Lendlease Group · ASX:LLC
Lendlease — HY26 Earnings Presentation
59 slides from Lendlease's earnings presentation, Feb 23, 2026
Slide 1: Lendlease Group 2026 Half Year Results Announcement, Presentation and Appendix
23 February 2026 Lendlease Group 2026 Half Year Results Announcement, Presentation and Appendix Lendlease Group today announced its results for the half year ended 31 December 2025. Attached is the HY26 Results Announcement, Presentation and Appendix. ENDS FOR FURTHER INFORMATION, PLEASE CONTACT: In
Slide 2: Momentum across core operations; IDC segment EBITDA of $204m
23 February 2026 Momentum across core operations; IDC segment EBITDA of $204m, FY26 guidance maintained Lendlease has continued to deliver operational progress in HY26, with strong Construction earnings, $4.7b of new Australian development projects secured and $4.4b of active portfolio management in
Slide 3: Group CEO commentary and IDC segment results
Group Chief Executive Officer, Tony Lombardo said: “FY26 is a transitional year, with our core operating segments performing in line with expectation. We anticipate stronger Investments, Development and Construction earnings in the second half and into FY27. The Group continues to make considerable
Slide 4: Capital Release Unit (CRU)
Capital Release Unit (CRU) The primary purpose of CRU is to accelerate capital recycling. As such, CRU is not a guided earnings segment. • Announced or completed capital recycling initiatives of $0.5b in the period, with $2.8b of total CRU capital recycling announced and completed since May 2024 (re
Slide 5: Outlook
Outlook 3 FY26 is a transitional year, with IDC earnings guidance maintained at 28–34 cents per security. The second half EPS contribution from IDC is expected to be higher than the first half, supported by a similar underlying operating performance and transactional profits. Consistent with prior d
Slide 6: Appendix: CRU capital recycling progress since May 2024
Appendix: CRU capital recycling progress since May 2024 Lendlease has announced or completed ~$2.8b of capital recycling transactions in CRU since its May 2024 strategy update. Management focus remains on balancing value realisation and speed of execution, with outcomes for the balance of the CRU po
Slide 7: 2026 Half Year Results
23 February 2026 2026 Half Year Results Victoria Cross North Sydney, Australia
Slide 8: Acknowledgement of Country
2026 Half Year Results – February 2026 2 Acknowledgement of Country As an investor, developer, builder and manager of assets on land across Australia, we pay our respects to the Traditional Owners, especially their Elders, past and present, and value their custodianship of these lands.
Slide 9: Our Strategic Progress
2026 Half Year Results – February 2026 3 Our Strategic Progress
Slide 10: FY26 is a transitional year with good progress on May 2024 strategy
2026 Half Year Results – February 2026 4 FY26 is a transitional year with good progress on May 2024 strategy IDCoperations IDC operations IDCcapital CRU operations recycling IDC operations Buyback Investments, Development $2.8b announced or Increased contractual and Construction (IDC) completed recy
Slide 11: Our HY26 performance
2026 Half Year Results – February 2026 5 Our HY26 performance FY26 a transitional year for IDC, stronger FY27 outlook; Purpose of CRU remains to accelerate capital recycling $204m IDC Segment EBITDA • Investments EBITDA of $101m, underlying earnings stable Financial position • Development EBITDA of
Slide 12: Performance and Operations
2026 Half Year Results – February 2026 6 Performance and Operations
Slide 13: Investments
2026 Half Year Results – February 2026 7 Investments 1 Focused on performance, liquidity and growth Operating performance Investment management platform ($b) Investment management 4% • Funds Under Management stable at $48.7b 6% − FUM additions of $1.5b offset by $1.8b of completed divestments Workpl
Slide 14: Development
2026 Half Year Results – February 2026 8 Development 1 Pre-sales supporting strong FY27 earnings; $4.7b of new Australian projects secured from $10b FY26 target Operating performance Australian Development activity ($b) Current pipeline 10.3 Completions • Australian pipeline of $13.6b; UK and Singap
Slide 15: Construction
2026 Half Year Results – February 2026 9 Construction 1 Accelerated revenue and margin growth in the half; $4b of high quality work secured to support future earnings Operating performance HY26 Backlog revenue 2 HY26 revenue of $1.9b, up 22% from $1.5b Social infrastructure • Revenue growth versus H
Slide 16: Financial Performance
2026 Half Year Results – February 2026 10 Financial Performance
Slide 17: Financial performance – Group
2026 Half Year Results – February 2026 11 Financial performance – Group 1 $m HY25 HY26 Group commentary IDC EBITDA 341 204 IDC Segment Operating EBITDA - Investments 228 101 • Lower at $204m, largely due to transactional profits in HY25 - Development 138 34 • Lower contributions from Investments and
Slide 18: Financial performance – IDC segments
2026 Half Year Results – February 2026 12 Financial performance – IDC segments 1 Investments ($m) HY25 HY26 Investments Management revenue 111 118 • Total EBITDA of $101m reflected a stable underlying performance, with the prior Management EBITDA 49 48 period including earnings of $129m associated w
Slide 19: Financial performance – Capital Release Unit
2026 Half Year Results – February 2026 13 Financial performance – Capital Release Unit 1 Capital Release Unit ($) FY25 HY26 CRU commentary Gross CRU capital ($m) 4,579 3,785 • The primary purpose of CRU is to accelerate capital recycling Gross capital per security ($) 6.64 5.48 − Announced further $
Slide 20: May 2024 cost out targets exceeded; pursuing further savings in FY26
2026 Half Year Results – February 2026 14 May 2024 cost out targets exceeded; pursuing further savings in FY26 1 Statutory disclosures on overhead costs FY26 target cost savings Note 7 – financial statements • In HY26, net overheads reduced from $255m in HY25 to $197m; reduction in $m FY22 FY23 FY24
Slide 21: Net debt
2026 Half Year Results – February 2026 15 Net debt Net Debt1 ($b) Cash flow movements Investments: asset divestments, fees and distributions, partially offset by Investments, Development CRU acquisition of APPFI units and operating costs and Construction Development: net cash outflow of $0.3b led by
Slide 22: Group debt and liquidity
2026 Half Year Results – February 2026 16 Group debt and liquidity Treasury overview Capital and liquidity management FY25 HY26 • Statutory gearing was 25.8% at HY26, including the benefit of hybrid securities Net debt $m 3,433 3,315 − $0.9b hybrid securities were issued in September and October of
Slide 23: Outlook and Strategy
2026 Half Year Results – February 2026 17 Outlook and Strategy
Slide 24: FY26 financial outlook
2026 Half Year Results – February 2026 18 FY26 financial outlook 1 Lendlease is focused on growing and improving the performance of its IDC segments, while balancing value realisation and speed of execution within CRU Earnings 1 Capital and Costs EPS contribution from IDC of 28 to 34 cents is antici
Slide 25: Outlook for medium term growth and earnings across IDC
2026 Half Year Results – February 2026 19 Outlook for medium term growth and earnings across IDC Generating double digit equity returns from IDC operations in the medium term FY27 FY28 FY29 FY30 8%+ target FUM growth Grow FUM at an 8-10% average per annum, while creating and realizing value from exi
Slide 26: Delivering on our strategy
2026 Half Year Results – February 2026 20 Delivering on our strategy Building momentum Continued execution Improved outlook across core operations of strategic initiatives for FY27 in HY26 announced in May 2024 Simplification and de-risking Investments $1.8b of new of the Group; exit of internationa
Slide 27: Analyst Q&A
2026 Half Year Results – February 2026 21 Analyst Q&A
Slide 28: Appendix
2026 Half Year Results – February 2026 22 Appendix
Slide 29: Lendlease operating segments
2026 Half Year Results – February 2026 23 Lendlease operating segments We leverage our investment management and asset creation skills – including development and construction – to deliver city shaping projects and create strong and connected communities Investments Development Construction Capital
Slide 30: Health and Safety
2026 Half Year Results – February 2026 24 Health and Safety HY26 summary Key performance indicators at record rates • No corporate reportable fatalities across the Group in HY26 Critical Incident Frequency Rate1 Lost Time Injury Frequency Rate1 • Maintained a high percentage of Operations without a
Slide 31: Environmental, Social and Governance
2026 Half Year Results – February 2026 25 Environmental, Social and Governance GRESB Awards Received 6 Global and 17 Regional ESG Databook 2025 GRESB Sector Leadership HY26 key achievements Released FY25 ESG Databook Awards Community Day Workplaces with Impact Modern Slavery Celebrated the 30th anni
Slide 32: Investments
2026 Half Year Results – February 2026 26 Investments
Slide 33: Investments: focused on performance, liquidity and growth
2026 Half Year Results – February 2026 27 Investments1 Focused on performance, liquidity and growth Global network of long-standing client relationships Historical performance (incl. international) -------------- EBITDA margin Average 45.9% Real estate skills to add value at the asset level 42.5% 42
Slide 34: Funds under management by product
2026 Half Year Results – February 2026 28 Funds under management1 by product FUM growth supported by $1.5b of asset creation FUM ($b) By product ($b) FY25 Additions Divestments Revals FX & Other3 HY26 1.5 (1.8) Workplace 25.7 0.2 - - 0.8 26.7 48.9 0.1 48.7 Residential2 3.9 0.4 - (0.1) - 4.2 Retail 1
Slide 35: Investment platforms by region
2026 Half Year Results – February 2026 29 Investment platforms by region Margins across Asia Pacific driving returns; focused on improving profitability Strong returns have been achieved in $m FY19 FY20 FY21 FY22 FY23 FY24 FY25 HY26 established Australia and Asia platforms Australia FUM ($b) 24.8 24
Slide 36: Co-investment and fund summary
2026 Half Year Results – February 2026 30 Co-investment and fund summary1 HY26 funds management platform Equity Weighted avg. Total assets2 Co-investment Country Sector No. of assets Leased WALE cap rate $b $m # % Years % Australian Prime Property Fund Commercial 5.9 298 Australia Workplace 21 92.0%
Slide 37: Investments growth strategies
2026 Half Year Results – February 2026 31 Investments growth strategies Leveraging our investment management capabilities to drive strong performance and new products Asia Pacific International Asia Pacific Australia and US Flagship Vehicles Core Mandates & Clubs Value add Credit Existing Vehicles a
Slide 38: Development
2026 Half Year Results – February 2026 32 Development
Slide 39: Development: leading mixed-use, urban regeneration capability
2026 Half Year Results – February 2026 33 Development 1 Leading mixed-use, urban regeneration capability Experience across a range of sectors and products Historical performance (Australia)2 -------------- Strong government and capital partner relationships 29.2% 28.6% ROIC Average -------------- Ma
Slide 40: Summary of major projects
2026 Half Year Results – February 2026 34 Development 1 Summary of major projects Presold5 Invested capital 4 End value 6 Margin 7 Delivery timeline / Pre let Target Project City Sector 2 Model 3 Ownership FY25 HY26 % $b % Start Profit realised completion Development Australia Melbourne Quarter West
Slide 41: Development growth strategies
2026 Half Year Results – February 2026 35 Development growth strategies Growing our Australian Development pipeline to support future earnings In-portfolio opportunities of ~$12b • Athlete Village, RNA Showgrounds, Brisbane; under negotiation with Qld Government • Rozelle, Sydney: harbourside land h
Slide 42: Construction
2026 Half Year Results – February 2026 36 Construction
Slide 43: Construction: Australia-only builder with deep sector expertise
2026 Half Year Results – February 2026 37 Construction1 Australia-only builder with deep sector expertise and client relationships Internal and external delivery capability Historical performance (Australia) -------------- Exposure to a diverse range of sectors 3.9% EBITDA Margin Average 3.8% ------
Slide 44: Construction backlog, revenue and preferred book
2026 Half Year Results – February 2026 38 Construction backlog, revenue and preferred book Backlog1 ($b) Historical Revenue and Backlog1 ($b) Revenue Backlog 8.0 7.0 6.3 5.9 5.7 5.7 4.0 (1.9) 3.7 3.9 3.2 3.2 3.4 3.0 2.9 1.9 8.0 FY20 FY21 FY22 FY23 FY24 FY25 HY26 5.9 HY26 preferred3 book by client ty
Slide 45: Construction growth strategies
2026 Half Year Results – February 2026 39 Construction growth strategies Scaling our market leading Australian platform New Work Secured (NWS) exceptionally strong; large pipeline of high-quality projects to support up to $5b+ of annual external revenues in the medium term • Backlog revenue of $8.0b
Slide 46: Capital Release Unit
2026 Half Year Results – February 2026 40 Capital Release Unit
Slide 47: Capital Release Unit
2026 Half Year Results – February 2026 41 Capital Release Unit Maximising value capture from our international development projects Orderly capital release from overseas development projects while maximising value and Land and inventory Joint ventures Land management preserving key stakeholder curre
Slide 48: Capital Release Unit – gross invested capital
2026 Half Year Results – February 2026 42 Capital Release Unit – gross invested capital Region or City Project Sector Capital model Ownership FY25 Inv. capital ($m) HY26 Inv. capital ($m) On market sales 1,341 1,333 Malaysia TRX retail, hotel, office Mixed use Joint Venture 60% Australia Keyton Reti
Slide 49: Proforma and Historical Financials
2026 Half Year Results – February 2026 43 Proforma and Historical Financials
Slide 50: Group financial and operating metrics
2026 Half Year Results – February 2026 44 Group financial and operating metrics1 FY19 FY20 FY21 FY22 FY23 FY24 FY25 HY25 HY26 FY19 FY20 FY21 FY22 FY23 FY24 FY25 HY25 HY26 Earnings Ratios and other data Statutory profit/(loss) after tax ($m) 467 (310) 222 (99) (232) (1,502) 225 48 (318) Operating EBI
Slide 51: Financial performance – IDC and CRU
2026 Half Year Results – February 2026 45 Financial performance – IDC and CRU 1 HY25 HY26 Allocation methodologies $m IDC CRU Group IDC CRU Group Proforma information presented on this and the following two pages, for Segment EBITDA 341 34 375 204 (284) (80) HY26 and earlier periods, are presented o
Slide 52: Historical financials – Segments
2026 Half Year Results – February 2026 46 Historical financials (pro-forma and reported) – Segments1 $m FY19 FY20 FY21 FY22 FY23 FY24 FY25 HY26 $m FY19 FY20 FY21 FY22 FY23 FY24 FY25 HY26 Investments (incl. international) Development FUM ($b) 35.2 36.0 39.6 44.4 48.3 47.3 48.9 48.7 EBITDA 512 157 354
Slide 53: Historical financials – Group
2026 Half Year Results – February 2026 47 Historical financials (pro-forma and reported) – Group1 $m FY19 FY20 FY21 FY22 FY23 FY24 FY25 HY26 $m FY19 FY20 FY21 FY22 FY23 FY24 FY25 HY26 Segment EBITDA Operating Earnings per security (cents) I / D / C (ex-CRU) 832 499 610 343 444 443 662 204 I / D / C
Slide 54: Other Financial Information
2026 Half Year Results – February 2026 48 Other Financial Information
Slide 55: Capital Allocation Framework
2026 Half Year Results – February 2026 49 Capital Allocation Framework Released capital will be Operating Capital Maximise cash flow through reallocated based on our productivity productivity lower costs, productivity, transparent hierarchy for technology and culture Net operating cash flow capital
Slide 56: Capital management and target EBITDA mix
2026 Half Year Results – February 2026 50 Capital management and target EBITDA mix Group EBITDA target 1 Capital structure 1 Invested capital 1 (post-simplification) Consolidated gearing 2 >75% >60% 50% 5-15% 3 Credit rating EBITDA 5 15% Investment grade 35% <25% <40% Distribution policy 30-50% payo
Slide 57: Glossary – defined Development terms
2026 Half Year Results – February 2026 51 Glossary – defined Development terms Completion Based on expected completion date of underlying buildings, subject to change in delivery program. Not indicative of cash or profit recognition Funding model structured through a forward sale to a capital partne
Slide 58: Important notice
2026 Half Year Results – February 2026 52 Important notice This document (including the Appendix) has been prepared and is issued by Lendlease Corporation Limited (ACN 000 226 228) (Lendlease) in good faith. Neither Lendlease, nor Lendlease Trust (including any of their controlled entities) (collect
Slide 59: Slide 59