The Mirvac Group (ASX: MGR) share price is in focus today after the company posted a 5% boost in first-half operating profit to $248 million and grew earnings per security to 6.3 cents.
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What did Mirvac Group report?
- EBIT of $398 million, up 10% from 1H25
- Operating profit after tax of $248 million, up 5% on the prior year
- Statutory profit of $319 million, a significant increase from $1 million in 1H25
- Half-year distribution of 4.7 cents per security, up from 4.5cpss
- Net tangible assets rose to $2.30 per security (from $2.26 at FY25)
- Residential sales surged 38%, with 1,304 lots exchanged and settlements up 22%
What else do investors need to know?
Mirvac continued its momentum in the Living segment, restocking its residential pipeline with around 2,300 new lots and settling 835 lots for the half. The business also secured two new land lease sites and completed strong volumes in both settlements and sales, signalling ongoing demand for quality housing.
On the capital front, Mirvac entered a notable joint venture with Mitsubishi Estate to deliver the Harbourside project in Sydney, raising approximately $1 billion. The company's $1.7 billion LIV Mirvac Build to Rent Fund also saw recapitalisation, with major investor Australian Retirement Trust acquiring a significant stake.
Mirvac's commercial portfolio remained resilient, reporting high occupancy (98%) and 4.4% like-for-like net operating income growth. The group's strong balance sheet featured headline gearing of 25.8% and available liquidity of about $1.1 billion.
What did Mirvac Group management say?
Mirvac's CEO & Managing Director, Campbell Hanan, said:
We delivered a strong performance across all parts of the business in the first half of FY26, underpinned by the continued execution of our strategy. Positive momentum saw residential sales increase 38 per cent year-on-year, with settlements up 22 per cent and a recovery in gross margins. The significant restocking of our development pipeline is also in line with our focus on Living and Premium-grade Office, and, coupled with a number of key launches and completions in the coming 18 months, provides excellent future earnings visibility.
What's next for Mirvac Group?
Mirvac has reaffirmed its FY26 guidance, targeting operating earnings of 12.8 to 13.0 cents per security and distributions of 9.5 cents, subject to key assumptions. The business expects continued residential momentum, with targets for 2,000 to 2,300 lot settlements in FY26 and a focus on growing future pipeline projects.
Ongoing investment in high-quality, well-located commercial assets and strategic capital partnerships are anticipated to strengthen the group's income streams and support earnings growth. Management sees recent margin restoration and robust sales as providing good visibility and near-term confidence.
Mirvac Group share price snapshot
Over the past 12 months, Mirvac Group shares have declined 11%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.
