Lendlease (ASX:LLC) Returns to Profitability, Maintains Earnings Outlook

2 min read | February 17, 2025 12:37 PM AEDT | By Team Kalkine Media

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Lendlease (ASX:LLC) Returns to Profitability, Maintains Earnings Outlook — Image source: Shutterstock

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Highlights

Lendlease (ASX:LLC) reports a half-year profit of $48 million, reversing a prior loss.

Operating profit after tax surges to $122 million, reflecting strong cost management.

The company reiterates full-year earnings-per-share guidance of 54-62 cents.

Lendlease (ASX:LLC) has made a significant financial turnaround, reporting a statutory profit after tax of $48 million for the first half of the financial year. This marks a strong recovery from a $136 million loss recorded in the same period last year.

The company’s financial performance was influenced by investment property revaluations, which resulted in a $74 million reduction, equating to a 3% decline. Despite this, operating profit after tax stood at $122 million, reflecting a year-on-year increase of $133 million.

A key driver behind this improved profitability has been a sharp reduction in corporate costs. These expenses fell by 61% compared to the previous year, totaling $57 million. The cost savings were largely attributed to Lendlease’s strategic exit from its international construction operations, a move announced in May last year.

Looking ahead, Lendlease has reiterated its full-year earnings-per-share guidance, maintaining a forecast between 54 cents and 62 cents. This projection factors in approximately 18 cents per share already secured in the first half and an anticipated 36-44 cents per share in the second half.

The company remains focused on streamlining its operations and enhancing financial efficiency. As part of this strategy, it is progressing towards its goal of executing $2.8 billion in capital recycling initiatives within the financial year. Additionally, plans for a share buyback are in place, reinforcing its commitment to delivering value to shareholders.

With a clear focus on restructuring and efficiency, Lendlease continues to align its business towards long-term sustainability and growth.

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