Fletcher Building has confirmed it is considering selling its construction division — including Higgins, Brian Perry Civil and Fletcher Construction Major Projects — following strong inbound interest and the completion of a strategic review.
The NZX- and ASX-listed firm says it has appointed financial advisers and formally commenced exploring divestment options, though no final decision has been made.
“Given the quality and strong recent performance of our construction businesses, and the role they will play in New Zealand’s growing infrastructure pipeline, we were not surprised to receive inbound interest for them, which has motivated us to test whether there are attractive divestment options,” Fletcher Building managing director and chief executive Andrew Reding says.
“No decision has been made to sell at this time, and we will carefully consider the value of any options presented from this process before deciding whether to move ahead.”
The move follows a June 11 statement from the company noting ongoing interest in its business units after the strategic review was first announced.
The company has forecast FY25 EBIT (before significant items) of $370m to $375m — or $386.4m to $391.4m when excluding the $16.4m loss linked to its NZTA Peka Peka to Ōtaki settlement.
Fletcher Building also flagged between $573m and $781m in total FY25 significant items, including $177m for Iplex Australia pipes, $58m for the Tradelink disposal, and up to $440m in non-cash items tied to restructuring, impairments, and ERP write-offs.
