Slide 1: Half Year Results to 31 December 2025
Half Year Results to 31 December 2025 18 FEBRUARY 2026 Golden Bay – Portland Manufacturing Plant
Slide 2: Important Information
Important Information This presentation has been prepared by Fletcher Building Limited and its group of companies (“Fletcher Building”) for informational purposes. This disclaimer applies to this document and the verbal or written comments of any person presenting it. This presentation provides addi
Slide 3: Agenda
Agenda 1H FY26 Results 1. 1H FY26 at a glance Andrew Reding, Managing Director & CEO 2. Operating performance Andrew Reding, Managing Director & CEO 3. Financial results Will Wright, CFO 4. Outlook Andrew Reding, Managing Director & CEO 3 | Half Year Results Presentation | February 2026 | Fletcher B
Slide 4: 1H FY26 at a glance
1H FY26 at a glance Andrew Reding, Managing Director & CEO
Slide 5: 1H FY26 key takeaways
1H FY26 key takeaways ❶ A split performance, with a better Q2 not enough to offset a difficult Q1 ❷ Core performed relatively well, making up for Construction and Residential weakness ❸ Disciplined capital allocation ❹ Further cost out initiatives implemented, with benefits to flow in 2H FY26 ❺ Prog
Slide 6: Turnaround plan
Turnaround plan Urgent priorities have been actioned decisively and there is a clear path of continuous improvement ahead Implemented Short term Medium term Sale of Construction and Felix Settle Construction and Felix Fully implement new operational Street announced Street divestments model
Slide 7: Construction divestment progress
Construction divestment progress Divestment of Construction Division announced on 20 January, regulatory approvals underway • Headline sale price of $315.6m with a potential increase to $334.1m pending the final outcome of certain key contracts • A significant step forward in delivering a simplified
Slide 8: 1H FY26 Financial summary
1H FY26 Financial summary Core businesses performing well despite tough Q1 trading conditions with continuing operations largely flat Continuing Revenue1 operations EBIT1,2 EBIT margin1,2 Net profit1 $2,866m $145m 5.1% $45m 0.5% lower than 1H FY25 $2m lower than 1H FY25 vs 5.2% in 1H FY25 vs $(88)m
Slide 9: 1H FY26 operational highlights
1H FY26 operational highlights Firth new flagship batching plant at 882 Great South Road opened - supporting continuing volume and share growth in the Auckland market Golden Bay resilient performance, with strong discipline on energy costs. Coal substitution rates continue to increase, up a furt
Slide 10: Operating performance
Operating performance Andrew Reding, Managing Director & CEO
Slide 11: Divisional performance - 1H FY26
Divisional performance - 1H FY26 Light Building Products continues to perform well, offsetting weakness in Residential & Development and Construction Light Building Heavy Building Residential & Products Materials Distribution Development Construction Gross revenue1 $1,100m $1,045m $783m $211m $536m
Slide 12: New Zealand volumes
New Zealand volumes Light Building Products and Distribution volumes have been flat or modestly positive, while Heavy Building Materials volumes remain flat to down 1H FY26 Commentary NZ PRODUCT VOLUMES Rolling 12m average quarterly volumes, Q4 FY19 = 100 • Winstone Wallboards volumes have remained
Slide 13: Australian volumes
Australian volumes Volumes largely positive across Australian business units 1H FY26 Commentary AUS PRODUCT VOLUMES Rolling 12m average quarterly volumes, Q4 FY19 = 100 • Laminex Australia volume up 6.6% vs 1H FY25, 120 driven by growth in residential and renovation markets and competitor supply iss
Slide 14: Residential and Development
Residential and Development Volumes in the Residential and Development Division have been lower than anticipated 1H FY26 Commentary VOLUMES – Residential and Apartment units settled (Taken to Profit) 6mth volumes • 1H FY26 Take to Profit (TTP) of 223 residential 600 and apartment units is 81 units (
Slide 15: Financial results
Financial results Will Wright, CFO
Slide 16: Income Statement
Income Statement Net earnings from continuing operations positive for the first time since June 2023, with cost out initiatives and market share gains partly offsetting the impact of volume declines and lower Residential sales INCOME STATEMENT DEC 2025 DEC 2024 • Revenue was broadly aligned with pcp
Slide 17: Discontinued operations
Discontinued operations The Construction Division has been presented as a discontinued operation FINANCIAL PERFORMANCE & CASHFLOW DEC 2025 • As at 31 December 2025, the Construction Division met the NZ$m 6 MONTHS criteria to be classified as held for sale and the Division has Revenue 519 therefore b
Slide 18: 1H FY25 to 1H FY26 EBIT bridge
1H FY25 to 1H FY26 EBIT bridge Volume and cost inflation impacts offset by cost out initiatives and market share gains EBIT bridge 1H FY25 to 1H FY26: Key drivers of YoY change $m Increase Decrease Total 180 167 160 147 11 145 (20) 15 140 45 (5) (20) (7) 120 100 (41) 80 60 40 20 - 1H FY25 Constructi
Slide 19: Balance Sheet
Balance Sheet Strong focus on working capital and lease management, with Construction divestment to result in greater resilience once completed BALANCE SHEET 31 DEC 2025 31 DEC 2024 30 JUN 2025 • R&D funds increased +$144m, with $151m of land NZ$m purchases during the period. Further purchases of In
Slide 20: Cash flows
Cash flows Strong operating cash flow of $156m (up 79% on 1H FY25) despite $151m of residential land purchases and reduced receipts from customers CASH FLOWS DEC 2025 DEC 2024 • Key components of net cash flows from operating activities NZ$M 6 MONTHS 6 MONTHS included; Cash flow from operating activ
Slide 21: Central costs
Central costs Increased operating discipline reflected in significantly lower corporate and divisional costs CENTRAL COST SUMMARY DEC 2025 DEC 2024 • Group technology costs decreased materially post restructure NZ$m 6 MONTHS 6 MONTHS and decentralisation initiatives Group • Corporate overhead costs
Slide 22: Working capital performance
Working capital performance Working capital volatility has improved and is more in line with long term averages, with significant improvements expected with portfolio simplification • Over the past two years, trading cash flows and working capital have been relatively volatile requiring the Group to
Slide 23: Capital allocation
Capital allocation Capex and Investments of $161m in 1H FY26 flat compared to 1H FY25 CAPEX & INVESTMENTS BREAKDOWN • Investments includes contributions into Winstone $m Aggregates JVs 180 • Stripping (removing overburden to uncover aggregate resource) costs of ~$4m in Winstone Aggregates and 160 Go
Slide 24: Management of lease portfolio
Management of lease portfolio Reduction of $172m in lease liabilities which will further reduce post divestment of Construction • Total lease liabilities are ~$1.3bn and represent ~52% of Group gross debt Lease Liabilities As at As at • Lease terms were re-assessed and materially shortened across th
Slide 25: Funding mix
Funding mix Continuing to make progress on simplifying funding structure, and implementing a more efficient capital model aligned with current operating and strategic priorities TOTAL FACILITIES MATURITY PROFILE As at 31 DECEMBER 2025, $m • Undrawn credit lines of $750m and cash on hand of $62m as a
Slide 26: Net Debt bridge
Net Debt bridge Net Debt managed well despite significant Residential land purchases, FY26 full year expected to be flat compared to FY25 (excluding proceeds from Construction and property sales) NET DEBT (30 Jun 2025 – 31 Dec 2025) $m Increase Decrease Total 51 1,164 132 (1) 999 139 (3) (20) 161 12
Slide 27: Outlook
Outlook Andrew Reding, Managing Director & CEO
Slide 28: FY26F Outlook
FY26F Outlook Operating volumes continue to be subdued, impacting operating leverage and profitability • New Zealand market volumes were largely flat in Q2 FY26 and overall remain subdued with meaningful improvements not expected until calendar year 2027 • Volumes in Australian businesses are mixed
Slide 29: Appendix
Appendix
Slide 30: Fletcher Building at a glance
Fletcher Building at a glance A leading building materials manufacturer and distributor across New Zealand and Australia with complementary development & construction businesses • NZX and ASX listed (FBU), with market cap of ~$4.0b • FY25 Revenue of $7b and EBIT1 of $390m • Operates through a portfo
Slide 31: Our medium-term strategy
Our medium-term strategy At our Investor Day in June we presented a clear plan for improvement Medium term focus on manufacturing and distribution of building products and materials Focus on high Empower our Resilient capital 1 Urgent action 2 3 4 performance leaders structure • Clear plan with imme
Slide 32: Light Building Products
Light Building Products 6 months ended Change from 6 months ended 31 December 2025 31 December 2024 • Winstone Wallboards - Revenue ~2% higher than pcp with product margins flat due to (1H FY26) (1H FY25) continued operational excellence improvements combined with favourable gypsum price movements m
Slide 33: Heavy Building Materials
Heavy Building Materials 6 months ended Change from 6 months ended 31 December 2025 31 December 2024 • Firth: Volumes were robust during the half (broadly flat YoY) with share growth (1H FY26) (1H FY25) offsetting a subdued and highly competitive market. During the half, Firth’s new flagship Aucklan
Slide 34: Distribution
Distribution 6 months ended Change from 6 months ended 31 December 2025 31 December 2024 (1H FY26) (1H FY25) • 1H FY26 saw the residential construction market continuing to perform below the activity levels experienced in 1H FY25 resulting Gross revenue $783m - flat from $780m in continued pressure
Slide 35: Residential and Development
Residential and Development 6 months ended Change from 6 months ended 31 December 2025 31 December 2024 (1H FY26) (1H FY25) • 223 units Taken To Profit (TTP), 81 units (-27%) lower than 1H FY25 Gross revenue $211m 12% from $240m • EBIT for 1H FY26 was $12m, $2m lower than the 1H FY25, with the mar
Slide 36: Construction
Construction 6 months ended Change from 6 months ended 31 December 2025 31 December 2024 • The Construction Division’s 1H FY26 performance has been impacted by (1H FY26) (1H FY25) delays in project work coming to market and by slower-than-expected Gross revenue $536m 34% from $814m commencement of
Slide 37: FY25 Significant Items
FY25 Significant Items Total Significant Items of $88m in 1H FY26, primarily construction related provisions 1H FY26 Significant Items ($m) • Significant Items from continuing operations • ~$7m, primarily comprising PIFWA-related legal fees of ~$4m, a CSP inventory write- From Continuing operations
Slide 38: Divisional breakdowns
Divisional breakdowns NZ$m Equity Reval3 and EBITDA Gross External Gross Other income Operating Accounted other gains EBIT before before Sig Revenue Revenue* Margin* Overheads1 / (expenses)2 Profit Earnings / (losses)4 Sig Items Sig Items+ EBIT DD&A EBITDA Items For the six months ended 31 December
Slide 39: Divisional EBIT breakdowns
Divisional EBIT breakdowns Divisional EBIT (before Sig Items) (NZ$m) 6 months to DEC 2025 6 months to DEC 2024 Wood & Panels 91 86 Water 9 12 Insulation 13 13 Total Light Building Products EBIT (excl divisional costs) 113 111 Upstream construction materials1 36 34 Downstream construction materials 1
Slide 40: Divisional sector revenue exposures
Divisional sector revenue exposures Estimated Divisional breakdown (1H FY26) NZ Residential NZ Commercial NZ Infrastructure AU Residential AU Commercial AU Infrastructure Wood & Panels 32% 11% - 39% 18% - Water 5% 1% 11% 34% 5% 44% Insulation 14% 14% - 50% 21% - Total Light Building Products 24% 9%
Slide 41: Credit metrics
Credit metrics DEC 2025 JUN 2025 Credit metrics & covenants 12 MONTHS 12 MONTHS Pre-IFRS 16 Net Debt (target $400m - $900m) $1,164m $999m Senior Leverage Ratio (covenant 3.25x from FY26) 2.1x 1.6x Senior Interest Cover Ratio (covenant 2.25x, moving to 2.75x in 2H27) 4.1x 3.9x Gross Leverage Ratio (M
Slide 42: Iplex Australia & Silicosis
Iplex Australia & Silicosis House remediations and pipe replacements building momentum, no change to provisions Iplex • As of 31 December 2025, A$22 million (NZ$25 million) of the total A$155 million Iplex Industry Response1 remediation (NZ$170 million) provision amount has been utilised, including