LendLease Group
OTC:LLESY
LendLease Group
LendLease Group, founded in 1958 by Dutch émigré Dick Dusseldorp, has grown from its humble beginnings in the construction business in Sydney, Australia, to become a global property and infrastructure powerhouse. Its journey has been driven by a vision of creating vibrant and sustainable urban places, a credo that has taken the company from project to project across the world's major cities. At its core, LendLease operates a model that combines project development, construction, and investment management. By integrating these services, the company is able to take visionary projects from blueprint to reality, maximizing value at every stage of the development lifecycle. This model allows it to tackle large-scale urban transformations that are both financially rewarding and designed for longevity.
The company's revenue streams are as diverse as its global presence, spanning continents from the Americas to Asia, and incorporating complex urban developments, residential and commercial constructions, and innovative public spaces. LendLease makes money by meticulously orchestrating these projects, managing risks and generating returns through their multifaceted approach. They leverage their considerable expertise to secure land, develop detailed project plans, and draw investment from third-party capital partners. As the projects come to fruition, LendLease benefits not only from the construction phase but also through long-term value creation via ownership stakes, the establishment of sustainable communities, and recurring management fees. Thus, the company's success weaves a narrative of sustainable profitability, underpinned by its ability to adapt and thrive in the ever-evolving global marketplace.
LendLease Group, founded in 1958 by Dutch émigré Dick Dusseldorp, has grown from its humble beginnings in the construction business in Sydney, Australia, to become a global property and infrastructure powerhouse. Its journey has been driven by a vision of creating vibrant and sustainable urban places, a credo that has taken the company from project to project across the world's major cities. At its core, LendLease operates a model that combines project development, construction, and investment management. By integrating these services, the company is able to take visionary projects from blueprint to reality, maximizing value at every stage of the development lifecycle. This model allows it to tackle large-scale urban transformations that are both financially rewarding and designed for longevity.
The company's revenue streams are as diverse as its global presence, spanning continents from the Americas to Asia, and incorporating complex urban developments, residential and commercial constructions, and innovative public spaces. LendLease makes money by meticulously orchestrating these projects, managing risks and generating returns through their multifaceted approach. They leverage their considerable expertise to secure land, develop detailed project plans, and draw investment from third-party capital partners. As the projects come to fruition, LendLease benefits not only from the construction phase but also through long-term value creation via ownership stakes, the establishment of sustainable communities, and recurring management fees. Thus, the company's success weaves a narrative of sustainable profitability, underpinned by its ability to adapt and thrive in the ever-evolving global marketplace.
Transitional Year: FY '26 is a strategic transition year for Lendlease, with major focus on capital recycling, cost reduction, and repositioning for future growth.
Statutory Loss: The group recorded a statutory loss of $318 million for the half, impacted by noncash write-downs and impairments, primarily in the U.S., U.K., and Singapore.
IDC Earnings Guidance Maintained: IDC earnings per security guidance is unchanged at $0.28 to $0.34 for FY '26, with expectations for a stronger second half.
Capital Recycling Progress: $2.8 billion of Capital Release Unit (CRU) assets exited or announced, with a further $1.5 billion targeted for the second half.
Gearing Target: Underlying group gearing reported at 25.8%, with a target to reduce to 15% by end of FY '26, dependent on completion of $3 billion in asset sales.
Cost Reduction: Net overheads reduced by $58 million to $197 million, with a targeted exit run rate of $350 million by end of FY '26.
Strong Construction Performance: Construction revenue grew 22% and backlog revenue is up 36% versus FY '25, supporting growth outlook.
Leadership Changes: CFO Simon Dixon departing; Andrew Nieland named incoming CFO, with other senior leadership transitions also noted.
