Lendlease Group (LLC) H2 2025 earnings summary

Executive summary

• Achieved a return to profitability in FY25 with AUD 386 million OPAT and AUD 225 million statutory profit, reversing prior year losses and driven by a refreshed strategy focused on simplification, operational efficiency, and sustainable growth above cost of equity since May 2024.

• Exceeded cost reduction targets, delivering AUD 141 million in annualized savings and identifying an additional AUD 50 million for FY26, including a 35% reduction in FTEs and removal of regional management layers.

• Completed major restructuring and divestment of offshore/international construction operations, materially improving the risk profile.

• Over AUD 2.5 billion in capital recycling transactions completed or announced, with a further AUD 2 billion targeted for FY26 and AUD 1 billion at an advanced stage.

• Distribution per security increased 44% year-over-year to AUD 0.23, with a payout ratio of 41% and fully franked dividends.

Financial highlights

• Operating profit after tax (OPAT) for FY25 was AUD 386 million, a turnaround from a loss of AUD 1.24 billion in FY24.

• Segment operating EBITDA was AUD 1.04 billion, up from a loss of AUD 328 million in FY24, driven by the absence of impairments and restructuring charges.

• Group operating earnings were AUD 0.559 per security, in line with guidance; statutory EPS was 32.6c.

• Net debt at 30 June was AUD 3.4 billion, with gearing at 26.6%, impacted by transaction timing and FX.

• 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 focus on double-digit equity returns, growing FUM at 8–10% CAGR, and increasing annual revenue to AUD 5 billion+.