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, with revenue of $196 million from 479 settlements and EPS of 18.2c, reflecting a 468% increase.

• Record presales of $642 million, up 22% year-over-year, with 40% expected to settle in FY25; 654 lots sold and 732 portfolio sales in H1 FY25.

• 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 enable larger-scale developments, with the first TGRE JV project completed.

• Favourable market conditions outside Victoria, with strong demand driven by low supply and population growth.

Financial highlights

• Revenue increased 59% year-over-year to $196 million, 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.

• Interim dividend of 10.0c per share declared, up 25% on PCP, fully franked.

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 low gearing to fund developments and acquisitions.

• Outlook supported by strong demand, limited housing supply, and a robust project pipeline.

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