Lendlease shares climb after swing to full-year profit
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More news: Lendlease shares jumped in morning trade after the property investor swung to a full-year profit of $225 million.
Shares were up 6.3% to $5.90 at 11:45am AEST, having retreated around 7% over the last 12 months.
UBS analyst Tom Bodor noted that the group's FY26 guidance for operating earnings per share would mark a 45% decline on FY25 at the midpoint. However, he said this is consistent with market expectations and FY26 has been "well flagged as a transition year for earnings".
Lendlease swings to full-year profit as revenue tumbles
The news: Property investor Lendlease Group has swung to a full-year profit of $225 million, having reported a $1.5 billion loss a year ago, but saw revenue shrink 17.3% to $7.75 billion.
The numbers: The return to profit came after last year's result was impacted by $1.38 billion in impairments and a 10% reduction in investment property valuations. Lendlease recorded a $161 million, or 3%, reduction in investment property valuations in FY25.
Corporate costs decreased 67% year on year to $127 million, reflecting cost savings and materially lower restructuring charges in the year.
The company declared a final dividend of 17 cents per share, up from 10 cents last year.
The context: Last year, Lendlease unveiled a new strategy to offload $4.5 billion worth of assets from its international operations, simplify its management structure and undertake cost cuts.
Of this target, the group secured $2.5 billion in announced or completed capital recycling initiatives in FY25. It is targeting a further $2 billion in FY26, with $1 billion "at an advanced stage", it said.
What they said: "Our FY25 result reflects significant progress in simplifying the group and refocusing on our core capabilities across investments, development and construction, to drive long-term value for securityholders," said group CEO Tony Lombardo.
