NZ Building Giant Fletcher Announces $419 Million Loss

The past year has been one of the most difficult in its history, the company said when announcing the figures to the Stock Exchange.

Thick smoke blows from a construction site at the SkyCity convention centre in Auckland, New Zealand, on Oct. 22, 2019. Greg Bowker/AFP via Getty Images

One of New Zealand’s largest listed companies, Fletcher Building, has announced a $419 million (US$244 million) loss for the full 2024/25 financial year, calling it one of the most difficult the company has ever faced. The figure compares to a loss of $227 million in the previous year.

The company has been forced to write down over $700 million, with $644 million relating to continuing operations, which analysts say is a clear indication that it is going to sell its residential and development business.

It recently put its troubled construction business—responsible for about 20 percent of its revenue—up for sale. However, the division has also been responsible for some of the company’s biggest problems, including the painstakingly slow building of the New Zealand International Convention Centre in Auckland, which caught fire and caused years-long delays.

The sale would encompass its Higgins, Brian Perry Civil, and Fletcher Construction Major Projects business units.

Other than a reduction in net debt, none of the data released to the NZX has any positives for the company. This includes $7 billion in revenue, down 9 percent, $384 million in operational earnings before the write-downs, down $125 million, and a 4.5 percent return on its investments, down from 5.5 percent.

“FY25 has been one of the most demanding years in recent memory, both for Fletcher Building and the industries in which we operate,” said Fletcher Building Managing Director and CEO Andrew Reding.

“Our businesses faced tough market conditions, as well as undertaking significant internal change, and addressing legacy issues.”

However, he said the “streamlined, decentralised organisational structure and refreshed strategy” it recently unveiled would build on its “core strengths in the manufacturing and distribution of building products.”

The reviews of the construction and residential and development operations are designed to “simplify our portfolio, sharpen our operational focus, and unlock value for shareholders,” he said.

“While there is no certainty that they will result in transactions, any potential cashflow and cost-out benefits are expected to begin flowing through from FY27, further strengthening our position for long-term growth.”

The company is predicting continued subdued demand in New Zealand through the current financial year, while Australian indicators are “mixed,” meaning it’s “too early to determine when recent signals might translate into greater activity and volumes.”

The company isn’t currently paying dividends and says it won’t do so until it gets net debt into the lower half of a $400 million to $900 million range.

As of June 30, 2025, the net debt stood at $999 million, down from $1.766 billion a year ago.