Lendlease Group (LLC) Q4 2026 Earnings Report

The call presented a mixed picture: strong operational progress in the IDC segments (notably Construction), meaningful cost reductions, substantial liquidity and transactional successes in Investments, and a constructive FY '27 IDC earnings outlook. Offsetting these positives were large CRU-related losses, significant impairments and provisions, reduced FUM and fee income, and elevated net debt/gearing driven by timing delays in capital recycling. The company outlined clear levers to deleverage and improve returns, but near-term financial metrics remain impacted by legacy CRU issues and timing of transactions.

Management guided IDC earnings per security of $0.37–$0.41 for FY‑27 (≈16% EPS growth at the midpoint) after IDC delivered FY‑26 EBITDA of $542m, while reiterating no specific FY‑27 guidance for the Capital Release Unit (CRU). Construction is expected to keep growing from FY‑26 revenue of $3.9bn (+29% YoY) and FY‑26 EBITDA $167m (EBITDA margin 4.3%), with a through‑the‑cycle EBITDA margin target of 3–4% supported by an $8.4bn backlog (+42%), $6.4bn of new work (+28%), a $5.2bn preferred workbook and $13bn of active bids. Development guidance is underpinned by a $13.2bn pipeline, ~89% of WIP in JVs/fund‑throughs, >$8bn of completions in FY‑27–FY‑29 and circa $1.2bn of Lendlease gross proceeds / presales expected to settle in FY‑27; Investments continue to recycle capital after a $5bn FUM reduction while facilitating ~$7bn of partner liquidity and targeting average co‑invest holdings of 5–10%. On the balance sheet, reported gearing was 30.3% (underlying 37.7%; pro‑forma 30.2% after $1.3bn contracted transactions), available liquidity ≈ $4bn, FY‑26 net overheads fell 22% to $363m with an exit run‑rate ≈ $350m, FY‑26 distribution was $0.157 per security, and net finance costs are expected to remain elevated with cash inflows weighted to H2.