Auckland-based Fletcher Building reported a decline in light building products volumes for the first quarter of the 2025-26 financial year, compared to the same period last year. However, the company noted that margins in this segment remained stable. In contrast, heavy building materials experienced a more significant drop in volume, accompanied by a further decline in margins. Fletcher Building is a large construction and building materials company. It operates across New Zealand, Australia, and the South Pacific.
In response to the challenging market conditions, Fletcher Building is implementing a $NZ100 million cost-cutting program. The company anticipates realising $NZ50 million ($44 million) in benefits from this initiative during the second half of the 2025-26 financial year. The full annualised savings from the cost reduction program are expected to be achieved in the 2026-27 financial year.
Chief Executive Andrew Reding commented on the cost-cutting measures, stating that the program is primarily focused on streamlining back-office operations and improving efficiencies. The goal is to maintain frontline operational capabilities while partially offsetting the negative impact of adverse market conditions on the company’s earnings.
