Full Year 2025 LendLease Group Earnings Call Transcript
Key Points
- Lendlease Group (LLESF) achieved significant progress in its business turnaround, exceeding its target of $125 million in annualized run rate savings by unlocking $141 million.
- The company completed or announced over $2.5 billion in capital recycling transactions, with a further $2 billion targeted for FY26, demonstrating strong capital management.
- The IDC segments delivered a 13.6% operating return on equity, surpassing the group's cost of equity, indicating strong core business performance.
- Lendlease Group (LLESF) reported a 44% increase in distributions per security, reflecting a strong payout ratio and commitment to returning capital to security holders.
- The company secured $5 billion in new construction work, contributing to a strong backlog revenue of $5.9 billion, positioning the business for future revenue and earnings growth.
- Revenue in the construction segment declined by 13% due to the completion of several large projects and delays in new project commencements.
- Net debt increased to $3.4 billion, influenced by $600 million of crude transaction timing and negative $400 million from construction working capital and FX translation.
- The group recorded a statutory profit of $225 million, impacted by $161 million of negative investment property revaluations.
- Operating EBITDA from the construction segment declined to $33 million, down from $60 million in FY24, due to losses on two projects in the first half.
- The company faces ongoing challenges in the Chinese market, with slow progress due to the property cycle, affecting potential outcomes in that region.
Ladies and gentlemen, thank you for standing by and welcome to Lendlease's FY25 results briefing. At this time, all participants are in listen-only mode. There will be a presentation followed by a question and answer session with management and Lendleases covering research analysts, at which time, if you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I must advise you that this call is being recorded today, Monday, 18th August 2025. I would now like to hand the call over to Mr. Tony Lombardo, Group Chief Executive Officer.
Thank you, Tony. Please go ahead.
Good morning and thank you for joining the Lendlease 2025 full year results presentation. I'm Tony Lombardo, Chief Executive Officer and managing director of Lendlease.
With me is Simon Dixon, Chief Financial Officer.
Sitting here at Barangaroo in Sydney, we're on the land of the Gadigal people, and I extend my respects to their
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