New Zealand Professional Investment Services Firm

Forsyth Barr

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.

New Zealand Professional Investment Services Firm, Forsyth Barr

Equity Bottom-Up

<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