{"id":481798,"date":"2026-06-17T11:01:14","date_gmt":"2026-06-17T11:01:14","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/481798\/"},"modified":"2026-06-17T11:01:14","modified_gmt":"2026-06-17T11:01:14","slug":"fletcher-building-cuts-debt-with-450m-asset-sales","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/481798\/","title":{"rendered":"Fletcher Building cuts debt with $450m asset sales"},"content":{"rendered":"

After the settlement of the construction division divestment<\/a> and the other sales, Fletcher will have significantly reduced its net debt, it said.<\/p>\n

\" The former Winstone Wallboards site, 37-41 Felix St, Penrose, Auckland is 5ha and has been sold in one of the latest deals. Photo \/ Colliers<\/p>\n

It is forecasting that to be only marginally above the middle of its $400m to $900m net debt target range.<\/p>\n

\u201cWith the transition to a more stable capital structure now well advanced, Fletcher Building has notified Moody\u2019s that it wishes to withdraw its credit rating. Fletcher Building will continue to target investment-grade credit metrics,\u201d the company said.<\/p>\n

Fletcher announced six transactions in this financial year\u2019s second half with three already settled and two settling before the end of the June 30 year.<\/p>\n

\"FletcherFletcher built the NZ International Convention Centre. Left to right are Ng\u0101ti Wh\u0101tua \u014cr\u0101kei chairwoman Marama Royal, NZICC general manager Prue Daly, SkyCity CEO Jason Wallbridge, Prime Minister Christopher Luxon, Louise Upston, Mayor Wayne Brown, Deputy Mayor Desley Simpson and Fletcher Building CEO Andrew Reding. Photo \/ Michael Craig<\/p>\n

Those six are:<\/p>\n

Construction (New Zealand), sold, settled May 29 for $315m in net proceeds subject to final working capital and net debt adjustments. Construction (Fiji JV) sold, settled May 14: sale of remaining 50% to existing JV partners; non-material proceeds. Fletcher Reinforcing and Wire, sale announced April 28, expected to settle before the end of the calendar year 2026. Sale price $15.7m;South Australian property sold: unconditional agreement announced May 15, settling this month. Sale price of A$20.05m, gain of A$10m;Laminex Cheltenham property: sale announced May 8, went unconditional June 16, settling this month. Sale price of A$53.8m, gain of A$14m;Felix St property, the former Winstone Wallboards manufacturing plant in Penrose, Auckland: unconditional agreement announced February 11, settled last month. Sale price of $53.5m. A gain on sale of $11m.<\/p>\n

The $450m sales would be applied to debt reduction, the company said.<\/p>\n

Trading update<\/p>\n

On the trading outlook for 2027, the company continues to monitor the impact of the Middle East crisis it said.<\/p>\n

Despite the war ending, operational and financial issues still presented material risk and uncertainty.<\/p>\n

Despite the volatile trading conditions, FY26 performance had been relatively stable and FY26 earnings before interest and tax (ebit) were expected to be between $375m and $380m.<\/p>\n

That excludes discontinued items from business sales and includes $40m of property-related earnings.<\/p>\n

Fletcher Building\u2019s assessment is that existing construction projects continue to progress, supporting ongoing demand for materials. <\/p>\n

\"AndrewAndrew Redding (left) with PM Christopher Luxon at the NZICC opening earlier this year. Photo \/ Michael Craig<\/p>\n

But rising fuel costs and broader cost inflation are leading to delays and, in some instances, cancellations of new projects, particularly within the commercial sector. <\/p>\n

If sustained, this trend is likely to weigh on group performance in the first half of FY27.<\/p>\n

Withdrawal from Moody\u2019s<\/p>\n

A company spokesman told the Herald the decision to withdraw from Moody\u2019s reflected the significant progress made in simplifying the business and capital structure. <\/p>\n

\u201cWith the sale of the construction division now settled and our net debt forecast to sit comfortably within our target range, we\u2019re operating with a more stable and straightforward capital structure,\u201d he said.<\/p>\n

\u201cImportantly, our intention to target investment-grade credit metrics hasn\u2019t changed. This is about removing an administrative layer that no longer serves a practical purpose, not a change in our financial discipline or approach to managing the balance sheet.\u201d<\/p>\n

More details about the debt would be out in the annual results in a few weeks, he said.<\/p>\n

Anne Gibson<\/a> has been the Herald\u2019s property editor for 26 years, written books and covered property extensively here and overseas.<\/p>\n

Stay ahead with the latest market moves, corporate updates, and economic insights by subscribing to our Business newsletter<\/a> \u2013 your essential weekly round-up of all the business news you need.<\/p>\n","protected":false},"excerpt":{"rendered":"After the settlement of the construction division divestment and the other sales, Fletcher will have significantly reduced its…\n","protected":false},"author":2,"featured_media":481799,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[171107,242133,1443,16391,31579,674,138,10666,5399,3930,305,18087,1132,111,139,69,667,780,1803,5977,102],"class_list":["post-481798","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-171107","tag-450m","tag-about","tag-asset","tag-boosted","tag-building","tag-business","tag-cuts","tag-debt","tag-fletcher","tag-have","tag-issued","tag-million","tag-new-zealand","tag-newzealand","tag-nz","tag-sales","tag-trading","tag-update","tag-which","tag-with"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/481798","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=481798"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/481798\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/481799"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=481798"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=481798"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=481798"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}