Residential development company Peet Ltd (ASX: PPC) has upgraded its earnings guidance for the second time this calendar year, saying it now expects full-year net profit to come in at $98 to $100 million.
This figure is up from $86 to $90 million the company forecast at the release of its half-year results, which was itself an upgrade.
The new figure amounts to an increase over FY25's net profit of 67% to 71%.
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Strong pipeline paying off
The company said re the upgrade:
This revised guidance is primarily driven by continued strong market conditions across Western Australia and Queensland and Peet's capacity to deliver into the prevailing favourable market conditions. Peet has responded to the sustained, elevated demand with the acceleration of its construction program, thereby bringing product to market sooner than previously expected. This strong demand in key markets has underpinned price growth and consistent sales volumes throughout FY26.
Peet said it was continuing to target growth in FY27, "supported by its established pipeline, visibility of contracts on hand, and demand across key markets, with outcomes subject to prevailing market conditions and settlement timing''.
The company added:
Whilst population growth and constrained housing supply remain favourable for the sector, the Group continues to monitor the impact of interest rate rises and cost of living pressures on customers, as well as broader geopolitical and macroeconomic factors.
Dividend yield solid
Peet in February declared an interim dividend of 6.5 cents per share, which was an increase on the previous year's interim dividend of 2.75 cents.
Based on the company's current share price, it is paying a trailing dividend of 7.21%.
The company previously had a buyback running, which was closed during the first half having bought back about 4% of the company's shares on issue.
At the time of releasing its first-half results, the company said it had cash and undrawn facilities worth more than $200 million with which to fund its growth plans.
Peet made a net operating profit of $50.9 million for the half, up 102%, with operating earnings per share of 10.88 cents also up 102%.
The company's gearing level was 24.7%, within its target range of 20% to 30%.
The company added:
The Group's EBITDA margin strengthened to 34%, an improvement of eight percentage points on the prior corresponding period, while net tangible assets increased to $1.44 per share, up 5% since 30 June 2025.
Peet shares were 4.2% higher on Thursday morning at $1.66. The company is valued at $746.7 million.
