Fletcher Building is back in profit, returning to the black after taking a huge loss last year.
The business, which is New Zealand's largest listed building products company, has posted a net profit of $228 million for the financial year ending in June.
This was an improvement of $647 million from the previous financial year's net loss of $419 million.
Underlying earnings (EBIT) were $414 million, up $85 million from the previous 12 months.
For investors, earnings per share were 21.2 cents, up from the previous loss of 41.4 cents.
Net cash from operating activities was up $501 million to $715 million.
The company reported net debt of $637 million, down from $999 million at the end of the 2025 financial year.
After last year's loss, Fletcher Building announced a reset aimed at cutting costs, simplifying its business, and reducing debt.
It sold its construction division, shifting its focus to building products, manufacturing, and distribution. It used the proceeds of the sale to "strengthen" its balance sheet.
Managing director and CEO Andrew Reding said the company was "significantly more resilient than it was twelve months ago".
"We have moved at pace to improve our business model, and the strategic reset we set out last year is now starting to deliver tangible results."
He said the core manufacturing units had "performed well in a difficult trading environment".
"A sustained focus on operational and capital discipline saw us materially improve net cash from operating activities for the year.
"We acknowledge there is still more work to do to achieve our targeted returns on capital. However, the Group is now more focused, more resilient and better positioned to benefit once market conditions start to recover.”
Earlier this year, Fletcher's Northland cement plant, Golden Bay Cement, was granted a $60 million bailout by the Government to help it stay afloat amid overseas competition that does not face the same emissions charges.
The board has not declared a dividend, with its policy to be reset and communicated to shareholders once the company is generating positive free cash flow and is in the lower half of the net debt target range.
With the economic and political climate still uncertain, a meaningful recovery in underlying volumes was not expected until calendar year 2027.
“Our priorities remain clear: maintain cost and capital discipline, complete the remaining legacy workstreams, and position the Group to capture upside once demand improves," Reding said.
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