Highlights

  • FY26 operating profit increased 15.7% to approximately AUD 2.67 billion.
  • Operating Earnings per security increased 10.1% to 129.9 cents.
  • Development work in progress reached AUD 19.7 billion, with data centres representing 78%.
  • Management targeted FY27 operating earnings per security growth of 9%, subject to delivery.

Goodman Group (ASX:GMG) owns, develops and manages logistics and data centre property through its own holdings and Capital partnerships. Its FY26 earnings increase accompanied a substantial expansion of its development work in progress. Data centres now dominate that pipeline, placing greater emphasis on securing power, tenants, construction capacity and capital for each project.

Operating Result and Development Pipeline

The group reported operating profit of approximately AUD 2.67 billion, up 15.7%, and operating earnings of 129.9 cents per security, up 10.1%. Statutory profit was approximately AUD 2.78 billion. Work in progress totalled AUD 19.7 billion, of which 78% related to data centres. Work in progress represents active projects, rather than completed rental Assets or fully realised development profit. The pace at which projects finish and begin generating income is therefore material to future results.

Funding and Distribution Position

Reported gearing was 6.5%, while look-through gearing, which includes relevant Partnership exposures, was 19.5%. The group held AUD 6.4 billion of cash and undrawn facilities. It maintained a 30.0-cent distribution per security for FY26, retaining a substantial portion of operating earnings for Investment and development. A low distribution relative to earnings is part of its capital allocation pattern, rather than evidence that operating profit and cash distributions are interchangeable.

Data Centre Execution and FY27 Guidance

Management targeted 9% growth in operating earnings per security for FY27. Delivery depends on power access, tenant commitments, construction costs, project timing and capital partner arrangements. Large development commitments introduce financial and execution risk even where Demand for digital infrastructure remains substantial. The extent of signed leases, rather than the headline pipeline value alone, will be an important measure of progress.

Key Insights

FY26 growth was accompanied by a larger pipeline that is increasingly concentrated in data centres. The group’s funding position supports current development activity, while project completion, power availability and customer commitments determine how much of that pipeline becomes recurring income.