Fleetwood Ltd (ASX:FWD) H1 2025: Revenue Surge, EBIT Growth, and Dividend Hike

Fleetwood Ltd (ASX:FWD) reported impressive results for the first half of 2025, with significant revenue growth and a substantial increase in earnings. The company's strategic focus on Building Solutions and Community Solutions has contributed to its long-term financial stability and growth, despite challenges faced in the RV Solutions segment.



Revenue Growth and EBIT Improvement

Fleetwood Ltd's revenue grew by 19% due to contract wins in the Building Solutions segment and 71% occupancy in the Community Solutions segment. Earnings Before Interest & Taxes (EBIT) surged by 65% to $10.4 million, while Underlying EBIT nearly tripled compared to the first half of FY '24. Net Profit After Tax (NPAT) increased by 18% to $4.7 million (Source: Fleetwood Ltd ASX Announcement, Half Year FY25 Investor Presentation).



Dividend Increase and Cash Flow

The company declared a fully franked dividend of $11.5 per share, nearly five times the previous year's first half dividend. This significant dividend increase is a testament to the company's financial stability and growth. Fleetwood Ltd also reported a free cash flow of $21.6 million with a closing cash position of $57.5 million (Source: Fleetwood Ltd ASX Announcement, Half Year FY25 Investor Presentation).

Segment Performance

The Community Solutions segment showed strong performance with EBIT of $16.8 million on $33.5 million of revenue, driven by high occupancy rates. The Building Solutions segment saw EBIT more than double to $7.1 million, supported by a strong order book and improved project execution (Source: Fleetwood Ltd ASX Announcement, Half Year FY25 Investor Presentation).



Challenges and Outlook

The RV Solutions segment faced challenges due to cost-of-living pressures, resulting in a $6 million impairment and a $1.9 million restructuring cost. The company's strategic review of the RV Solutions segment highlighted ongoing challenges in consumer discretionary spending. However, the New South Wales government's modular taskforce has not shown significant progress, limiting opportunities in that region (Source: Fleetwood Ltd ASX Announcement, Half Year FY25 Investor Presentation).

In conclusion, Fleetwood Ltd's strong performance in the first half of 2025 is driven by its strategic focus on Building Solutions and Community Solutions. The company's revenue growth, EBIT improvement, dividend increase, and robust cash flow position demonstrate its financial stability and growth potential. Despite challenges in the RV Solutions segment, Fleetwood Ltd's diversified revenue streams and strong segment performance position it well for continued success.