Cedar Woods Properties (CWP) H1 2025 earnings summary

Executive summary

• Net profit after tax for H1 FY25 was $15.0 million, up from $2.6 million year-over-year, on revenue of $196 million from 479 settlements, with EPS up 468% to 18.2c.

• Record presales of $642 million, up 22% year-over-year, with about 40% expected to settle in FY25.

• Interim fully franked dividend of 10.0c per share declared, up 25% year-over-year, totaling $8.25 million.

• Portfolio includes 37 projects and a pipeline of over 9,700 lots/dwellings across four states, supporting future earnings.

• Strategic partnerships with QIC and Tokyo Gas Real Estate are expanding, with the first TGRE JV project completed.

Financial highlights

• Revenue increased 59% year-over-year, driven by higher and more valuable settlements.

• Gross profit rose to $51.6 million (from $32.3 million), with gross margin stable at 26%.

• Operating profit reached $28.5 million, up from $8.0 million in the prior period.

• Net bank debt at 31 December 2024 was $185 million, with gearing at 24% of tangible assets and 40% of equity.

• Interest cover at 6.2 times, with over $94 million in available bank facility headroom.

Outlook and guidance

• Minimum 10% NPAT growth guided for FY25, with further profit growth anticipated in FY26.

• More than half of forecast FY26 revenue already secured by presales.

• Balance sheet remains strong, with significant liquidity and extended debt maturities (average 3.4 years).

• Accelerated acquisition efforts and robust project pipeline support growth beyond FY26.

• Guidance subject to timing of settlements, with potential for some FY25 settlements to shift into FY26.