Fletcher Building (ASX:FBU, NZE:FBU) said its unit, Higgins Contractors, was appointed as the preferred contractor for the East Waikato, Bay of Plenty and Hawkes Bay integrated delivery contracts with the New Zealand Transport Agency Waka Kotahi for state highway road maintenance, each for a 10-year term from April 2026, according to filings on Friday with the Australian and the New Zealand bourses.

The revenue value of the new contracts is estimated to be around NZ$1.3 billion over their 10-year term.

Higgins will work with the agency to finalize the integrated delivery contracts for each of the relevant regions. It currently delivers road maintenance for all three regions as well as Manawatu, which was not retained under the new delivery system.

Its shares fell 2% on the Australian bourse and nearly 1% on the New Zealand bourse on Friday.