Fisher & Paykel shrugs off red Thursday as investors satisfied tariff risks under control

It’s Trump Tariff Thursday and traders are scrambling to figure out who to sell and who to keep in their portfolios.

Listen to the HotCopper podcast for in-depth discussions and insights on all the biggest headlines from throughout the week. On Spotify, Apple, and more.

Perhaps surprisingly, Fisher & Paykel Healthcare (ASX:FPH) – a company that produces around 40% of its goods in Mexico – has survived. Or, at least, the share price hasn’t tanked.

“The company does not anticipate a material impact from the US tariffs on its net profit after tax for the 2025 financial year, which ended 31 March 2025,” FPH wrote on Thursday.

But FY26 is a different story. There, Fisher & Paykel expect company costs to increase as well as higher exposure to risk around forex volatility.

The imposition of these major Trump tariffs “may add to that timeframe” framing the company’s expectations around gross margin targets – something investors, for now at least, aren’t too worried about.

In all, investors appear cautiously assured. Of course, once those FY26 costs hit the books, we could see a turnaround in sentiment. But for now, Fisher & Paykel is looking like a defensive.

That could change depending on Trump’s whims.

The company’s Mexican manufacturing operations – comprising some 45% of its total volumes – remain subject to the U.S.-Mexico relationship, a not-entirely-beloved nation-state as far as Trump’s existing rhetoric goes.

Then there’s New Zealand. Some 55% of volumes are made there, but it’s harder to see any kind of drastic breakdown in the relationship between the U.S. and the NZ leading to some situation where a blanket 10% tariff there is escalated.

The bigger risk, then, is Mexico. Because 60% of its volumes in the U.S. are made there – sensibly enough – but “almost all [FPH] products imported into the U.S. from Mexico” satisfy the U.S.-Mexico-Canada Agreement (USMCA).

More market news

Meet GeoGeorge: The HotCopper poster so accurate he got hired as an analyst

Levy beef: Trump whacks Oz with 10% tariffs on ‘Liberation Day’

For now, no immediate tariff hits. A lucky winner. Shareholders are likely hoping Mexican President Claudia Sheinbaum can continue to uphold her reputation as a “Trump whisperer.”

FPH last traded at $31.76/sh.

Join the discussion: See what HotCopper users are saying about Fisher & Paykel and be part of the conversations that move the markets.

The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.