Lendlease Group (LLC) H2 2026 earnings summary

Executive summary

• FY26 delivered IDC earnings of 33.7 cents per security at the top end of guidance, driven by strong Construction performance, business simplification, and a restocked Development pipeline.

• Statutory loss after tax was $(749)m, impacted by $182m in non-cash impairments and provisions in CRU.

• Construction segment delivered a 4.3% EBITDA margin, above target, with revenue up 29% year-over-year and $6.4b in new work secured.

• Net overheads reduced by 22% to $363m, with further cost-saving initiatives planned for FY27.

• Group focus remains on strengthening the balance sheet, capital recycling, and operational improvement, with a new CEO commencing in August 2026.

Financial highlights

• IDC segment EBITDA was $542m; Investments EBITDA $297m, Development EBITDA $78m, Construction EBITDA $167m, CRU EBITDA loss $(500)m.

• Group operating profit after tax was a loss of $(567)m, with $233m from IDC and $(800)m from CRU.

• Reported gearing at year-end was 30.3%, with pro forma underlying gearing at 37.7% after contracted transactions.

• Available and committed liquidity stood at $4.0b.

• Full year distribution was 15.7 cents per security; no company dividend declared.

Outlook and guidance

• FY27 IDC earnings per security expected in the range of 37–41 cents, implying ~16% EPS growth at midpoint.

• Strong development earnings recovery anticipated from pre-sold apartment settlements and new JV contributions.

• Construction revenue growth expected, with EBITDA margin targeted at 3%-4% through the cycle.

• Gearing anticipated to remain elevated at half-year, with reduction expected in the second half as settlements and capital recycling progress.

• Investments earnings to be impacted by lower co-investment and funds management income; no specific FY27 guidance for CRU, with further cost savings targeted.