The Lendlease Corporation Ltd (ASX: LLC) share price is focus today after the property and infrastructure group reported a statutory loss after tax of $318 million for the half year ended 31 December 2025, driven by non-cash negative investment property revaluations and impairments.
The company's Investments, Development and Construction segment delivered EBITDA of $204 million, with a strong showing from its Australian construction pipeline and $4.7 billion in new development projects secured.
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What did Lendlease report?
- Statutory loss after tax of $(318) million (HY25: $48 million profit)
- Operating profit after tax (OPAT) of $(200) million, including $87 million from Investments, Development and Construction (IDC) and $(287) million from Capital Release Unit (CRU)
- IDC segment EBITDA: $204 million; IDC earnings per stapled security of 12.6 cents
- CRU segment EBITDA: $(284) million, reflecting write downs and transaction timing
- Interim distribution of 6.2 cents per security
- Net debt reduced to $3.3 billion; statutory gearing of 25.8%
What else do investors need to know?
Lendlease's CRU continues its capital recycling program, with $2.8 billion of asset sales announced or completed since May 2024 and a further $1.5 billion targeted in FY26. The company's Australian construction business performed strongly, securing $4.0 billion of new work and lifting backlog revenue to $8.0 billion, up 36% on the prior period.
In the Investments segment, funds under management remained stable at $48.7 billion, with $1.8 billion raised for new vehicles and mandates. The Group highlighted improved project performance and a reduction in corporate costs, with overheads 14% lower on the prior period as efficiency and cost-out programs continue.
What did Lendlease management say?
Group Chief Executive Officer, Tony Lombardo, said:
FY26 is a transitional year, with our core operating segments performing in line with expectation. We anticipate stronger Investments, Development and Construction earnings in the second half and into FY27. The Group continues to make considerable progress on its strategy with momentum building across its core operations. Our Development and Construction pipelines remain strong, and we are seeing continued growth in investor partnering and mandate activity. Our focus remains on driving long-term value creation for our securityholders, with enhanced earnings visibility from FY27, and a material reduction of net debt through further capital recycling.
What's next for Lendlease?
Lendlease maintains its FY26 guidance for IDC segment earnings per security at 28–34 cents, with second half earnings and transactional profits expected to be higher. No FY26 EPS guidance is provided for the CRU segment. The Group continues to prioritise strengthening its balance sheet, executing on capital recycling initiatives and further reducing net debt.
Key medium-term priorities include growing the Investments platform, restocking the Australian development pipeline, and targeting high-quality construction work. With $3.0 billion in announced or in-progress transactions, Lendlease expects enhanced earnings visibility, especially from major project completions in FY27 and FY28.
Lendlease share price snapshot
Over the past 12 months, Lendlease shares have declined 27%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 9% over the same period.
