Peet (PPC) H2 2025 earnings summary

Executive summary

• Net operating profit for FY25 rose 60% year-over-year to $58.5 million, exceeding upgraded guidance and reflecting strong operational performance.

• Operating EPS increased 61% to 12.48c, with dividends per share up 82% to 7.75c, aided by a share buyback program.

• Strong sales and settlements, particularly in Queensland and WA, with 2,768 lots sold (up 11%) and 2,642 settled (up 9%) year-over-year.

• The company is well positioned for FY26, with a robust contracts on hand position and high land bank activation.

• A strategic review led by Goldman Sachs is underway to optimize future growth and value creation.

Financial highlights

• Revenue increased 39% year-over-year to $437.3 million, driven by on-balance sheet projects and funds management income.

• EBITDA rose 58% to $105.5 million, with margin improving to 24% from 21% last year.

• Net tangible assets per share increased 5% to $1.37.

• Net debt reduced from $316 million to $243.6 million, with gearing down to 27.5%.

• Operating cash flow before acquisitions exceeded $100 million, up from break-even last year.

Outlook and guidance

• Pipeline of approximately 31,000 lots underpins future earnings, with up to seven new projects launching in FY26–FY27.

• Over $640 million in contracts on hand supports FY26 earnings growth.

• Positive momentum and strong operating cash flows anticipated for FY26.

• Positioned to benefit from a rebound in ACT/NSW and Victorian markets.

• Most lots under contract as of June 2025 are expected to settle in FY26.