Lendlease Corporation Ltd (ASX: LLC) shares hit a new 52-week low on Monday, falling to $4.31. During lunch-hour trade, the ASX share clawed its way back to $4.36, still down 4.8%.
Lendlease reported its results for the half year that ended on 31 December 2025 on Monday. Investors were less than impressed after the property and infrastructure group reported a statutory loss after tax of $318 million.
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Prestigious precincts
Lendlease was once considered a global powerhouse in property development and urban regeneration. The real estate group designs, builds, and manages large commercial, residential, and infrastructure projects.
Its fingerprints are on some of the world's most prestigious precincts, such as Sydney's Barangaroo and the Elephant & Castle redevelopment in London. A series of earnings downgrades, budget blowouts, delayed project deliveries, and rising interest rates have battered the company, Lendlease shares, and investors' sentiment.
Over the past 12 months, Lendlease shares have declined 30.5%, trailing the S&P/ASX 200 Index (ASX: XJO), which has risen 9% over the same period.
Loss signals transition
The reported loss on Monday was a sharp swing from profit in the prior period as investment property revaluations and impairments weighed heavily on the bottom line. Core operating profit after tax was also negative, underscoring the challenges still facing the group's turnaround.
While the ASX 200 stock has lagged the broader market, the company has undergone a significant operational turnaround. Management exited international construction operations, simplified the business, and lifted distributions.
No surprise, management described the first half as transitional. It's signalling expectations for stronger earnings in the second half and into FY27 as project completions and development milestones come through.
Group Chief Executive Officer, Tony Lombardo, who will be stepping down in August, commented:
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.
Billions in pipeline
Despite the headline loss, there were encouraging operational points buried in the results. The Investments, Development and Construction (IDC) segment delivered positive EBITDA, and the Australian construction arm performed well, securing $4 billion in new project work.
Lendlease also declared an interim distribution of 6.2 cents per security and managed to reduce net debt, a key part of its capital recycling strategy.
While the results highlight the bumps in Lendlease's recovery path, the pipeline strength and capital management progress might give investors something to build on.
