Lendlease Group (LLC) H1 2026 earnings summary

Executive summary

• FY26 is a transitional period with a strategic reset focusing on Investments, Development, and Construction (IDC), and accelerated capital recycling through the Capital Release Unit (CRU).

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

• $2.8b of CRU transactions have been announced or completed, supporting capital recycling and future buyback plans.

• Leadership transitions include a new CFO and other senior management changes, with a focus on continuity and execution.

• Interim unfranked distribution of $43m (6.2 cents per unit) from the Trust approved; no interim dividend for the Company.

Financial highlights

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

• Group statutory loss after tax was $(318)m, including $118m of 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.

• Funds under management stable at $48.7b, with $2.9b in co-investment capital.

Outlook and guidance

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

• Group targets include reducing gearing to 15% by FY26 and achieving a $300m exit run rate for overheads.

• Medium-term targets include 8–10% annual earnings growth, $4b per annum in development completions from FY27, and double-digit equity returns from IDC.

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

• $50m of additional pre-tax run-rate cost savings targeted in FY26, with $21m actioned in HY26.