The Goodman Group (ASX: GMG) share price is in focus today after the company delivered a strong FY26, with operating profit up 15.7% to $2.67 billion and operating EPS climbing 10.1% to 129.9 cents per security.
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What did Goodman Group report?
- Operating profit of $2,674.5 million, up 15.7% from FY25
- Operating earnings per security (OEPS) of 129.9 cents, up 10.1%
- Statutory profit of $2,778.7 million
- Net tangible assets per security of $11.79, up 7% on FY25
- Distribution per security of 30.0 cents for FY26
- Work in progress (WIP) at $19.7 billion, with data centres making up 78%
What else do investors need to know?
Goodman Group's data centre developments are driving growth, with $15 billion of work in progress focused primarily on supply-constrained global cities. Approximately half of the projects are leased or in advanced negotiations, highlighting strong customer demand.
The Group maintains a robust balance sheet with low gearing at 6.5% and significant liquidity of $6.4 billion. Partnerships add another $12.4 billion in cash, undrawn lines, and equity commitments, giving Goodman flexibility to fund further development and investment.
What did Goodman Group management say?
Commenting on the results, Greg Goodman, Group Chief Executive Officer, said:
Goodman Group's strong operating result positions the business well as a global provider of digital infrastructure. Goodman has been active in data centres since 2005 and over the past five years, we've deliberately deepened our exposure to the sector by securing the sites, power and capital needed in major metro markets.
Demand is structural across both logistics and data centres. Automation and robotics continue to drive logistics requirements while scarcity of power and land remains the key constraint on AI and cloud growth supporting data centre demand. Hyperscaler capex expectations continue to rise, with many customers facing undersupply into 2027 and 2028. This has encouraged us to progress our development workbook and grow it by over 50% over the year to $19.7 billion, including 0.5 GW of data centre projects underway.
We are funding it from a strong capital position, with low gearing and substantial liquidity across the Group and our Partnerships. Leasing is progressing alongside construction, with a 20-year lease for 50 MW recently signed with a hyperscale customer in Tokyo, and advanced negotiations for whole buildings underway across several sites. We are pleased with the progress as we move through the program of works and engage with customers and investors at the optimal time.
What's next for Goodman Group?
The company is targeting FY27 operating EPS growth of 9%, aiming to capture growing demand for logistics and data centre infrastructure. Strong customer commitments and a substantial development workbook set a solid foundation for continued long-term growth.
Goodman remains focused on disciplined capital management, leveraging its strong balance sheet and partnerships to selectively expand and support both development and investment opportunities. There's an emphasis on sustainability, with ongoing contributions to community organisations and ambitious ESG initiatives.
Goodman Group share price snapshot
The Goodman share price has been out of form over the past 12 months, dropping almost 20%. This compares to a modest 1.5% gain by the S&P/ASX 200 index (ASX: XJO) over the same period.
