Fleetwood at a Glance

Fleetwood Limited (ASX: FWD) is positioning itself as a major player in Australia’s modular construction and accommodation industry. Through its three divisions Building Solutions, RV Solutions, and Community Solutions the company has built a resilient, diversified business model capable of navigating cyclical shifts in housing, tourism, and resources. FY2025 results show improving margins, solid cash generation, and a healthy order pipeline, underpinned by strong government infrastructure spending and an RV market recovery. With a revitalised balance sheet and growing exposure to sustainable construction, Fleetwood appears ready to convert momentum into meaningful shareholder returns.

Who Is Fleetwood? A Leader in Modular Innovation

Fleetwood, founded in 1964 and headquartered in Perth, has evolved from a caravan manufacturer into an integrated modular construction and accommodation solutions group. The company designs, builds, and manages modular buildings across Australia for sectors such as education, defence, mining, and social infrastructure.

Its strategy focuses on three pillars:

1. Expanding modular capacity and project delivery efficiency.

2. Rebuilding the RV Solutions brand portfolio to capture renewed travel demand.

3. Leveraging operational synergies and digital systems across business units.

Source: FY25-Investor-Presentation

Fleetwood operates manufacturing facilities in Perth, Bendigo, and Queensland, with additional service hubs across key states. The company’s modular expertise positions it as a partner of choice for government agencies pursuing rapid, cost-effective, and low-carbon building alternatives a market expected to grow steadily under Australia’s infrastructure and housing initiatives.

Building Solutions: Core Growth Engine

Fleetwood’s Building Solutions division remains its main growth driver, contributing around 70–75% of group revenue in FY2025. This segment delivers modular buildings for schools, defence housing, aged care, and remote workforce camps.

FY2025 performance

Revenue rose 15.7% year on year to around A$356 million, supported by strong demand for education and social infrastructure projects in Western Australia and Queensland. EBIT margins expanded from 2% to 5.3% as a result of a better project mix and improved factory utilisation. The company also secured several major government contracts, including classroom and defence accommodation projects with a combined value exceeding A$180 million.

Fleetwood’s modular systems are favoured for their speed, sustainability, and cost efficiency. The company continues to invest in manufacturing automation and digital project tracking to reduce delivery time and waste. The education and defence segments are expected to remain major contributors through FY2026, supported by federal housing programs and continued demand for relocatable facilities in regional areas.

RV Solutions: Recovery in Motion

Fleetwood’s RV Solutions division, which includes brands such as Camec and Northern RV, designs and supplies components, accessories and repair services for recreational vehicles, with FY2025 marking a period of stabilisation after pandemic-driven volatility and inventory overhangs. RV revenue declined 6.4% year on year to A$70.6 million due to difficult market conditions and a limited ability to pass on price increases to OEM customers, while EBIT margins fell from 1.7% in FY2024 to –4% in FY2025, reflecting ongoing structural pressures in the segment.

Despite these headwinds, Fleetwood expanded its digital sales channels to improve direct-to-customer engagement and cross-selling across its dealer network. With the Australian RV market still below its 2022 peak but demand gradually recovering as travel normalises and demographics remain supportive, the division’s leaner cost base and improved inventory position enhance its profitability potential heading into FY2026.

Community Solutions: Consistent Contributor

Fleetwood’s Community Solutions division provides accommodation and facility management for remote mining and construction sites. This steady, cash-generating segment represented around 15% of FY2025 revenue.

FY2025 results reflected a modest revenue increase to A$76.8 million, supported by renewed contracts in Western Australia’s resources corridor and the Northern Territory. Despite flat margins due to higher utilities and maintenance costs, the business remains a reliable earnings contributor, with multi-year agreements providing revenue visibility.

Fleetwood continues to upgrade camp amenities and digital monitoring systems, improving service delivery while reducing energy consumption aligning with ESG objectives and client sustainability standards.

Financial Pulse: FY2025 Highlights

Fleetwood delivered a solid FY2025 financial result, marked by operational discipline, earnings recovery, and a return to cash generation.

Key metrics:

Fiscal Year	Revenue (A$ m)	EBITDA (A$ m)	NPAT (A$ m)	EPS (A¢)	Dividend (A¢)
FY2023	409.3	21	2	2.2	2.1
FY2024	416.4	24.7	3.8	4	5
FY2025	503.1	54.1	14.6	15.5	25

Revenue grew 21% YoY, supported by project backlog execution and cost efficiency.

EBITDA rose 119%, reflecting better plant utilisation and project mix.
NPAT climbed 284%, with EPS reaching a three-year high.

Fleetwood’s gross margin expanded to 10.8%, while EBIT margin improved to 5.3% both reflecting steady operational leverage. Management reaffirmed its dividend payout policy of 60–80% of NPAT, declaring a fully franked 25¢ per share dividend for FY2025.

Balance Sheet and Cash Flow Health

Fleetwood ended FY2025 with a strong balance sheet and ample liquidity, holding A$51.02 million in cash and equivalents against borrowings of A$17.26 million, resulting in a net cash position of roughly A$34 million. Total assets stood at A$257.4 million, with an equity ratio above 65%, underscoring the company’s financial strength.

Operating cash flow improved to A$42.7 million, primarily driven by higher earnings and efficient working-capital management. Capital expenditure decreased to A$6.4 million, largely directed toward plant automation and fleet upgrades.

Fleetwood’s low leverage (net debt/EBITDA < 0.7×) provides flexibility for acquisitions and expansion projects. The company also refinanced its facility on favourable terms, locking in interest cost advantages amid a stabilising rate environment.

Fleetwood Strategic Outlook and Growth Catalysts

Management expects low to mid single digit revenue growth in FY2026, driven by a robust A$310 million order book and new government housing and defence contracts.

Key growth drivers include:

1- Expansion of modular construction capacity to meet Australia’s housing shortfall.

2- Participation in large-scale education and defence tenders.

3- Ongoing RV market recovery and product innovation.

4- Efficiency gains from digital project management and Lean manufacturing.

Longer term, Fleetwood’s “Build Smart, Live Better” strategy aligns with Australia’s energy transition and net-zero goals, as modular buildings offer lower embodied carbon and faster project turnaround. The company’s ESG initiatives, including waste reduction and renewable material use, also enhance its competitive positioning for government tenders.

Risks and Challenges to Watch

While Fleetwood’s fundamentals are improving, investors should remain mindful of several headwinds:

1. Construction cost inflation may compress margins despite contract indexing.

2. Project execution risk remains elevated in fixed-price government contracts.

3. RV market volatility could delay recovery if consumer sentiment weakens.

4. Labour shortages in construction and manufacturing could raise operating costs.

Management’s focus on automation, diversified revenue streams, and a prudent capital structure helps mitigate many of these challenges, but cyclical demand remains a key determinant of near-term performance.

Valuation and Investment View

Consensus analyst commentary points to a 12 to 18-month target price of A$4.82, implying upside potential of 60-70% from current levels.

The investment view remains constructive, supported by earnings visibility, balance-sheet strength, and exposure to structural housing demand. The modest valuation offers a reasonable entry point for medium-term investors seeking steady dividends and moderate growth potential.

Trading and Technical Setup

Fleetwood shares (ASX: FWD) have moved from A$1.6 to A$3.25 through 2025, effectively doubling. The stock price is in an up-going channel (see the chart), showing the tendency to return to the previous highs in FY2011 to 2013 (The range between A$5.0 to A$8.5). The main Support levels are ≈ A$2.75 and ≈ A$2.35 (the orange line and the red line in the chart) and the resistance level is at ≈ A$3.25 (the green line in the chart). A decisive breakout above A$ 3.25 could invite fresh momentum as construction milestones are met.

Volume trends and RSI indicators remain neutral with a tendency to upper levels (see the chart). Our recommended entry range for traders is A$2.75- A$2.9 with the A$2.75 support level to be used as a stoploss level. A confirmed break below this level would mean the lower boundary of the uprising channel is also broken, which can potentially open the way down to lower levels. The short-term target is the resistance level at A$3.25 with the 12-18 month target level of A$4.8 for long-term investors.

Bottom Line: Why Fleetwood Matters in 2025

Fleetwood has transitioned from a cyclical construction play into a disciplined, cash-generating modular specialist. FY2025 marked meaningful operational progress, improved profitability, and strong project execution. With a healthy order pipeline, net cash position, and consistent dividends, the company is well-placed to deliver incremental growth through FY2026.

While short-term macro risks persist, Fleetwood’s diversified business model, strategic government partnerships, and emphasis on sustainable modular solutions make it one of the more balanced exposure opportunities in Australia’s infrastructure and housing sectors.

FAQs about Fleetwood (ASX: FWD)

Is Fleetwood’s dividend sustainable?

Yes. The company targets a payout of 60–80% of NPAT and has maintained fully franked dividends for five consecutive years.

What are Fleetwood’s biggest growth drivers for FY2026?

A$310 million of committed work, modular education projects, defense accommodation, and automation-led efficiency gains.

How exposed is Fleetwood to the cyclical housing market?

Only partially roughly half its Building Solutions revenue stems from government and institutional contracts, offering resilience during private sector slowdowns.

What is the main risk to watch?

Execution risk in large fixed-price projects and potential input cost inflation remain the key watchpoints.