25 result, muddied by NZ$320m–NZ$530m of significant items in 2H25, taking full-year significant...

Forsyth Barr

Fletcher Building Ltd - The Overnight Report: Tariff Impacts Felt

A global perspective on what happened overnight

FNArena

Building Sector NZ Consents—Stuck on a Level

May consents ticked up but remain consistent with construction activity, with residential consents staying within the 30k–35k range for the past...

Forsyth Barr

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