• Statutory profit after tax of $48m, up from $136m loss in prior period
• Operating profit after tax of $122m, up $133m on prior period
• Segment operating EBITDA up 39% to $375m
• Gearing expected to materially decrease in 2H25 towards 5-15% target range

Lendlease Group has reported its results for the half year ended 31 December 2024, with a statutory profit after tax of $48m, compared to a $136m loss in the prior corresponding period. Operating profit after tax was $122m, up $133m on the prior period, driven by improved performance across the Investments and Development segments. Segment operating EBITDA increased by 39% to $375m, with the Investments and Development segments partially offsetting lower contributions from Construction and the Capital Release Unit. Corporate costs decreased 61% to $57m, predominantly due to the absence of redundancy related restructuring charges and cost savings. Net finance costs increased 77% to $136m due to higher average net debt and a higher average cost of debt. Gearing increased from 22% at FY24 to 27% at 1H25, with a pathway to de-leverage the balance sheet expected in 2H25 as the Group completes capital recycling initiatives and apartment settlements. The Group's operational priorities for FY25 remain progressing capital recycling initiatives, growing the international Investments platform, replenishing the Australian Development pipeline, and furthering cost out initiatives.

The Group expects to complete $2.2b in capital recycling transactions in FY25, which will contribute approximately $70m to FY25 operating profit after tax. Gearing is expected to materially decrease in 2H25, moving down towards, but remaining above, the top end of the target 5-15% range, and is expected to be within the target range by the end of FY26.

The Group's operational priorities for FY25 remain progressing capital recycling initiatives, growing the international Investments platform, replenishing the Australian Development pipeline, and furthering cost out initiatives. The Group has achieved strong progress in the first nine months of its refreshed strategy and the focus for the remainder of FY25 remains on execution of the strategy and building on the strong progress achieved to date, as the Group seeks to maximise securityholder returns, continues to simplify its operations and recycle further capital.