Shares in Australian modular building company Fleetwood Corporation have been savaged after the sudden departure of chief executive Bruce Nicholson.
Sudden Leadership Change
The ASX-listed company announced on Tuesday that it had parted ways with Mr Nicholson effective immediately, ending his four-and-a-half-year tenure leading the former caravan maker.
Chair John Klepec has temporarily taken the reins as executive chair while the board begins searching for a permanent replacement.
Fleetwood provided minimal explanation for the abrupt change, stating only that the board made the decision to ensure long-term success and alignment with strategic priorities.
Market Reaction and Recent Performance
Investors reacted harshly to the news, sending Fleetwood shares down as much as 10 percent in Tuesday morning trading.
By 11.45am, the stock had recovered slightly but remained 8.4 percent lower at $2.315, reducing the company's market value to approximately $231.5 million.
The sell-off comes despite what the company described as outstanding annual results in August that featured higher earnings, revenue and dividends under Mr Nicholson's leadership.
Fleetwood shares had reached a 10-year high of $3.23 just last month before recent broader market weakness. Even after Tuesday's plunge, the stock remains up 31 percent for 2025.
Company Transformation and Future Direction
Mr Nicholson is credited with restructuring Fleetwood since taking the helm, including selling or closing unprofitable businesses and implementing cost-cutting measures that lifted the company's shares from 20-year lows.
Since divesting its foundation caravan business in 2019, Fleetwood has focused on modular construction and transportable accommodation, along with caravan accessories and two resources-linked accommodation villages in Western Australia's North West, including the Searipple village in Karratha.
The company sought to reassure investors about its future direction, stating: We remain confident in our strategy and the strength of our leadership team to continue delivering value to our customers, employees, and shareholders.
Mr Klepec, a former chief development officer at Gina Rinehart's Hancock Prospecting, was originally brought into Fleetwood in 2021 with backing from activist shareholder Sandon Capital. He also serves as executive chair of listed company Wellard, though his duties there have diminished recently.
The company thanked Mr Nicholson for his service and affirmed that its operations and strategic initiatives remain unchanged despite the leadership transition.
