Key Highlights

  • CVC Limited's FY26 total income increased 380.1% to $212.2 million from $44.2 million in FY25.
  • Underlying NPAT rose 541.7% to $7.7 million, while NPAT attributable to shareholders increased 340.0% to $2.2 million.
  • Cash increased 574.6% to $87.7 million, although net Assets to shareholders declined 2.0% to $170.9 million.
  • CVC paid a fully franked Special Dividend of 5 cents per share but will pay no final dividend for FY26.

CVC Limited (ASX:CVC) reported a substantial increase in its FY26 earnings, with net profit after tax attributable to shareholders rising to $2.2 million from $0.5 million a year earlier. CVC shares' performance should be considered alongside the company's transactional Earnings profile, with FY26 results driven by property realisations and project activity rather than a recurring income stream. The company also ended the year with $87.7 million in cash, compared with $13.0 million in FY25.

Income and Profit Growth

CVC's total income increased 380.1% to $212.2 million in FY26, up from $44.2 million in the previous financial year. Underlying NPAT increased 541.7%, reaching $7.7 million compared with $1.2 million in FY25.

NPAT attributable to shareholders also increased, rising 340.0% from $0.5 million to $2.2 million. The figures reflect a year in which CVC realised several property investments and generated significant proceeds from project transactions.

Despite the improvement in profit, the Balance Sheet showed a decline in net assets to shareholders. Net assets fell 2.0% to $170.9 million from $174.3 million, while net assets per share decreased 1.3% to $1.47 from $1.49. The company said the movement followed payment of the 5-cent-per-share dividend during the year.

Property Realisations and Cash Position

The Laverton North project was a major contributor to FY26 activity. CVC reported a profit before tax attributable to shareholders of $37.8 million from the sale. The transaction contributed to a broader improvement in liquidity, with the company also receiving $9.6 million from settlements of lots within the Clyde North project.

CVC's cash position increased by $74.7 million during the year, reaching $87.7 million. The company also refinanced several project debts, generating approximately $42.3 million of net cash inflow.

Capital was deployed across the portfolio during the year, including $16.6 million into existing and new industrial projects in Victoria, $7.6 million into New South Wales projects and $4.4 million into Queensland projects.

Impairments and Dividend Position

The improved earnings were accompanied by asset impairments. CVC recognised an Impairment of approximately $13 million against its Liverpool project after the planned rezoning pathway was discontinued. The company also recorded other impairments within its Debt portfolio, citing planning issues, higher costs, construction delays and slower-than-expected sales outcomes.

The Liverpool resolution means CVC will not proceed with the planned Acquisition settlement, which would otherwise have required approximately $124 million plus stamp duty. Instead, the company expects cash inflows of approximately $46 million from the vendor between September 2026 and January 2027.

CVC paid a fully franked special dividend of 5 cents per share on 9 April 2026, linked to the Laverton North property sale. However, the Board has determined that no final dividend will be paid for FY26. The company also stated that it cannot provide a FY27 forecast for results or dividends because of the transactional nature of its operations.

Portfolio Progress and FY27

Several projects advanced during FY26. Officer South expanded following the acquisition of an adjoining 12-hectare parcel, taking the expected developable area to approximately 28 hectares. Truganina progressed through the Precinct Structure Plan process, while Marsden Park North moved further through its rezoning pathway.

At Donnybrook, CVC entered into a conditional contract covering approximately 19 hectares, with completion expected in FY28. Other projects, including Lake Orr, Woolloongabba, South Morang and Norwell Valley, also progressed through planning or development stages.

CVC expects a number of assets to become liquid over the next three to four years as planning and rezoning processes progress. The company has also indicated that reducing gearing, meeting funding commitments and maintaining cash availability will remain important considerations.

Conclusion

CVC Limited's FY26 results show a significant year-on-year increase in income, underlying profit, Shareholder NPAT and cash, supported by property realisations including the Laverton North sale. However, the decline in net assets, project impairments and absence of a final dividend highlight the uneven nature of earnings and Capital returns. With several major projects still dependent on planning, rezoning and development milestones, CVC enters FY27 with a portfolio focused on future realisation, alongside the need to manage funding commitments and project execution.