The Lendlease Corporation Ltd (ASX: LLC) share price is in focus today as the company holds its annual general meeting (AGM). In FY25, the company reported a return to statutory and operating profit.
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What did Lendlease report in FY25?
- Statutory profit after tax of $225 million for FY25
- Operating profit of $386 million
- Full year distribution and dividend of 23.0 cents per security (41% payout ratio)
- Over $2.5 billion in capital recycling initiatives announced or completed
- International construction operations divested, reducing complexity and risk
- Annual run-rate cost savings of $141 million achieved
What else do investors need to know?
Lendlease significantly simplified its business in FY25 by divesting its international construction operations and streamlining its management structure. This has helped sharpen the company's focus on its core markets and improve its risk profile.
Key strategic priorities for the year ahead include further strengthening the balance sheet, replenishing the Australian Development pipeline, and delivering growth across its Australian and international Investments platforms. The company also continues to execute on targeted capital recycling, with $2 billion in asset recycling aimed for FY26 and key sales processes now well advanced.
Looking ahead, Lendlease has a strong pipeline of new development opportunities, including $25 billion in bids and plans to secure over $10 billion in FY26. Progress in international funds management, highlighted by new partnerships and mandates, is set to support growth in funds under management over the medium term.
What did Lendlease management say?
Group Chief Executive Officer and Managing Director Tony Lombardo said:
As we continue to position the company for sustainable growth and target returns above the Group's cost of equity, pleasingly, the Group returned to statutory and operating profit this year, with the actions taken as part of our 2024 strategy update contributing to strong growth in Earnings per Security.
What's next for Lendlease?
FY26 is described as a transition year for Lendlease, with operational priorities focused on freeing up capital through divestments, replenishing the development pipeline, and growing its construction and investment businesses. The Board remains confident in proceeding with an on-market securities buyback of up to $500 million, expected to commence in the second half of FY26 once divestments are finalised.
Beyond FY26, management sees strong prospects for sustainable growth and improved returns, supported by a simplified business, cost reductions, and a sharpened focus on core markets. Key projects such as One Circular Quay Sydney, Victoria Harbour Melbourne, and the new joint venture with The Crown Estate in the UK are expected to provide solid earnings visibility in FY27 and FY28.
Lendlease share price snapshot
Ove the past 12 months, Lendlease shares have declined 18%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.
