Lendlease Group (LLC) H1 2026 earnings summary

Executive summary

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

• Statutory loss after tax of $318m, driven by non-cash negative investment property 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 further capital recycling initiatives underway targeting $3.0b.

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

Financial highlights

• Segment EBITDA for IDC was $204m, down from $341m, mainly due to limited development completions and lower transaction earnings.

• 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 $85m from $136m due to lower average debt costs and levels.

• Interim distribution of 6.2 cents per security.

Outlook and guidance

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

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

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

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

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