Highlights

  • Goodman Group (ASX:GMG) increased FY26 operating profit by 15.7 per cent to $2.67 billion.
  • The company’s work in progress reached $19.7 billion across 50 projects in 12 countries.
  • Data centres accounted for 78 per cent of Goodman Group’s development pipeline.
  • The company continues expanding exposure to infrastructure linked to digital Demand and power availability.

Goodman Group (ASX:GMG) has reported FY26 operating profit growth of 15.7 per cent to $2.67 billion, supported by expansion in its development pipeline and increasing exposure to data-centre infrastructure. The company’s work in progress reached $19.7 billion, with data centres representing the majority of the development book.

The FY26 result highlights Goodman Group’s transition from a traditional industrial property Business towards a broader infrastructure-focused model. The company is increasing Investment in powered sites, development projects and partnerships while managing Capital requirements associated with a larger pipeline.

Why this result matters

Goodman Group has continued its shift towards infrastructure-linked property opportunities, with FY26 operating profit reaching $2.67 billion and exceeding the company’s previous operating Earnings growth target.

The company’s development pipeline has expanded significantly, with data centres becoming a major component of future activity. Investors are assessing whether Goodman Group can continue converting its pipeline into earnings while maintaining per-security returns amid higher capital requirements.

The result, and how it compares

Goodman Group reported FY26 operating profit of $2.67 billion, compared with $2,311.2 million in FY25, representing growth of approximately 15.7 per cent.

The result follows 13 per cent operating profit growth in the prior year and exceeded the company’s previous guidance for at least 9 per cent operating earnings-per-security growth.

The difference between total profit growth and per-security growth remains a key consideration for investors. Goodman Group has raised capital to support its development strategy, including a $4 billion Placement in early 2025, increasing the security base. FY25 operating earnings per security were 118.0 cents, while the company maintained a 30-cent distribution. The company has continued retaining earnings to support development activities.

The engine room: data centres, power and WIP

Goodman Group’s operational focus remains centred on its expanding development pipeline. Work in progress reached $19.7 billion across 50 projects in 12 countries, with data centres accounting for 78 per cent of the pipeline.

At the end of March, work in progress was $14.5 billion, with data centres representing 73 per cent. The increase reflects additional activity across data-centre developments and infrastructure projects.

Power availability remains a key Factor in data-centre development. Goodman Group’s secured and prospective grid capacity across major metropolitan markets was 6.4 gigawatts, including 3.6 gigawatts of secured capacity based on the latest confirmed figures.

Strategy and guidance

Goodman Group’s strategy involves converting its industrial land holdings into powered infrastructure Assets for large-scale tenants, while using its Partnership model to support future development.

The company continues developing assets across supply-constrained markets, including Sydney, Los Angeles, London, Tokyo and Hong Kong. The partnership structure allows Goodman Group to manage external capital alongside its own balance sheet.

External assets under management were $72.1 billion in June 2025, while total portfolio value reached $87.1 billion by March 2026.

Management has positioned data centres as a multi-year development opportunity, with Revenue recognition expected to vary depending on project completion stages. Formal FY27 operating earnings guidance could not be confirmed from available information.

The infrastructure transition

Goodman Group is benefiting from increasing demand for digital infrastructure, with data centres becoming a larger part of its development activity.

The company’s approach combines land ownership, power access and capital partnerships to support large-scale developments. However, the transition also increases exposure to construction timelines, funding requirements and infrastructure delivery challenges.

Catalysts and risks

Potential drivers for Goodman Group include additional data-centre leasing commitments, further secured power capacity and continued conversion of development projects into completed assets.

The key risks relate to capital requirements, project execution and market conditions. A larger data-centre pipeline requires significant funding, while additional Equity raising or partnership capital requirements could affect existing security holders.

Goodman Group also faces construction, grid connection and commissioning risks across multiple projects and jurisdictions. Valuation remains a consideration if project delivery or leasing activity develops slower than expected.

The balance

Goodman Group has expanded its exposure to data-centre infrastructure, supported by a $19.7 billion work-in-progress pipeline and increasing power capacity.

The company’s future performance will depend on converting development activity into earnings while managing capital requirements, project execution and per-security returns. FY26 demonstrated continued pipeline expansion, while future periods will focus on delivery and cash generation from these projects.