Lendlease Earnings: Clear Pathway to Profitability

Lendlease returned to profit in the first half of fiscal 2025, with operating earnings per share of AUD 0.18, compared with negative AUD 0.02 for the same period last year. This met our expectations. We forecast full-year operating EPS of AUD 0.54, at the bottom of the reaffirmed guidance range of AUD 0.54–0.62. Our estimated distributions of AUD 0.16 per security represent a payout ratio of 30%, which is reasonable given Lendlease’s priority to repay debt.