Lendlease Group (LLC) H1 2025 earnings summary

Executive summary

• Operating profit after tax for HY/1H25 was AUD 122 million, up AUD 133 million year-over-year, driven by strong Investments and Development, offset by Construction and CRU losses.

• Statutory profit after tax was AUD 48 million, reversing a prior loss, despite AUD 74 million in negative investment property revaluations.

• Strategic simplification continued with cost reductions, divestment of international construction, and AUD 2.2 billion in capital recycling transactions completed or announced in less than nine months.

• Gearing stable at 27% with AUD 2.6 billion in available liquidity; AUD 1.7 billion in contracted cash inflows expected in H2/2H25.

• Focus remains on strengthening the balance sheet, returning capital to securityholders, and redeploying capital for future growth.

Financial highlights

• Segment operating EBITDA rose 39% to AUD 375 million, led by Investments and Development.

• Operating earnings per security were AUD 17.70; group operating ROE was 5%, with core IDC operations delivering 16.3%.

• Distributions per security of AUD 0.06, payout ratio 34%.

• Net finance costs increased 77% to AUD 136 million due to higher debt and rates.

• Net debt rose to AUD 3.8 billion (gearing 27%), with AUD 2.6 billion in available liquidity and average debt maturity of three years.

Outlook and guidance

• FY 2025 EPS guidance unchanged at $0.54–$0.62 per security, with higher IDC contribution and lower CRU.

• Construction profitability expected to return in H2/2H25 as loss-making projects complete, with margins trending toward historical 3%.

• Gearing expected to decrease toward 5–15% target range by FY 2026, supported by capital recycling.

• Targeting AUD 2.8 billion in capital recycling for FY 2025, with at least AUD 600 million more in H2/2H25.

• Pipeline restocking underway, with up to AUD 20 billion in advanced development opportunities.