Fleetwood (ASX:FWD) used its FY26 first-half results call to highlight higher earnings, a capital management reset anchored by a fully franked interim dividend and a new buyback, and a sharply improved outlook for its Community Solutions business as occupancy at its Searipple accommodation village surged.
Chairman John Klepec introduced new CEO Andrea Pidcock, who said she was in her fourth week in the role and had spent her early tenure meeting teams, visiting operations and customers, and assessing opportunities and challenges. CFO Cate Chandler provided the financial and segment detail.
First-half earnings improve as Searipple lifts, despite Building Solutions softness
Net profit after tax rose to AUD 8.6 million, up AUD 3.9 million (an 84% increase) from the prior corresponding period. Underlying EBIT was AUD 18.5 million, up AUD 0.2 million year-over-year, with management noting that underlying EBIT excludes restructuring and impairment items related to the closure of RV Solutions manufacturing and site consolidation in Victoria. The company cited AUD 4.8 million of RV Solutions restructuring costs in the half.
Management said the earnings mix shifted meaningfully across divisions:
- Community Solutions EBIT increased AUD 6.6 million, driven by Searipple occupancy rising to 95% from 71% in the prior period.
- Building Solutions EBIT declined to AUD 8.7 million, attributed to materially softer revenue in New South Wales and delays to project commencements in Queensland.
- RV Solutions returned to underlying profitability, with EBIT improving AUD 1.4 million, which management linked to the closure of manufacturing operations and better aftermarket performance.
- Corporate costs fell AUD 0.9 million due to higher income related to the closure of a historical share scheme and lower share-based payment expense.
Dividend reaffirmed and a new AUD 5 million buyback announced
The board reaffirmed Fleetwood’s dividend policy to pay 100% of NPAT and declared a fully franked interim dividend of AUD 0.095 per share. Chandler noted the interim dividend was AUD 0.02 per share lower than the prior year, explaining that the previous interim dividend had “ignored” the non-cash impact of a AUD 6 million goodwill impairment on NPAT.
Fleetwood also announced an on-market share buyback of up to AUD 5 million over the next 12 months, which management said was supported by the company’s balance sheet and outlook.
On cash flow, Chandler said free cash flow for the half was negative AUD 7.8 million, primarily due to working capital outflows. She said this is expected to unwind in the second half as Building Solutions project cycles and progress payments normalize. The company ended the half with AUD 30.7 million in cash.
Community Solutions: tight Pilbara accommodation market supports occupancy
Fleetwood emphasized Community Solutions as a standout performer. Searipple’s 95% first-half occupancy was driven by contracted room nights from three major customers: Rio Tinto, Woodside, and SCJV. Chandler noted that EBIT operating leverage was “slightly impacted” by higher physical occupancy and fewer vacant rooms, as accommodation options in the Karratha region tighten.
Capital expenditure during the half included AUD 3.1 million in net capex focused on Searipple upgrades, including Wi-Fi, laundries, and common facilities. Chandler said the upgrades strengthened the facility’s competitiveness in a tight market.
Management said contracted occupancy for FY26 is 96%, with “some further room availability in June.” Looking further out, Pidcock said FY27 already has 55% of room nights contracted, and the company expects additional opportunities given ongoing activity and limited supply.
During Q&A, management provided additional context on FY27 contracted occupancy. In response to questions, the team said the 55% figure includes an assumption that Rio Tinto leaves in May and June after its contract runs to April 2027, and they cited a contracted figure of about 64%–65% for the first half of FY27. Klepec cautioned against assuming occupancy “falls off a cliff” at contract end, saying demand would need to go somewhere in the region and describing the rooms as “ours to lose effectively.”
Fleetwood also discussed competitive dynamics in Karratha, acknowledging awareness of other accommodation developments and saying it monitors demand drivers, including planned works and development approvals. Pidcock said the company has developed prototype rooms for major customers “should they wish to underpin a longer-term contract.”
At Osprey Village in Port Hedland, management said occupancy remains full with a waiting list of 40 to 50 tenants. Pidcock noted Fleetwood manages Osprey but does not own the site, and said broader affordable housing opportunities may align with Building Solutions capabilities, with discussions occurring with local councils.
Building Solutions: NSW weakness persists, but order book and tender pipeline build
Building Solutions faced a softer first half as New South Wales underperformed and Queensland project starts were delayed, though management said the timing issue in Queensland has since resolved. Chandler said all other states delivered double-digit revenue growth, reflecting Fleetwood’s geographic and sector diversification.
While gross margins improved slightly, the lower revenue meant fixed costs were not offset, pressuring profitability. Chandler and Pidcock said they are focused on simplifying and standardizing operations, including exploring centralization of support services and making portions of the cost base more variable.
The division’s order book at the end of December was AUD 157 million, up from AUD 137 million a year earlier and AUD 100 million at June 2025. Management also cited AUD 200 million of tenders submitted. During Q&A, the company added it had been awarded an additional AUD 15 million (SP3) for a BHP Olympic Dam project in South Australia.
Pidcock said Fleetwood expects the second half to be stronger than the first half, while guiding that full-year revenue is expected to be down around 5%–10% versus FY25.
RV Solutions: manufacturing closure completed, NRV sale to unlock capital
In RV Solutions, management said the closure of local manufacturing and site consolidation in Victoria has been completed, with no further restructuring costs expected. Chandler noted that manufacturing operations had been loss-making, and said losses in the first four months of FY26 alone were AUD 0.9 million.
Pidcock said Fleetwood completed the sale of the Northern RV Plumbing Services business in February for AUD 4.85 million. She said the sale will unlock around AUD 3.5 million in capital, and that the second half will record a “residual” profit on sale.
The company retained Camec as a distributor of parts and accessories, and management said the aftermarket performed profitably across all branches, supported by product innovation and an installed base of “over 1 million RVs” across Australia and New Zealand. Management also expects further decline in the local OEM market due to import pressure. In Q&A, Chandler said that with manufacturing closed and the plumbing business sold, Camec is now a pure-play distributor/retailer and that Fleetwood would consider an exit if there were a reasonable offer from a more natural owner.
Pidcock closed the call by thanking shareholders and saying she looked forward to meeting investors in coming weeks and months.
About Fleetwood (ASX:FWD)
Fleetwood Limited engages in the design, manufacture, and sale of modular accommodation units in Australia and New Zealand. It operates through three segments: RV Solutions, Building Solutions, and Community Solutions. The company also engages in the operation of accommodation villages; develops and commercialize keyless locks and energy management systems; and manufacture, installation, and distribution of recreational vehicle parts and accessories. It offers accommodation solutions for resources, education, affordable housing, mining, and corrections sectors; and provides caravan plumbing and electrical services, as well as supplies related parts.
