Cedar Woods Properties (CWP) H2 2025 earnings summary

Executive summary

• FY25 net profit after tax reached $48.1 million, up 19% year-over-year, surpassing guidance, with revenue at $466 million and 1,125 property settlements.

• Maintains a diversified portfolio of 35 projects and over 9,400 lots/dwellings across four Australian states, with major acquisitions in Mount Barker (SA), Fairfield (VIC), and other states.

• Strategic partnerships expanded, including QIC and Tokyo Gas Real Estate, with multiple joint ventures completed.

• Favourable macro environment: housing shortage, supportive policy, and strong population growth underpin demand.

• Forward presales exceeded $660 million at year-end, with 60% expected to settle in FY26.

Financial highlights

• Earnings per share rose 19% to 58.4 cents; gross margin improved to 28% from 25% in the prior year.

• Final dividend of 19 cents per share, fully franked; total FY25 dividends at 29 cents, up 16% year-over-year, with a payout ratio of 50%.

• Pre-sales contracts at $660 million as of June 30, up from $559 million last year.

• Return on equity at 10%; net tangible assets per share at $5.92.

• Net bank debt reduced to $125.6 million by June 30, 2025; gearing at 15%; interest cover at 6.3 times.

Outlook and guidance

• Guiding for approximately 10% NPAT growth in FY26, with balanced earnings expected between halves.

• Over $660 million in presales to settle in FY26 and FY27, providing strong revenue visibility.

• Several new projects to contribute to FY26 earnings, including Bloom 2, Leveson, Hudson Hub, and Fletcher's Slip.

• Market conditions remain favorable, with housing shortages, policy support, easing interest rates, and low unemployment.

• Portfolio pipeline and liquidity position support accelerated acquisition and growth strategy.