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Highlights
- LendLease Group reports a significant turnaround with a statutory profit of $48 million for the first half of FY25, recovering from a $136 million loss in the same period last year.
- The company's operating profit after tax (OPAT) surged to $122 million, an increase of $133 million, reflecting the impact of its strategic initiatives.
- EBITDA for the development and investment segments rose by 39%, while corporate costs dropped by 61%, indicating effective restructuring and cost-saving measures.
LendLease Group (ASX:LLC) has reported a notable financial recovery for the first half of the fiscal year 2025, demonstrating the positive impact of the strategic changes it initiated in the previous year. The company revealed a statutory profit after tax of $48 million for the half-year ending December 31, a dramatic improvement from the $136 million loss it recorded during the same period in FY24.
This turnaround is attributed to the company’s updated business strategy, which has begun to show tangible results. Operating profit after tax (OPAT), a new metric introduced by LendLease that excludes investment property revaluations, came in at $122 million, marking a substantial increase of $133 million compared to the prior year.
In terms of operating performance, LendLease posted a 39% rise in segment operating EBITDA (earnings before interest, taxes, depreciation, and amortization), reaching $375 million. A significant contribution to this result came from its International Development and Construction (IDC) division, which added $341 million to the total.
Despite these results, the company acknowledged that its improved earnings from the development and investments sectors were partly offset by lower contributions from the construction and Commercial Real Estate (CRU) segments. However, LendLease was able to manage its corporate costs more effectively, achieving a remarkable 61% reduction, down to $57 million. This decrease was driven by restructuring actions taken in the first half of FY24 and the realization of ongoing cost-saving initiatives.
“Our results for 1H25 reflect significant progress in line with our strategy announced last year, as well as a return to statutory profit,” commented Tony Lombardo, the Group’s CEO. Lombardo emphasized that the actions taken in the previous year had been key drivers behind this improved financial performance.
As of now, LendLease’s stock is trading at $6.74, reflecting the market's positive reception of its financial recovery and strategic repositioning. The company’s ability to balance robust growth in specific sectors with efficient cost management has positioned it for a outlook for the remainder of FY25.
