Peet (PPC) H1 2025 earnings summary

Executive summary

• Net profit after tax for 1H25 rose 63% year-over-year to $25.2 million, with EPS up 64% to 5.38 cents and strong underlying performance across Qld, WA, and SA despite mixed market conditions.

• Revenue increased up to 18% to $182.5 million, driven by increased settlement revenue and funds management fee income.

• 1,370 lots sold (up 24%) and 1,009 lots settled (down 9%) in 1H25, with contracts on hand at $661 million, up 37% from June 2024.

• Interim dividend of 2.75 cents per share, fully franked, up 83% year-over-year.

• Well positioned in key markets (Qld, WA, SA) and prepared for rebounds in Vic and ACT, supported by a diverse land bank and disciplined capital management.

Financial highlights

• EBITDA rose 62% to $46.9 million, with margin improving to 26% from 18% in 1H24.

• Operating EPS increased 64% to 5.38 cents; book NTA per share at $1.34.

• Cash and available facilities at approximately $130 million; net interest-bearing debt at $328.1 million.

• Gearing at 35.3%, above the 20–30% target range due to acquisitions and development spend.

• Value of contracts on hand reached $661 million, up 6% since December 2024.

Outlook and guidance

• FY25 NPAT targeted at $50–$55 million, supported by strong contracts on hand and robust 2H25 operating cash flows.

• Up to eight new projects commencing by 2027, with three starting in the second half and fully funded.

• Settlements expected to improve in 2H25; gearing anticipated to trend down toward 20–30% target range.

• Market fundamentals remain supportive, with high enquiry levels, positive migration, and strong labour market.

• Interest rates likely peaked after RBA cut in February 2025.