Fletcher Building reaffirms earnings and drops Moody's rating
- Fletcher Building (ASX:FBU) reaffirmed its full-year earnings guidance range of NZ$375–NZ$380 million despite volatile global trading conditions.
- The construction firm will withdraw its Moody's credit rating after a string of six asset sales reduced its net balance sheet debt.
- Management plans to apply NZ$450 million in net cash proceeds from these recent divestments directly towards debt reduction in the second half.
New Zealand materials manufacturer Fletcher Building (ASX:FBU) has reaffirmed its fiscal year 2026 earnings guidance of NZ$375–NZ$380 million and announced the withdrawal of its Moody's credit rating following major debt-reducing asset sales.
The projected operating earnings match previous targets despite volatile market conditions and include approximately NZ$40 million from recent property-related transactions.
"With the transition to a more stable capital structure now well advanced, Fletcher Building has notified Moody's that it wishes to withdraw its credit rating," the company stated in its market release.
The company executed six divestments across its New Zealand and Fiji construction units, alongside its reinforcing and wire divisions, to refocus operations and cut costs.
Following the announcement, the Fletcher Building share price was unchanged at $2.26.
The capital restructuring strategy aims to keep the business operating within a strict net debt target range of NZ$400–NZ$900 million.
The combined asset sales are projected by management to deliver roughly NZ$450 million in net cash proceeds during the second half to directly lower corporate debt.
