Cedar Woods Properties Ltd (ASX: CWP) shares are surging higher on Tuesday.
At one stage today, the ASX All Ords stock was rocketing as much as 12% to $8.90.
The property development company's shares have pulled back since then but remain up 5% at the time of writing.
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Why is this ASX All Ords stock rocketing?
Investors have been buying the company's shares following the release of its half-year results, which revealed record numbers.
According to the release, revenue for the half rose 40% to $274.8 million. Management advised that its portfolio performed strongly in the first half, particularly in the second quarter, with growth in sales volumes achieved in all states.
The ASX All Ords stock achieved record sales volume of 859 gross sales during the first half, up 18% on the 732 recorded in the prior corresponding period.
In addition, its gross margin improved to 31%, up from 26% a year earlier. This underpinned a 163% increase in net profit after tax to $39.6 million.
As a result, Cedar Woods declared a fully franked interim dividend of 14 cents per share, up 40% on last year's interim dividend of 10 cents per share.
What did management say?
The ASX All Ords stock's managing director, Nathan Blackburne, was rightfully pleased with the half. He said:
This exceptional first half result helps set the Company up for a record full year profit result. We are upgrading guidance to 30% to 35% NPAT growth, a result that will deliver very strong shareholder return metrics. The upgrade has been made possible by strong sales conditions which has enabled additional price growth, further settlements and significantly lower marketing spend.
The Company's second half settlements are significantly derisked by presales. Following consistently strong demand for Cedar Woods' diversified products, the Company as at 31 December has amassed $748m in presales, up from $642m in the prior corresponding period.
Outlook
As mentioned above, presales climbed to $748 million by the end of December. This is up 16% on the prior period, providing strong earnings visibility into the second half and beyond.
So much so, management has upgraded its full-year guidance. The company now expects FY 2026 net profit after tax growth of 30% to 35%. This is up from previous guidance of a minimum of 20% growth.
It also advised that further profit growth is anticipated in FY 2027.
