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LendLease Group (LLESY)
OTHER OTC:LLESY
US Market
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LendLease Group (LLESY) AI Stock Analysis

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LLESY

LendLease Group

(OTC:LLESY)

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Neutral 45 (OpenAI - Gpt-5.6Sol)
Rating:45Neutral
Price Target:
$2.00
▼(-4.76% Downside)
Action:Reiterated
Date:08/21/26
The score is held down primarily by weak financial performance—especially heavy cash burn, recent losses, and thin margins—along with bearish technical positioning below key moving averages. These negatives are partly offset by management’s FY'27 IDC earnings growth guidance and a high dividend yield, but elevated leverage/debt metrics and CRU-related losses keep the overall risk profile high.
Positive Factors
Construction growth and backlog
Strong revenue growth, contract wins and backlog expansion improve forward workload visibility. The growing fee-based component may also support more durable margins and reduce reliance on individual project completions.
Negative Factors
Persistent cash burn and volatile profitability
Large operating and free-cash-flow outflows reduce financial flexibility and increase dependence on asset sales or funding. Falling revenue, thin gross margins and recurring earnings volatility also leave limited protection against execution setbacks.
Read all positive and negative factors
Positive Factors
Negative Factors
Construction growth and backlog
Strong revenue growth, contract wins and backlog expansion improve forward workload visibility. The growing fee-based component may also support more durable margins and reduce reliance on individual project completions.
Read all positive factors

LendLease Group (LLESY) vs. SPDR S&P 500 ETF (SPY)

LendLease Group Business Overview & Revenue Model

Company Description
Lendlease Group is a global real estate and investment firm with operations spanning Australia, Asia, Europe, and the Americas. The company's activities are structured into three main divisions: Development, Construction, and Investments. The Deve...
How the Company Makes Money
Lendlease makes money primarily through a combination of (1) development-related earnings, (2) construction and project delivery income, and (3) investment management fees and returns from real estate assets and funds. Development earnings are gen...

LendLease Group Earnings Call Summary

Earnings Call Date:Aug 16, 2026
(Q4-2026)
|
Next Earnings Date:Feb 15, 2027
Earnings Call Sentiment Neutral
The call presented a mixed picture: strong operational recovery and momentum in IDC (notably Construction) with meaningful pipeline growth, liquidity and cost savings, but these positives were offset by substantial CRU losses, non‑cash impairments, an elevated net debt position and reduced development earnings. Management outlined clear levers for deleveraging and capital recycling and provided improved IDC guidance for FY '27, though execution and timing of asset sales remain key near‑term risks.
Positive Updates
IDC earnings delivered at top end of guidance
IDC earnings per security of $0.337 were delivered for FY '26 (top end of guidance). IDC segment EBITDA was $542 million driven by a stable investments result and a strong recovery in Construction.
Negative Updates
Large statutory and operating losses driven by CRU
Group recorded a statutory loss after tax of $749 million and an operating profit after tax loss of $567 million. The Capital Release Unit (CRU) recorded an EBITDA loss of $500 million (including $196 million of operating costs) and contributed an $800 million loss to the group result.
Read all updates
Q4-2026 Updates
Negative
IDC earnings delivered at top end of guidance
IDC earnings per security of $0.337 were delivered for FY '26 (top end of guidance). IDC segment EBITDA was $542 million driven by a stable investments result and a strong recovery in Construction.
Read all positive updates
Company Guidance
Guidance for FY'27 included IDC earnings per security of $0.37–$0.41 (versus $0.337 in FY'26, ~16% EPS growth at the midpoint) with no specific earnings guidance for CRU; management expects a development earnings recovery supported by ~A$1.2bn of Lendlease gross proceeds/presales at One Circular Quay and Victoria Harbour, a development pipeline of A$13.2bn, >A$8bn of completions across FY'27–FY'29 and ~89% of WIP held in JVs/fund‑throughs; Construction, which in FY'26 delivered A$3.9bn revenue, A$167m EBITDA and a 4.3% margin (new work secured A$6.4bn, backlog A$8.4bn, preferred work A$5.2bn, A$13bn active bids), is expected to grow revenue and target a 3–4% EBITDA margin through the cycle; balance‑sheet targets include pro‑forma underlying gearing ~30.2% (reported gearing 30.3%, underlying 37.7% excl. hybrids), net debt ~A$4.6bn at 30 June, ~A$4bn of committed/available liquidity and A$1.3bn of contracted transactions (c.A$500m settled) with management aiming to recycle ~A$1.0–1.5bn from investments/development and reduce co‑investment to ~5–10%; FY'26 headwinds cited were a statutory loss after tax A$749m (operating loss after tax A$567m), IDC EBITDA A$542m, CRU EBITDA loss A$500m (A$340m impairments, A$196m operating costs), net overheads down 22% to A$363m (exit run‑rate ~A$350m) and corporate costs A$221m (A$107m underlying + A$114m additional charges).

LendLease Group Financial Statement Overview

Summary
Overall financial quality is weak: thin gross margins (~5–8%), revenue has declined across recent years, and profitability has been volatile with a sharp swing to a large loss in 2026 (net margin about -13.8%). Cash flow is the biggest concern with deeply negative operating and free cash flow in 2026 (about -$1.33B OCF and -$1.34B FCF). The balance sheet is workable but trending weaker as debt-to-equity rose to ~0.97 in 2026.
Income Statement
22
Negative
Balance Sheet
48
Neutral
Cash Flow
18
Very Negative
BreakdownJun 2026Jun 2025Jun 2024Jun 2023Jun 2022
Income Statement
Total Revenue5.33B7.60B9.22B10.40B8.97B
Gross Profit304.20M404.00M776.00M587.00M682.00M
EBITDA-307.14M739.00M-974.00M63.00M87.00M
Net Income-732.63M225.00M-1.50B-232.00M-99.00M
Balance Sheet
Total Assets13.94B14.13B16.77B18.99B17.81B
Cash, Cash Equivalents and Short-Term Investments751.04M621.00M1.00B900.00M1.30B
Total Debt4.69B4.05B4.51B3.67B2.77B
Total Liabilities9.09B8.99B11.89B12.35B10.84B
Stockholders Equity4.83B5.11B4.84B6.62B6.94B
Cash Flow
Free Cash Flow-1.34B-783.00M-118.00M-568.00M-920.00M
Operating Cash Flow-1.33B-775.00M-55.00M-486.00M-835.00M
Investing Cash Flow239.65M928.00M-552.00M-758.00M554.00M
Financing Cash Flow1.26B-532.00M723.00M723.00M-108.00M

LendLease Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.10
Price Trends
50DMA
2.06
Positive
100DMA
2.09
Positive
200DMA
2.54
Negative
Market Momentum
MACD
<0.01
Negative
RSI
58.96
Neutral
STOCH
101.02
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LLESY, the sentiment is Positive. The current price of 2.1 is above the 20-day moving average (MA) of 2.08, above the 50-day MA of 2.06, and below the 200-day MA of 2.54, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 58.96 is Neutral, neither overbought nor oversold. The STOCH value of 101.02 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LLESY.

LendLease Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
$3.08B-18.57-5.14%6.78%-1.36%-405.10%
65
Neutral
$2.17B12.193.79%4.94%3.15%1.96%
63
Neutral
$619.79M16.838.69%8.99%-15.21%-0.30%
58
Neutral
$3.83B12.757.18%31.83%7.70%
45
Neutral
$1.44B-2.67-14.46%7.53%-27.04%-454.78%
45
Neutral
$51.09M-0.50-15.12%15.04%-25.30%5.00%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LLESY
LendLease Group
2.16
-1.28
-37.13%
HHH
Howard Hughes Holdings
63.11
-13.42
-17.54%
RMR
The RMR Group
19.22
4.35
29.24%
PK
Park Hotels & Resorts
15.22
4.31
39.48%
GPMT
Granite Point Mortgage
1.01
-1.62
-61.64%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 21, 2026