• Statutory loss after tax of $318m, including non-cash negative investment property revaluations and impairments
• Operating loss after tax of $200m, with losses in Capital Release Unit partially offset by profits in Investments, Development and Construction
• Interim distribution of 6.2 cents per unit from Lendlease Trust

Lendlease Group has reported a statutory loss after tax of $318m for the half-year ended 31 December 2025, compared to a statutory profit of $48m in the prior period. This includes non-cash negative investment property revaluations and impairments of $118m primarily in the US, UK and Singapore. The operating loss after tax of $200m is comprised of $87m in profits from Investments, Development and Construction (IDC) and $287m in losses from the Capital Release Unit (CRU). The CRU loss includes a $95m write down of Communities land parcels and further provisions of $44m in the exited international construction businesses. IDC segment EBITDA of $204m was down from $341m in the prior period, with an improved performance from Construction being the highlight. CRU segment EBITDA of $284m loss was down from a prior period gain of $34m, reflecting non-cash write downs and provisions of $180m. Corporate costs decreased 4% to $55m. The Group's net finance costs of $85m decreased due to lower average cost of debt and lower average net debt levels. Reported gearing was 25.8%, with underlying gearing of 32.9% (excluding the benefit of hybrid issuance). The Group continues to target underlying gearing of 15% by the end of FY26, subject to completion of targeted capital recycling initiatives across CRU and IDC. The Group remains focused on strengthening its balance sheet alongside profitably growing its Investments platform, restocking its Australian Development pipeline and winning new work in Australian Construction.

IDC earnings guidance maintained at 28-34 cents per security for FY26, with the second half EPS contribution expected to be higher than the first half. CRU costs will continue to be closely managed and should reduce as capital recycling transactions complete, although are expected to remain elevated in 2H FY26.

FY26 is a transitional year, with improved earnings visibility in IDC segments expected to drive improved earnings from Development in FY27 and FY28. The Group's strategic direction remains unchanged, with a continued focus on disciplined delivery, performance and long-term value creation.