Fletcher Building (FBU) / FY21

Fletcher swings to $305m NPAT and halves gross borrowings on $889m OCF

A clean recovery on paper, but with HY21 contributing only 39.7% of full-year NPAT, the earnings shape is visibly second-half weighted.

Release date
18 August 2021
Published
21 April 2026

What changed

Revenue rose 11.1% to $8,120.0m and the group swung from a $265.0m pre-tax loss to a $433.0m pre-tax profit, with NPAT of $305.0m versus a prior $196.0m loss. Operating cash flow more than doubled to $889.0m from $410.0m, and with capex easing to $231.0m from $240.0m, pre-lease free cash flow lifted to $658.0m from $170.0m. Gross borrowings were cut to $857.0m from $1,791.0m, and disclosed net debt fell to $173.0m from $687.0m, even as cash balances declined to $666.0m from $1,104.0m. The full-year dividend rose to 30.0 cps (18.0 cps final) from 23.0 cps.

What matters

  • Deleveraging is the headline structural move. Gross borrowings down 52.1% and a net debt position of just $173.0m against $1.6b of liquidity materially changes the balance-sheet risk profile. The cash draw is not a weakness — it went into debt retirement, not working capital.
  • PBT is the cleaner read than NPAT. PBT swung by $698.0m versus a $501.0m NPAT swing; with FY20 loss-making, the prior effective tax rate is not comparable, and FY21's 26.8% effective rate is the better anchor for run-rate earnings.
  • Cash generation looks genuine. Pre-lease FCF of $658.0m covers the full-year dividend comfortably (roughly 37.5% of FCF), and FCF-to-NPAT of 215.6% reflects a balance-sheet-assisted recovery alongside earnings recovery rather than earnings outpacing cash.

Expectations

No forward-work metric, order book, or formal financial target was disclosed in the extracted release. The only shape context is the HY21 interim: HY21 delivered 49.1% of full-year revenue but only 39.7% of full-year NPAT, implying an H2 NPAT of roughly $184.0m versus H1's $121.0m — a visibly second-half weighted earnings profile. Without a stated FY22 target or backlog figure, the release does not support a specific forward trajectory; it supports only the observation that momentum accelerated into H2.

Quality of result

The operating recovery looks largely durable rather than one-off. Receivable days are flat at roughly 37 days, inventory fell 3.8%, capex-to-revenue dropped to 2.8% from 3.3%, and no non-recurring items were flagged in the extraction. That said, several supports to the headline should be noted: the NPAT swing is amplified by a low comparator; the FCF figure is pre-lease (post-lease FCF was not disclosed); and EBITDA and segment-level margins were not provided in the extraction, so margin durability cannot be independently tested. Cash conversion did not deteriorate — it improved sharply — but the $438.0m decline in cash is an allocation decision (debt reduction), not organic cash weakness.

Unresolved

  • No EBITDA or segment EBIT split was extracted, so the margin and mix driver of the revenue-to-PBT operating leverage is not visible.
  • No FY22 guidance, forward work, or stated medium-term target is disclosed, leaving run-rate sustainability an open question given the second-half-weighted shape.
  • Lease cash outflows and post-lease FCF are not disclosed, so the true covered-dividend ratio is approximate.
  • The extraction notes a historical "EBIT before significant items" non-GAAP basis but no company-wide reconciliation; the size and nature of any FY21 below-the-line items is not visible here.

This briefing cannot assess operational performance by segment, underlying margin mix, or the sustainability of volumes into FY22, because segment financials, EBITDA, and forward-work disclosures were not present in the extracted data.

Key metrics

← Swipe to view more
Metric FY21 FY20 Change
Revenue $8120m $7309m +11.1% ↑
Net profit after tax $305m −$196m +255.6% ↑
Net cash inflow from operating activities $889m $410m +116.8% ↑
Final dividend per share 18.0c 23.0c -21.7% ↓
Operating profit $541m −$116m +566.4% ↑
Profit before tax $433m −$265m +263.4% ↑
Cash and cash equivalents $666m $1104m -39.7% ↓
Total assets $8010m $8778m -8.7% ↓

Reference: annolyse.ai/briefings/fbu-fy21

Segment breakdown

← Swipe to view more
Segment Current revenue Prior revenue Current result Mix shift
Concrete $503m n/a

Reference: annolyse.ai/briefings/fbu-fy21

Analytical metrics

← Swipe to view more
Metric FY21 FY20 Context
Effective tax rate 26.8% n/m (loss period) prior loss period
FCF pre-lease $658.0m $170.0m +$488.0m
FCF / NPAT 215.6% -86.7% complementary conversion metric
Capex % revenue 2.8% 3.3%
Capex $231.0m $240.0m −$9.0m
Debtor days 37.3 37.3 +0.0 days
Trade debtors $829.0m $746.0m +$83.0m
Net debt $173.0m $687.0m −$514.0m
Gross borrowings $857.0m $1791.0m −$934.0m
Payout ratio vs NPAT 81.1%
Payout ratio vs FCF pre-lease 37.5% covered
ROE (annualised) 8.1% -5.5% Strengthening
HY21 share of FY21 revenue 49.1% Other half was 50.9%
HY21 share of FY21 NPAT 39.7% Other half was 60.3%
Profit from continuing operations $317.0m −$196.0m +$513.0m

Reference: annolyse.ai/briefings/fbu-fy21


This analysis was generated using Annolyse, an AI-powered tool that analyses NZX/ASX company announcements. The analysis is based on available company filings and standard Annolyse calculations. This is general information only and does not constitute financial advice. The analysis may contain errors. Always read the original company filings and consult a licensed financial adviser before making investment decisions.

Metric context

Trajectory before this result

A compact view of the company's recent revenue and margin path, derived from the same metrics history that powers the company page.

FBU revenue trajectory

Revenue context before the current result.

FBU EBITDA margin

Earnings margin across covered periods.

Appendix

Reference material

Company materials considered in this briefing.

Current period

Prior comparable period

Amendment to 2020 Annual Report

FY20 / financial report

Interim context

2021 Interim Financial Results

HY21 / financial report

News Release HY21

HY21 / media release

Results Announcement

HY21 / results announcement

Email updates

Want briefings like this for the next reporting season?

Get the next Annolyse briefing by email when it is published.