The Lendlease Group (ASX: LLC) share price is in focus today after the company reported its FY26 results, delivering Investments, Development and Construction (IDC) earnings at the top end of guidance but recording a statutory loss due to costs and one-off impairments in its Capital Release Unit (CRU). Full year IDC earnings per security came in at 33.7 cents, while a 15.7 cent per security distribution was declared.
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What did Lendlease report?
- Statutory loss after tax: $(749) million, largely due to non-cash impairments in CRU
- FY26 Operating Profit after Tax: $(567) million, with $233 million from IDC; $(800) million from CRU
- IDC Segment EBITDA: $542 million; Construction EBITDA margin 4.3% (above target range)
- $1.2 billion of contracted CRU transactions in FY26; $3.4 billion contracted or completed to date
- Distribution of 15.7 cents per stapled security (Trust distribution only, no company dividend)
- Available liquidity: $4.0 billion; reported statutory net debt increased to $3.7 billion
What else do investors need to know?
The CRU continues to progress asset recycling, with a total of $3.4 billion contracted or completed, including $1.2 billion in the year just finished. Lendlease achieved a 22% reduction in net overheads, reaching a run-rate of ~$350 million, with further cost savings targeted in FY27.
Operational highlights included strong Construction performance with $6.4 billion of new work secured, and the Australian development pipeline expanded to $13.2 billion. The new Group CEO, Nick O'Neil, will commence in late August 2026 to lead the refreshed strategy.
What did Lendlease management say?
Joint Interim Chief Executive Officer and Group Chief Financial Officer, Andrew Nieland, said:
FY26 was a year of meaningful progress as we continued to sharpen the Group's focus and build momentum across our Investments, Development and Construction businesses. We delivered IDC earnings of 33.7 cents per security, at the top of our guidance and made solid operational progress. While gearing remains above our target, announced asset sales and an easing capital expenditure cycle provide a clearer pathway to net debt reduction, with ample liquidity available as we execute on our plans.
The Group's overall financial result was impacted by costs, and non-cash impairments and provisions in CRU, however the actions taken during the year have improved our strategic position and risk profile. Strengthening the balance sheet remains our priority, alongside delivering growth across our IDC businesses. We will continue to pursue disciplined capital management while creating a more focused Group capable of delivering consistent returns and long-term value for securityholders.
What's next for Lendlease?
Looking ahead to FY27, Lendlease expects a stronger year for IDC earnings, guiding to 37–41 cents per security, supported by pre-sold apartment revenues and continued construction growth. Investment earnings may ease due to lower co-investment and funds management income as portfolio recycling continues.
The company remains focused on balance sheet strength, ongoing cost reductions, and progressing CRU asset sales, with the goal of reducing net debt and gearing even further.
Lendlease share price snapshot
Over the past 12 months, the Lendlease share price has underperformed the S&P/ASX 200 index (ASX: XJO) with a disappointing 45% decline, reflecting the company's recent financial challenges and strategic transition.
