Australia · Delayed Price · Currency is AUD Lendlease Group Earnings Call Transcripts
Fiscal Year 2026
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FY 2026 saw strong construction and investment performance but was offset by significant losses and impairments in the Capital Release Unit, resulting in a statutory loss and elevated gearing. FY 2027 guidance anticipates improved IDC earnings, continued capital recycling, and a focus on deleveraging and operational efficiency.
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The group reported a lower segment EBITDA due to limited development completions and impairments, but maintained strong liquidity and advanced its capital recycling strategy. FY 2026 is expected to be transitional, with stronger earnings in the second half and a focus on cost reduction and gearing targets.
Fiscal Year 2025
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The AGM highlighted a return to profitability, major capital recycling, and a renewed focus on core markets. Board renewal, a planned AUD 500 million buyback, and strong environmental progress were discussed, with robust shareholder support for all resolutions.
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Full-year results show a strong turnaround with AUD 386 million OPAT, 44% higher distributions, and significant cost savings. Capital recycling and divestments improved the risk profile, with gearing targeted to fall to 15% by FY 2026. IDC segment earnings per security for FY 2026 are guided at AUD 0.28–0.34.
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A new 50/50 joint venture with The Crown Estate will release over $300 million in capital, halve future funding commitments, and accelerate progress toward a $2.8 billion capital recycling target. The deal enhances optionality for future development and supports deleveraging and platform growth.
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HY 2025 saw a return to profitability, with operating profit after tax of AUD 122 million and strong progress on cost reduction, capital recycling, and simplification. Construction losses were contained, and guidance for FY 2025 EPS remains unchanged, supported by major asset sales and a robust development pipeline.
Fiscal Year 2024
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The AGM detailed a strategic reset focused on simplifying operations, divesting offshore construction, and prioritizing Australian growth. Despite a statutory loss, operational earnings improved, and all resolutions—including board appointments and remuneration changes—passed with strong support.
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A refreshed strategy drove major restructuring, cost reductions, and divestments, resulting in a statutory loss but stable core profit. FY 2025 guidance is strong, with significant capital recycling, deleveraging, and targeted cost savings, while market conditions show early signs of improvement.