Fletcher Building (ASX: FBU) announced its financial results for the first half of fiscal year 2026, reporting a steady underlying performance despite enduring "demanding" market conditions across New Zealand and Australia.
For the six months ended Dec. 31, 2025, the group recorded revenue from continuing operations of NZ$2.87 billion, holding firm against the prior corresponding period.
The company's EBIT before significant items reached NZ$145 million, maintaining a stable margin of 5.1%.
While return on invested capital saw a slight dip to 4.3% from the previous year's 4.6%, the group's cash position showed notable strength.
Net cash from operating activities surged to NZ$156 million—a significant jump from the NZ$87 million reported previously—driven by disciplined capital allocation and improved working capital management.
Managing Director Andrew Reding characterised the period as one of transition, noting that while the first quarter was particularly weak, the second quarter showed signs of stabilisation.
A pivotal moment in this "reshaping" of the business was the Jan. 20 announcement regarding the sale of the Construction division.
Reding emphasised that this divestment is a "major step" toward transforming Fletcher Building into a leaner, more focused entity centered on building products manufacturing and distribution.