Fleetwood’s H1 FY26: $227.5M Revenue, $8.6M Net Profit, $4.85M Asset Sale
Fleetwood Limited reported a 16% decline in revenue for the half-year ended December 2025 but posted an 84% jump in net profit, driven by strong occupancy in its Community Solutions segment and strategic asset sales.
- 16% revenue decline to $227.5 million in H1 FY26
- 84% increase in net profit after tax to $8.6 million
- Strong Community Solutions occupancy at 95% in Searipple Village
- Sale of Northern RV Pty Ltd operations for $4.85 million
- On-market share buy-back of up to $5 million announced
Revenue Decline Masks Profit Growth
Fleetwood Limited, a key player in modular building and accommodation solutions across Australia and New Zealand, revealed its half-year results for the period ending 31 December 2025. The company’s revenue fell by 16% to $227.5 million, reflecting softer conditions in its Building Solutions and RV Solutions segments. However, beneath this headline figure, Fleetwood delivered a robust 84% increase in net profit after tax, reaching $8.6 million, signalling improved operational efficiency and cost management.
Community Solutions Drive Earnings
The standout performer was the Community Solutions segment, which saw revenue surge 37.6% to $46.1 million and EBIT rise 39% to $23.4 million. This growth was underpinned by a remarkable occupancy rate of 95% at the Searipple Village in Karratha, up from 71% the previous year, highlighting strong demand for worker accommodation in resource-rich regions. Similarly, Osprey Village in Port Hedland remained fully occupied with a waiting list, reinforcing the segment’s resilience.
Challenges in Building and RV Solutions
Conversely, the Building Solutions segment experienced a 26.6% revenue drop to $148.8 million, primarily due to weaker activity in New South Wales and project delays in Queensland. EBIT turned negative at -$1.6 million, down from a positive $7.1 million the prior year. Despite this, the order book grew to $157 million, suggesting a pipeline for recovery. The RV Solutions segment, impacted by restructuring and the closure of local manufacturing, reported an EBIT loss of $4.1 million but showed signs of returning to profitability post-restructuring.
Strategic Asset Sale and Capital Management
In a strategic move to streamline operations, Fleetwood completed the sale of Northern RV Pty Ltd’s operations for $4.85 million in February 2026, unlocking approximately $3.5 million in capital. The company expects to recognise a gain of around $1.4 million from this transaction. Fleetwood also announced an on-market share buy-back program of up to $5 million, reflecting confidence in its balance sheet and a commitment to returning value to shareholders.
Outlook and Dividend Policy
Looking ahead, Fleetwood maintains a positive outlook for its Community Solutions segment, with contracted occupancy at Searipple Village already at 96% for FY26 and 55% for FY27, with opportunities to increase further. Building Solutions is expected to see a 5-10% revenue decline for the full year but aims to improve margins through standardisation and efficiency gains. The company declared a fully franked interim dividend of 9.5 cents per share, adhering to its policy of paying out 100% of net profit after tax.
Bottom Line?
Fleetwood’s half-year results reveal a company navigating sector headwinds with strategic focus and operational resilience, setting the stage for a pivotal second half.
Questions in the middle?
- Can Building Solutions reverse its revenue decline and return to profitability in FY27?
- How will the RV Solutions segment perform post-divestment and restructuring?
- What impact will the on-market share buy-back have on shareholder value and stock liquidity?
