Cedar Woods Properties (CWP) H2 2026 earnings summary

Executive summary

• Achieved record FY26 net profit after tax of $65.6 million, up 36% year-over-year, with revenue rising to $502.4 million and EPS up 33%.

• Declared fully franked dividends totaling 39.0 cents per share, up 34% year-over-year.

• Maintained a diversified portfolio of 36 projects across four states, with a pipeline exceeding 9,600 lots, apartments, and commercial opportunities.

• Achieved 1,326 net sales and 1,068 settlements, with pre-sales at year-end reaching a record $830 million, covering over 90% of FY27 revenue.

• Advanced ESG initiatives and maintained strong workplace culture, with staff satisfaction exceeding targets.

Financial highlights

• Revenue increased 8% year-over-year to $502.4 million, driven by improved pricing and product mix.

• Gross margin improved to 30% from 28% in the prior year.

• Net Profit After Tax (NPAT) rose 36% to $65.6 million; EPS up 33% to 77.9¢; dividends per share up 34% to 39.0¢.

• Net bank debt was $157.7 million; gearing at 18% (net bank debt to total tangible assets less cash); net bank debt to equity was 29%.

• Interest cover at 8x, above covenant requirements; weighted average cost of debt 5.7%.

Outlook and guidance

• Targeting FY27 NPAT growth of 15%, supported by $830 million in presales and over 90% of FY27 settlements already contracted.

• Margins expected to remain stable in FY27, with modest growth in admin costs anticipated.

• Interest rates forecast to fall in 2027, expected to boost sentiment and sales; long-term fundamentals remain strong due to housing undersupply, population growth, and low unemployment.

• Residential sales conditions expected to remain soft through much of FY27, with improvement anticipated as sentiment recovers.

• Outlook remains sensitive to prevailing market conditions and buyer sentiment.