Reinstate with BUY: Mid-Cycle Earnings Remain Unappreciated

研报英文原文证据摘录

Reinstate with BUY: Mid-Cycle Earnings Remain Unappreciated

Australia | Building Materials

Fletcher Building EquityJuneResearch17, 2026

RATING | TARGET CHANGEReinstate with BUY: Mid-Cycle Earnings

RATING BUY (RESTRICTED)Remain Unappreciated

PRICE NZD3.20^

We reinstate our BUY rating on FBU following restriction, PT NZ$4.00.

Today's trading update is generally inline with consensus excluding PRICE TARGET | % TO PT NZD4.00 (NA) | +25%

property sales, with FBU noting stable trading conditions in 2H26 although 52W HIGH-LOW NZD3.97 - NZD2.65

remains cautious on macro into FY27. This remains sensible, with self-help FLOAT (%) | ADV MM (USD) 100.2% | 1.52

initiatives likely to drive any earnings growth in the near-term; however, FBU MARKET CAP NZD3.4B | AUD2.8B

remains attractively positioned for any uptick in NZ housing. TICKER FBU NZ ^Prior trading day's closing price unless otherwise

noted.

Earnings changes. We reflect several changes to our model following restriction, namely

RATING BUY (RESTRICTED)

reflecting various asset and property divestments in our cashflow and earnings forecasts. We

also slightly increase 2H26 Light Building Products earnings, although decrease FY27+ Heavy TICKER FBU AU

Building Materials given expectation for continual margin pressure and infrastructure project PRICE AUD2.65^

delays. Continuing EBIT increases +21% in FY26 although largely driven by one-off Property PRICE TARGET | % TO PT AUD3.30 (NA) | +25%

sales (~$40m); FY27+ cuts are LSD% driven by moderated margin growth assumptions

particularly in Heavy Building Materials.

FY (Jun) CHANGE TO JEFe JEF vs CONS

FBU sensibly re-iterates cautious view on FY27 macro. FBU Mgmt have been clear to 2025 2026 2025 2026