Fletcher Building flags FY27 cost pressure risks, moves to withdraw Moody’s rating (updated)

Fletcher Building

16/06/2026 23:01

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    June 17 (Reuters) - New Zealand's Fletcher Building  FBU.NZ 
on Wednesday said sustained pressure from rising fuel costs and
broader input inflation could weigh on its performance in the
first half of fiscal 2027.
    The Auckland-based construction materials maker said rising
costs were delaying and, in some cases, leading to cancellations
of new projects, particularly in the commercial sector.
    Oil prices remain well above pre-conflict levels following
the Middle East crisis, keeping fuel, freight and raw material
costs elevated. 
    The company said it expects fiscal 2026 earnings before
interest and taxes of NZ$375 million to NZ$380 million ($218.44
million-$221.35 million), excluding discontinued operations and
inclusive of NZ$40 million of earnings from property sales. 
    This compares with an EBIT before significant items of
NZ$384 million a year earlier.
    Citing its transition to a more stable capital structure,
Fletcher added it had notified Moody's that it wishes to
withdraw its credit rating and would continue to target
investment-grade credit metrics.
    Asset sales and divestments are expected to reduce net debt
to marginally above the midpoint of its NZ$400 million to NZ$900
million target range by June 30, it said, from NZ$999 million at
the end of fiscal 2025.    


($1 = 1.7167 New Zealand dollars)

 (Reporting by Shruti Agarwal in Bengaluru; Editing by Joyjeet
Das)
 ((mailto:Shruti.Agarwal@thomsonreuters.com;))