Fleetwood Limited has reported a remarkable 284% increase in net profit after tax for FY25, alongside a 400% rise in dividends, signaling strong momentum across its modular building and accommodation segments.
- Net profit after tax soars 284% to $14.6 million
- Underlying EBIT climbs 360% to $37.7 million
- Fully franked dividends up 400% to 25 cents per share
- Building Solutions revenue grows 15%, supported by $115 million order book
- RV Solutions faces short-term challenges but aims for FY26 profitability
Robust Financial Performance
Fleetwood Limited has delivered an impressive financial turnaround in FY25, posting a net profit after tax (NPAT) of $14.6 million, a 284% increase compared to the previous year. This surge was driven by a 360% rise in underlying earnings before interest and tax (EBIT) to $37.7 million, reflecting the company’s successful execution of its strategic initiatives.
The company’s free cash flow also improved significantly, reaching $27 million, up $29.7 million from FY24, while closing cash balances rose to $51 million. These strong cash metrics underpin Fleetwood’s enhanced financial flexibility and capacity for reinvestment.
Segment Highlights and Strategic Growth
Fleetwood’s Community Solutions segment demonstrated resilience with an 84% occupancy rate at Searipple Village in Karratha, a key asset benefiting from long-term contracts and regional demand linked to oil, gas, and energy projects. Meanwhile, Building Solutions recorded a 15% revenue increase, bolstered by a robust $115 million order book and over $200 million in tenders. This growth reflects the division’s diversification across housing, education, mining, and defence sectors, alongside improved project management practices.
Conversely, the RV Solutions segment continued to face headwinds, particularly in the original equipment manufacturer (OEM) market, where demand has shifted towards lower-priced imports. However, the aftermarket segment remains resilient, and the company expects RV Solutions to return to profitability in FY26.
Capital Management and Shareholder Returns
Fleetwood’s capital management strategy included $6.4 million in capital expenditure, notably $4 million invested in upgrading Searipple Village facilities. The company also completed share buy-backs, acquiring and cancelling over 1.8 million shares during FY25. Reflecting confidence in future earnings, the Board declared a fully franked final dividend of 13.5 cents per share, bringing the full-year dividend to 25 cents per share; an extraordinary 400% increase from FY24.
The Board confirmed its dividend policy to pay 100% of net profit after tax in FY26, signaling a commitment to returning value to shareholders while maintaining balance sheet strength.
Outlook and Strategic Focus
Looking ahead, Fleetwood’s outlook remains positive. Community Solutions is well positioned to capitalize on ongoing projects in the Pilbara region, with contracted occupancy at Searipple Village holding steady at 82%. Building Solutions anticipates continued growth supported by its strong order book and long-term panel agreements. Although RV Solutions faces a subdued short-term environment, its medium to long-term prospects are underpinned by a large installed base driving aftermarket demand.
Managing Director and CEO Bruce Nicholson highlighted the disciplined execution of the company’s Build, Transform, and Grow strategy as key to the strong results and expressed optimism about future opportunities.
Bottom Line?
Fleetwood’s FY25 results set a powerful foundation, but the market will watch closely how RV Solutions navigates its turnaround in FY26.
Questions in the middle?
- Can RV Solutions overcome OEM market challenges to sustain profitability?
- How will Fleetwood balance aggressive dividend payouts with reinvestment needs?
- What impact will ongoing capital upgrades at Searipple Village have on long-term occupancy and returns?