Fleetwood’s Underlying EBIT Jumps $29.5M as Revenue Hits $505M in FY25

Strong Financial Performance Amid Sector Challenges

Fleetwood Limited has reported a standout FY25 financial year, with revenue climbing 20.3% to $505.2 million and underlying earnings before interest and tax (EBIT) soaring to $37.7 million, a $29.5 million improvement over the previous year. This growth was underpinned by solid performances in its Community Solutions and Building Solutions divisions, which together offset ongoing difficulties in the RV Solutions segment.

The company’s disciplined approach to working capital management also contributed to a robust free cash flow of $27 million, nearly doubling the previous year’s figure. This financial strength allowed Fleetwood to declare a final fully franked dividend of 13.5 cents per share, bringing the total dividend for FY25 to 25 cents per share, a remarkable 400% increase on FY24.

Segment Highlights and Operational Insights

Community Solutions, anchored by the Searipple Village accommodation in Karratha, Western Australia, achieved an 84% occupancy rate, supported by long-term contracts with major clients such as Rio Tinto and SCJV. This segment delivered an EBIT margin of 51%, reflecting strong operating leverage and effective asset management, including upgrades to infrastructure and facilities.

Building Solutions experienced a 15% revenue increase driven by diversified projects across education, housing, mining, and commercial sectors. Notably, Fleetwood secured a 10-year panel contract renewal with the Queensland Department of Education and inclusion in the Western Australia Education panel, reinforcing its foothold in modular building solutions. The order book stood at $115 million at the end of August 2025, with a healthy pipeline exceeding $200 million in tenders.

Challenges and Restructuring in RV Solutions

RV Solutions continued to face headwinds, particularly in the original equipment manufacturer (OEM) caravan market, which contracted by 18% in FY25. Rising costs and competitive pressures from imports hindered price recovery efforts, resulting in a $9.1 million goodwill impairment and $1.9 million in restructuring costs. Despite these setbacks, the segment’s retail and aftermarket operations remained profitable, and management outlined plans for product rationalisation and cost discipline aimed at returning the business to profitability in FY26.

Strategic Outlook and Market Positioning

Looking ahead, Fleetwood is focused on optimizing its key assets and expanding panel work across education, housing, and commercial sectors to sustain high single-digit revenue and EBIT growth in FY26. The company plans to leverage its strong balance sheet and operational momentum to explore new opportunities in build-own-operate-transfer and build-to-rent models, particularly in the key worker accommodation and residential sectors.

While the RV Solutions segment faces uncertainty, the broader market for aftermarket products remains promising, supported by a substantial fleet of caravans and recreational vehicles across Australia and New Zealand. Fleetwood’s strategic emphasis on innovation, margin management, and customer experience positions it well to navigate evolving industry dynamics.