Lendlease swings to $749M statutory loss in FY26
- Lendlease posted a full-year statutory loss of $749 million, primarily impacted by its capital release unit.
- The core development division met guidance expectations, though overall financial results pushed shares down to $3.01.
- Executives stated the company will focus on reducing net debt and streamlining global operations in fiscal 2027.
Lendlease (ASX:LLC) reported a $749 million full-year statutory loss due to non-cash impairments within its capital release unit.
This is compared to $225 million revenue in the prior-year period.
The result contrasted with core construction operations, which achieved the top of market expectations at 33.7 cents per security.
Revenue for the period fell to $5.343 billion, down from $7.75 billion.
“Strengthening the balance sheet remains our priority, alongside delivering growth across our IDC businesses,” said Lendlease Joint Interim CEO Andrew Nieland.
The underlying data highlighted delayed asset transactions, contributing to an overall operating deficit of $567 million.
Following the announcement, the Lendlease share price was down at $3.01, while management projected an easing capital expenditure cycle.
Cost reductions of more than 20% were achieved, delivering an FY26 exit run rate of ~$350 million for net overheads, with further cost savings targeted in FY27.
The company is systematically divesting international assets to lower a reported statutory net debt position of $3.7 billion.
Incoming CEO Nick O'Neil will commence Aug. 24 to manage this ongoing balance sheet restructuring programme.
