Fleetwood (ASX: $FWD) FY24 Trading Update

Fleetwood Limited (ASX: $FWD) has provided a trading update for the full year ending 30 June 2024, highlighting challenging market conditions in RV and Building Solutions. The company anticipates full year earnings between $7.0M to $8.5M EBIT, below the current analyst consensus. Fleetwood expects to release its audited results for the full year on 29 August 2024.

Executive Commentary on FY24 Trading Update

Today's announcement is disappointing, particularly as this result has come as we were starting to see signs of the turnaround in line with our Build, Transform & Grow strategy. Whilst some of the market conditions are outside of our control, we are working hard on addressing those within our control. FY25 will be underpinned by the Community Solutions business that provides a solid foundation that we intend to capitalize upon by converting the opportunity in the Building Solutions market and optimizing the remaining capacity at Searipple. Both Federal and State Governments across Australia have committed significant budgets to the housing crisis however this is yet to translate to any material award of orders to market participants which is particularly frustrating given our current capacity to provide a further 1,000 homes, Fleetwood stands ready to deliver. The Board has implemented a share buy-back as we see significantly more value in our shares than the Company's current share price reflects. At this point in time, we also consider this a good use of Fleetwood's capital and continue to be committed to paying 100% of NPAT as fully franked dividends.

Summary of FY24 Trading Update and Outlook

Fleetwood (ASX: $FWD) has faced challenging market conditions in RV and Building Solutions, impacting its FY24 earnings outlook. The company anticipates earnings between $7.0M to $8.5M EBIT, below the current analyst consensus. Despite the challenges, Fleetwood remains focused on its Build, Transform & Grow strategy, aiming to capitalize on the solid foundation provided by the Community Solutions business in FY25. The company is also optimistic about the opportunities in the Building Solutions market and the potential to optimize capacity at Searipple. Fleetwood's decision to undertake an on-market share buy-back of up to $5M reflects its confidence in the value of its shares and commitment to efficient capital management. The company also reiterates its commitment to paying 100% of NPAT as fully franked dividends. While facing uncertainties, Fleetwood remains prepared to deliver and capitalize on opportunities in the market.