‘Market turned down more quickly ... more deeply’: Fletcher CEO Andrew Reding on climbing losses

New Fletcher Building CEO Andrew Reding. Photo / NZSA

“The market turned down more quickly and more deeply than we or our external customers had anticipated,” said the new Fletcher Building boss, Andrew Reding, on climbing losses.

Fletcher announced a $134 million net loss after tax for the December 31, 2024 half-year, up on the previous $120m net loss.

Losses climbed partly due to the disastrous Perth leaky pipe problems after Fletcher’s Iplex finalised and signed a $170m provision in this 2025 financial year in what it called the Western Australian plumbing industry response.

Reding, the group chief executive and managing director, only started in September. Asked about his first few months, he said: “I’m loving it.”

But Reding also told of how hard the market is now and of that sharper, deeper downturn.

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He had worried before beginning that a strategic review focus could be lost, he said of plans to change Fletcher.

But that was not the case.

Fletcher is undergoing a cost-reduction programme across the group to “resize to market”, according to its presentation released with the result.

The company has cut debt from $1.7 billion to $1.1b and Reding cited the new permanent chairman Peter Crowley and a refreshed board as signs of change.

Horizon by SkyCity is between TVNZ and the NZICC. It is in the block between Hobson St and Nelson St in Auckland's CBD. Photo / Michael Craig

But he also said that for the full year to June 30, 2025 the company expected materials and distribution market volumes to be 10% to 15% lower than in 2024.

Fletcher isn’t paying shareholders dividends.

On the New Zealand International Convention Centre (NZICC), Reding said Fletcher was now in the complex commissioning phase. To give an idea of size, the building is 32,000sq m and seven levels. It has 450km of fibre optic cabling, he said.

Prior to the October 2019 fire, 4.8 million “man-hours” were spent building it. Post-fire, 9.4 million “man-hours” had been spent on it, Reding said.

The centre work was “substantially completed” and the expected handover was in 2H25.

Reding indicated that Fletcher would meet targets announced last year, pre-June 30, 2025.

That is despite SkyCity Entertainment Group this month blaming Fletcher for delays and saying it could not open the NZICC till next February.

"That's the last of that s***," wrote a disappointed Perth homeowner after pipes manufactured by Fletcher Building's Iplex were removed from his home.

Reding’s presentation said Fletcher’s response to the Perth leaky pipe issues had been “finalised and signed, A$155m ($170m) provision taken in HY25″.

Half of Fletcher’s revenue is rated towards residential construction in New Zealand and Australia.

The decline in the residential sector was greater than Fletcher had suffered in the global financial downturn, he said.

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Fletcher has lodged a defence on action being brought by the Commerce Commission against Winstone Wallboards. “We have a strong case,” Reding’s presentations said.

On silicosis, Laminex Australia and other engineered stone manufacturers, distributors and fabricators across the Tasman were subject to silica-related personal injury claims. Laminex had settled the majority of those brought against it to date. Estimating the number of costs of future silica-related personal injury claims was subject to uncertainties and assumptions.

Australian operations made gross revenue of $924m, down on the previous $1.05b.

Construction had revenue of $814m, up on the previous $699m while residential and development made $240m, which was also up on the previous $351m.

Building products produced revenue of $663m, down on $703m previously while concrete made $536m, compared to $567m previously. Distribution made $780m revenue, down on $836m previously.

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