• $2.5 billion in capital recycling initiatives announced or completed
• International construction operations divested, lowering complexity and risk
• Streamlined management structure, reducing corporate costs
• Targeting $500 million on-market securities buyback in 2H FY2026

Lendlease's Chairman highlighted the progress made in the past 12 months, including over $2.5 billion in capital recycling initiatives, the divestment of international construction operations, and the streamlining of the management structure to reduce corporate costs. This has contributed to improved financial outcomes, with Statutory Profit after Tax of $225 million and Operating Profit of $386 million in FY25. The Board is also working to renew its composition, reducing the size to seven Non-Executive Directors and welcoming new director Lianne Buck. Looking ahead, FY26 is seen as a transition year, with priorities including further balance sheet strengthening, capital returns to shareholders, pipeline replenishment, and growth of the Investments and Construction businesses. The company is confident in its growth prospects from FY27 onwards, driven by key development completions, Investments platform scaling, and Construction revenue growth. The CEO outlined progress across the business segments, including strong performance in Investments, a $3 billion pipeline rebuild in Development, and a robust outlook for the Construction business. The company is targeting $2 billion in capital recycling by the end of FY26 to support its growth initiatives and balance sheet objectives.

The Group is targeting Earnings per Security of 28 to 34 cents for its IDC segments in FY26, with earnings skewed to the second half. No earnings guidance has been provided for the Capital Release Unit due to uncertainty around transaction timing and valuation outcomes.

Beyond FY26, the company has strong conviction in its growth trajectory, with benefits expected from lower debt levels, lower costs, and stronger business operations. In Investments, the company anticipates improving margins and Funds Under Management growth. In Development, higher completions in FY27 and FY28 provide visibility to improved medium-term earnings. In Construction, annual revenues are expected to grow strongly over the medium term, delivering EBITDA margins of 3 to 4 per cent.