Lendlease Group (LLC) H1 2026 earnings summary

Executive summary

• FY26 is a transitional year with a strategic focus on Investments, Development, and Construction (IDC), while accelerating capital recycling through the Capital Release Unit (CRU).

• Statutory loss after tax was $(318)m, driven by non-cash negative revaluations and impairments, mainly in the US, UK, and Singapore.

• IDC segments delivered $204m EBITDA, with strong Construction earnings and stable Investments performance.

• $2.8b of CRU transactions announced or completed, with $3.0b in capital recycling initiatives underway for FY26.

• Board remains focused on strengthening the balance sheet, returning capital to securityholders, and growing the Investments platform.

Financial highlights

• Segment EBITDA for IDC was $204m, down from $341m, with Investments at $101m, Development at $34m, and Construction at $69m.

• Statutory loss after tax was $(318)m, including $118m in non-cash negative revaluations and impairments.

• Group revenue for HY26 was $2,839m, down from $4,527m in HY25.

• Net finance costs decreased to $8m due to lower average debt costs and levels.

• Interim distribution of 6.2 cents per security.

Outlook and guidance

• FY26 IDC earnings guidance maintained at 28–34 cents per security, with stronger second half anticipated.

• Targeting underlying gearing of 15% by end of FY26, subject to completion of capital recycling initiatives.

• Medium-term targets include 8–10% annual FUM growth, $4b per annum in development from FY27, and sustainable EBITDA margins above 40% in Investments.

• $2.0b of CRU capital recycling targeted for FY26.

• Improved earnings visibility for FY27 and FY28, anchored by major project completions and joint ventures.