• Operating Profit after Tax of $122m, up $133m
• Significant progress on strategic initiatives, including $2.2b in capital recycling
• Exited international construction operations

Lendlease Group today announced its results for the half year ended 31 December 2024. The Group recorded a Statutory Profit after Tax of $48m, compared to a Statutory Loss after Tax of $136m in the prior corresponding period. Operating Profit after Tax (OPAT) was $122m for the period, up $133m. Segment Operating EBITDA increased by 39 per cent to $375m, including an IDC contribution of $341m. Improved Development and Investments earnings were partially offset by lower contributions from Construction and the Capital Release Unit (CRU). Corporate costs decreased 61 per cent to $57m, due to the absence of restructuring charges and cost savings. The Group has made significant progress on its strategy announced in May 2024, including completing or announcing $2.2b of the targeted $2.8b capital recycling, exiting its international construction operations, and removing the regional management structure. The Australian development pipeline closed the period at $10.0b, down from $11.8b at FY24. Construction revenues were down, and Segment Operating EBITDA was impacted by losses on two projects. The CRU segment recorded lower earnings, with the divestment of international operations partially offset by gains from the Australian Communities sale. The Group anticipates Group Earnings Per Security of 54 to 62 cents in FY25, with gearing expected to materially decrease in 2H25.

Group Earnings Per Security of 54 to 62 cents is anticipated in FY25, with ~18 cents secured in 1H25 and 36 to 44 cents anticipated in 2H25. Gearing is expected to materially decrease in 2H25, moving down towards, but remaining above, the top end of the target 5-15 per cent range, and is expected to be within the target range by the end of FY26.

The Group remains focused on growing and improving the performance of the Investments, Development and Construction (IDC) segments. The primary focus of the Capital Release Unit (CRU) is to accelerate the release of capital. The Group intends to announce a securities buyback, in accordance with the guidelines announced at its May 2024 strategy.