Fletcher Building (FBU.AX): First Take: FY26 guidance provided. Sale proceeds to drive deleveraging; Sell

Research evidence excerpt

Fletcher Building (FBU.AX): First Take: FY26 guidance provided. Sale proceeds to drive deleveraging; Sell

Equity Research

17 June 2026 | 2:14PM AEST

Fletcher Building (FBU.AX): First Take: FY26 guidance provided. Sale

proceeds to drive deleveraging; Sell

FBU expects FY26 EBIT of NZ$375m-380m, excluding discontinued items Niraj Shah

+61(2)9320-1369 | niraj.shah@gs.com

(Construction, Reinforcing & Wire, and CSP) and including ~NZ$40m of Goldman Sachs Australia Pty Ltd

property-related earnings. FY26 guided EBIT (excluding one-off property related Sophie Yu

earnings) sit 4% above GSe (excluding Construction). Management noted that +61(3)9679-1076Goldman Sachs Australia| sophie.x.yu@gs.comPty Ltd

existing construction projects continue to progress and support material demand. Alex Nosatti

However, rising fuel costs and broader cost inflation are causing delays and some +61(2)9321-8342Goldman Sachs Australia| alex.nosatti@gs.comPty Ltd

cancellations of new projects, particularly in the commercial sector. If this trend is

sustained, management noted that it is likely to weigh on group performance in

1H27.

FBU has announced six transactions in 2H26, with three already settled, two

settling before FY26 end, and one expected in 1H27. Together, these transactions

are expected to contribute ~NZ$450m of net cash proceeds in 2H26, which will be

applied to debt reduction. The breakdown of the transactions is as follows:

n Divestments

o Construction (New Zealand) - Settled 29 May 2026; ~NZ$315m in net

proceeds (subject to final working capital and net debt adjustments).

o Construction (Fiji JV) - Settled 14 May 2026; sale of remaining 50% to

existing JV partners; non-material proceeds.

o Fletcher Reinforcing and Wire - Announced 28 April 2026; expected to