Fleetwood (ASX:FWD) has decided to exit its recreational vehicle segment and optimize its Building Solutions segment's manufacturing footprint, including closing its Smithfield, New South Wales site in the first quarter of fiscal year 2027, according to a Monday Australian bourse filing.
The company said it will engage with potential acquirers and expects to cease operating in the RV Solutions segment during fiscal 2027, anticipating restructuring costs of between AU$8 million and AU$10 million associated with the segment exit.
Fleetwood said a review of manufacturing capacity found that existing facilities in Queensland and Victoria are sufficient to meet current and forecast demand in New South Wales, while it will retain sales and project delivery capability in the state.
Fiscal year 2026 restructuring costs are expected to be between AU$12 million and AU$14 million, including redundancies, asset disposals, and lease exit costs, with the Smithfield closure expected to reduce annualized fixed costs by between AU$8 million and AU$9 million per year, with benefits commencing in the second quarter of fiscal year 2027, the filing added.
Underlying earnings before interest and tax, excluding restructuring costs, for fiscal year 2026, are currently expected to be in line with consensus at between AU$35 million and AU$39 million, though the Building Solutions segment is not expected to return to profitability in the second half due to a lower win rate and projects delivered at lower than forecast margins, the filing added.
Second half net profit after tax will be impacted by restructuring costs of AU$20 million to AU$24 million, with a final dividend not expected to be declared, it added.