Highlights

  • Lendlease reported FY2026 statutory loss after tax of A$749 million.
  • The company continues a program focused on asset recycling and Business simplification.
  • Construction Revenue increased to A$3.9 billion during FY2026.
  • Lendlease reported funds under management of A$43.9 billion.

Lendlease Group (ASX:LLC) reported a statutory loss after tax of A$749 million for the year ended 30 June 2026. The result was affected by the Capital Release Unit, which recorded EBITDA of negative A$500 million including A$340 million of non-cash impairments.

Excluding the Capital Release Unit, the Investments, Development and Construction Core business reported operating profit after tax of A$233 million, equal to 33.7 cents per stapled security.

Business Operations

Lendlease develops, builds, owns and manages real estate and infrastructure assets. Its continuing operations include Investments, Development and Construction.

Investments manages third-party and co-invested capital, with funds under management of A$43.9 billion at 30 June 2026. Development focuses on urban precincts, apartments and commercial projects, while Construction delivers building and engineering work.

Recent Developments

During FY2026, Lendlease continued asset recycling activities. The company reported A$1.2 billion of Capital Release Unit transactions contracted during the year, with cumulative contracted or completed transactions reaching A$3.4 billion.

The company also reduced overheads by more than 20 per cent to A$363 million. The distribution declined to 15.7 cents per stapled security from 23.0 cents.

Financial and Operational Position

Construction revenue increased 29 per cent to A$3.9 billion and generated EBITDA of A$167 million at a 4.3 per cent margin. Backlog revenue increased 42 per cent to A$8.4 billion, with A$6.4 billion of new work secured.

Investments contributed A$297 million of EBITDA and Development contributed A$78 million. Reported net Debt was A$3.7 billion, while available Liquidity stood at A$4.0 billion.

Future Areas to Monitor

Lendlease provided FY2027 guidance of 37 to 41 cents per security for core earnings. Progress on asset sales, further recycling activities and changes in gearing remain important developments.

The company continues to focus on completing transactions within the Capital Release Unit and progressing its continuing businesses.

Risks

Lendlease remains exposed to property market conditions, construction risks, asset sale timing and changes in funds under management. Development and construction activities can also be affected by project execution factors.

Key Insights

Lendlease’s FY2026 results reflect a period of significant business transition. The company is progressing asset recycling and restructuring activities while continuing operations across investments, development and construction.