- Modular building company Fleetwood (FWD) posts FY23 results, highlighting a strong performance in its earnings department
- FWD reported a total revenue of $410.6 million
- While this is down slightly on FY22 the real turnaround result is in the company’s earning metrics
- EBITA came in at $4.2 million, while pre-tax profit totalled 2.6 million
- The company also has renewed a key contract with Rio Tinto, building accommodation for the miner
- Shares are up 2.5 per cent, trading at $2.07 at 2:39 pm AEST
Modular building company Fleetwood (FWD) has released its FY23 results, reporting a total revenue of $410.6 million.
The company operates in three main commercial areas: private construction serving the education, corrections, housing, and mining industries; the operation of community accommodation villages, and the distribution and manufacture of recreational vehicle (RV) assets.
Earnings (EBITA) amounted to $4.2 million, while pre-tax profit reached $2.6 million.
Interestingly, while the company’s FY23 revenue was lower than FY22, its performance in the earnings department is particularly impressive.
In FY22, Fleetwood posted a loss of $12.3 million, with net profit attributable to members’ losses even steeper at $47.4 million.
However, in the twelve months from June 30, 2022, to June 30, 2022, Fleetwood has evidently turned the ship around.
The order book volumes for building solutions grew to $127 million at the end of FY23, up from $87 million at 1HFY23.
The company also rebuilt its management team and posted earnings before tax of $10.2 million, attributed to strong shutdown performance in its community village operations, “ahead of major project demand.”
Fleetwood’s RV sales were impacted by a weaker consumer discretionary environment, resulting in earnings before tax of $6.9 million, a decrease from previous years.
“Significant opportunities remain for all Fleetwood businesses in FY24, and we look forward to delivering on these for the benefit of all shareholders,” FWD Non-Executive Chairman John Klepec said.
FWD CEO and Managing Director Bruce Nicholson echoed Mr Klepec’s sentiments.
“Community Solutions had a solid year with EBITA up 23 per cent on FY22 … a highlight of the year was the June 2023 announcement of additional rooms booked by Rio Tinto under its accommodation agreement which is expected to generate a further $100 million to $120 million in revenue until the end of the contract term in April 2027.”
Notably, four brokers maintain a ‘buy’ rating on the stock, with one recommending a ‘hold.’ No brokers have rated Fleetwood as a ‘sell.’
Year-to-date share price performance has risen by 45 per cent, and the company is outperforming the ASX200 by 28.06 per cent as of lunchtime on Thursday.
FWD shares were up 2.5 per cent, trading at $2.07 at 2:39 pm AEST.
