Lendlease Group (LLC) H2 2025 earnings summary

Executive summary

• Achieved a significant turnaround with a return to statutory and operating profitability for FY25, following a major strategy update in May 2024.

• Distribution per security increased 44% year-over-year to 23.0cps, with a payout ratio of 41% and fully franked dividends.

• Exceeded cost reduction targets, delivering AUD 141 million in annualized run rate savings and identifying an additional AUD 50 million for FY26.

• Completed exit from international construction operations, improving risk profile and simplifying the business.

• Over AUD 2.5 billion in capital recycling transactions completed or announced, with a further AUD 2 billion targeted for FY26.

Financial highlights

• Operating Profit after Tax (OPAT) for FY25 was AUD 386 million, reversing a prior year loss of AUD 1.24 billion.

• Statutory Profit after Tax was AUD 225 million, after a negative investment property revaluation of AUD 161 million.

• Segment Operating EBITDA rose to AUD 1.041 billion, up from a loss of AUD 328 million in FY24.

• Net debt at 30 June was AUD 3.4 billion, with gearing at 26.6%.

• Distributions per security rose 44% to AUD 0.23, with a payout ratio of 41%.

Outlook and guidance

• No overall group guidance; IDC segment earnings per security for FY26 anticipated at AUD 0.28–0.34.

• AUD 2 billion of capital recycling targeted for FY26, with AUD 1 billion at advanced stage.

• Gearing expected to reduce to or below 15% by end of FY26.

• Additional AUD 50 million in pre-tax run-rate cost savings targeted for FY26.

• Medium-term targets include annual construction revenues above AUD 5 billion and management EBITDA margins above 40%.