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Fletcher Building has forecast $573 million to $781m of “significant items” which will hit its bottom line this financial year. 

In its investor day presentation to the NZX today, the company listed mounting losses which would impact the full-year result to June 30, 2025. 

The result will be issued in August. 

Before significant items, the company said it expects earnings before interest and tax (ebit) of $386.4m to $391.4m for the year to June 30, 2025. 

Some losses were known, some not, and institutional investors are already saying this has lowered profit expectations. 

As a result of the strategic review announced by CEO Andrew Reding, additional non-cash significant items of about $250m and $440m are anticipated. 

Cash significant items of $50m to $60m are expected. 

These will primarily relate to restructuring and redundancy costs, goodwill and brand impairments, closure costs and the write-off and provision for onerous contracts associated with enterprise resource planning or software projects, Fletcher said today. 

In February, when it announced its December half-year, the company flagged $251m of significant items from Iplex Australia pipes ($177m) and the disposal of Tradelink ($58m). 

This month, it announced an expected provision of about $12m to $15m on the increased cost to complete the New Zealand International Convention Centre. 

About $10m to $15m is expected to be incurred defending the construction legacy and Western Australia plumbing issues, today’s announcement said. 

“Altogether the total significant items to be announced as part of the FY25 results are expected to be between about $573m and $781m,” today’s statement said. 

One institutional investor expressed surprise at the figures given today. 

“Significant items are chunky: redundancy costs, goodwill and brand impairments, closure costs and write off and provision for onerous contracts associated with software projects,” he said. 

Anne Gibson has been the Herald‘s property editor for 25 years, written books and covered property extensively here and overseas.