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Highlights:
- Statutory Profit Rebound: Lendlease Group (ASX:LLC) reported a $48 million statutory profit for 1H FY25, recovering from a $136 million loss in the prior period.
- Operational Profit Surge: Operating profit after tax (OPAT) reached $122 million, marking a $133 million increase, while segment operating EBITDA rose 39% to $375 million.
- Cost Reductions and Earnings Shift: Corporate costs fell 61% to $57 million, while improved earnings from development and investments were partly offset by lower construction and CRU contributions.
Lendlease (ASX:LLC) Delivers Profit Growth Amid Strategic Execution
Lendlease Group (ASX:LLC) has delivered a financial turnaround for the first half of FY25, marking a return to profitability as a strategic overhaul continues to gain traction. The company recorded a statutory profit after tax of $48 million for the six months ending December 31, a significant recovery from the $136 million statutory loss in the prior corresponding period.
Operating profit after tax (OPAT), recently redefined by Lendlease to exclude only investment property revaluations, rose to $122 million—an increase of $133 million year-over-year. Additionally, segment operating EBITDA climbed 39% to $375 million, supported by an IDC contribution of $341 million.
The financial rebound was underpinned by improved earnings from Lendlease's development and investment segments, though the company reported lower contributions from construction and CRU. A major reduction in corporate costs also contributed to the improved financial outcome. Corporate expenses declined 61% to $57 million, reflecting restructuring charges incurred in the first half of FY24 and realized cost savings.
Lendlease has been executing a strategic simplification of its operations, aiming to strengthen its balance sheet and optimize capital allocation. Group Chief Executive Officer Tony Lombardo highlighted the impact of ongoing restructuring efforts, noting that key financial metrics reflect the progress made since the strategic shift was introduced last year.
The company's priorities remain centered on operational efficiency, capital management, and long-term earnings growth. Actions taken to streamline operations have positioned Lendlease for improved financial performance, with continued emphasis on disciplined capital allocation and security holder returns.
As Lendlease progresses through the second half of FY25, market observers will be watching how the company sustains its financial momentum amid evolving industry conditions. The latest results indicate that cost reductions, strategic simplifications, and targeted investment initiatives are beginning to reshape the group's financial trajectory.
