Winton Land (WIN) H1 2025 earnings summary

Executive summary

• Revenue for H1 FY25 was $81.1 million, down 5.3% year-over-year, with 90 units settled versus 158 in H1 FY24, reflecting a challenging property market and lower residential settlements.

• EBITDA dropped to a loss of $0.1 million from a $14.2 million profit in H1 FY24; net loss after tax was $2.0 million compared to a $9.7 million profit.

• Maintained financial discipline, paused dividends, and delayed major projects to manage risk amid ongoing recessionary conditions.

• Cash holdings at period end were $26.1 million, with a pre-sale book of $342.0 million.

• Completed major residential projects, including Jimmy's Point, ALTA Villas, Northlake Stage 17, and Lakeside Te Kauwhata.

Financial highlights

• Revenue decreased to $81.1 million from $85.6 million year-over-year; 90 units settled, down from 158.

• Gross profit margin declined to 29.0% from 33.4% year-over-year.

• Commercial revenue rose to $10.4 million, driven by Ayrburn's full six months of trading, but segment EBITDA was negative $3.0 million.

• Cost of sales increased slightly to $57.6 million, driven by a higher proportion of built product settlements.

• Fair value loss on investment properties was $2.8 million, compared to a $2.6 million gain in the prior period.

Outlook and guidance

• Economic downturn is deeper and longer than anticipated; recovery in the property market is not expected until after unemployment peaks.

• Management remains cautious, focusing on financial strength and strategic positioning for an eventual upturn.

• No dividend declared for H1 FY25 to preserve financial flexibility.