Lendlease Group (AU:LLC)
ASX:LLC
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Lendlease Group
(Sydney:LLC)
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Rating:44Neutral
Price Target:
AU$3.00
▼(-44.44% Downside)
Action:ReiteratedDate:03/26/26
The score is weighed down primarily by weak financial performance—especially negative operating/free cash flow and declining revenue—and a bearish technical trend with the stock well below major moving averages. A high dividend yield and reiterated guidance with strong liquidity provide some support, but losses and execution risk around deleveraging/capital recycling keep the overall score low.
Positive Factors
Construction backlog & secured work
A large, growing construction backlog and substantial secured/preferred work provide durable revenue visibility and operational leverage. Sustained project pipeline supports steady fee and margin generation, smoothing cyclical swings from development outcomes and underpinning medium‑term cash conversion from contracted activity.
Negative Factors
Weak cash generation
Persistent negative operating and free cash flow signal structural cash conversion problems. Over time this forces reliance on asset recycling, debt facilities or capital markets to fund operations and development spend, raising execution risk if disposals delay and constraining ability to self‑fund growth or absorb shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Construction backlog & secured work
A large, growing construction backlog and substantial secured/preferred work provide durable revenue visibility and operational leverage. Sustained project pipeline supports steady fee and margin generation, smoothing cyclical swings from development outcomes and underpinning medium‑term cash conversion from contracted activity.
Read all positive factors
Lendlease Group (LLC) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$2.29B
Dividend Yield4.55%
Average Volume (3M)1.26M
Price to Earnings (P/E)―
Beta (1Y)1.29
Revenue Growth-17.23%
EPS GrowthN/A
CountryAU
Employees13,000
SectorReal Estate
Sector Strength53
IndustryReal Estate - Diversified
Share Statistics
EPS (TTM)-0.47
Shares Outstanding690,891,200
10 Day Avg. Volume1,439,622
30 Day Avg. Volume1,256,232
Financial Highlights & Ratios
PEG Ratio-0.14
Price to Book (P/B)0.72
Price to Sales (P/S)0.48
P/FCF Ratio-4.68
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$5.27Price Target Upside-2.50% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)-0.18
Revenue Forecast (FY)AU$6.92B
Lendlease Group Business Overview & Revenue Model
Company Description
Lendlease Group operates as an integrated real estate and investment company in Australia, Asia, Europe, and the Americas. It operates through Development, Construction, and Investments segments. The Development segment develops inner-city mixed-u...
How the Company Makes Money
Lendlease makes money primarily through (1) development profits, (2) construction and project management income, and (3) investment/asset management earnings tied to real estate capital it manages.
1) Development profits (property and urban regen...
Lendlease Group Earnings Call Summary
Earnings Call Date:Feb 22, 2026
(Q2-2026)
| Next Earnings Date:Aug 17, 2026
Earnings Call Sentiment Neutral
Balanced/Neutral — The call highlighted meaningful operational progress: strong construction revenue growth (+22%), a growing development pipeline and active investment platform (FUM stable at $48.7 billion), solid liquidity of $3.3 billion, and clear capital recycling plans (completed/announced $2.8 billion and targeting $3.0 billion of transactions). However, those positives were offset by significant near‑term weakness: statutory and operating losses (statutory loss $318m; OPAT loss $200m), a large CRU EBITDA loss (~$284m) driven by noncash impairments and provisions (~$180m pre‑tax), and elevated underlying gearing (32.9% excluding hybrids) that is dependent on timely completion of transactions to reach the 15% gearing objective. Management presented credible remediation actions (cost savings, targeted disposals and a clear roadmap), but execution and transaction timing remain key risks.Positive Updates
Progress on Capital Recycling (CRU) Exits
Completed or announced exits of $2.8 billion of CRU assets; $500 million of new asset sales in the half; targeting a further $1.5 billion of CRU asset transactions in H2 (and targeting $2 billion of CRU recycling in FY'26 overall) with a broader $3.0 billion of announced/active IDC + CRU transactions targeted to complete in H2 FY'26.
Negative Updates
Significant Statutory and Operating Losses
Statutory loss for the half of $318 million; group operating (OPAT) loss of $200 million versus an OPAT gain of $122 million in prior period; operating EBITDA fell to a loss of $135 million versus a prior gain of $318 million.
Read all updates
Q2-2026 Updates
Positive
Negative
Progress on Capital Recycling (CRU) Exits
Completed or announced exits of $2.8 billion of CRU assets; $500 million of new asset sales in the half; targeting a further $1.5 billion of CRU asset transactions in H2 (and targeting $2 billion of CRU recycling in FY'26 overall) with a broader $3.0 billion of announced/active IDC + CRU transactions targeted to complete in H2 FY'26.
Read all positive updates
Company Guidance
Management reiterated FY'26 guidance that IDC earnings are expected to be $0.28–$0.34 per security (H1 delivered $0.126/sec, implying H2 must deliver $0.154–$0.214/sec), and reconfirmed a target underlying group gearing of 15% by end‑FY'26 (H1 reported gearing 25.8% including hybrid benefit, 32.9% excluding it) supported by a pipeline of announced and active transactions of about $3.0 billion (including ~$0.64bn contracted TRX/Crown Estate items, >$1.0bn in three exclusivities and other assets) and a CRU recycling target of $2.0 billion for FY'26 (H1 progress $0.5bn; target additional $1.5bn in H2); liquidity at $3.3bn (comprised of $2.7bn undrawn debt + $0.6bn cash) and reported net debt (ex‑hybrid) of $3.3bn are expected to fall as transactions settle, with estimated net production spend of ~A$400m (IDC) and ~A$200m (CRU) in the period; cost savings of A$50m are being pursued (A$21m run‑rate actioned in H1) to hit an overhead exit run‑rate of ~A$350m by end FY'26; plus medium‑term targets include FUM growth of 8–10% p.a. (FUM A$48.7bn with A$1.5bn additions and A$4.7bn being raised), Investment management margins >40% in FY'27 rising toward 50% by FY'30, Development completions of ~A$4.5bn in FY'27 (FY'28 ~A$3.9bn) and Construction revenues to exceed A$4.5bn in FY'27 and A$5bn in FY'28 with sustainable EBITDA margins of 3–4%.Lendlease Group Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
55
Neutral
Cash Flow
30
Negative
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.92B | 7.60B | 9.22B | 10.23B | 8.82B | 9.77B |
| Gross Profit | 278.00M | 404.00M | 776.00M | 587.00M | 682.00M | 639.00M |
| EBITDA | -199.00M | 739.00M | -974.00M | 87.00M | 87.00M | -196.00M |
| Net Income | -141.00M | 225.00M | -1.50B | -232.00M | -99.00M | 222.00M |
Balance Sheet | ||||||
| Total Assets | 14.11B | 14.13B | 16.77B | 18.99B | 17.81B | 17.69B |
| Cash, Cash Equivalents and Short-Term Investments | 646.00M | 621.00M | 1.00B | 900.00M | 1.30B | 1.66B |
| Total Debt | 4.38B | 4.05B | 4.18B | 3.67B | 2.77B | 2.83B |
| Total Liabilities | 8.54B | 8.99B | 11.89B | 12.35B | 10.84B | 10.74B |
| Stockholders Equity | 5.54B | 5.11B | 4.84B | 6.62B | 6.94B | 6.93B |
Cash Flow | ||||||
| Free Cash Flow | -840.00M | -783.00M | -118.00M | -568.00M | -920.00M | 347.00M |
| Operating Cash Flow | -833.00M | -775.00M | -55.00M | -486.00M | -835.00M | 468.00M |
| Investing Cash Flow | 535.00M | 928.00M | -552.00M | -758.00M | 554.00M | -214.00M |
| Financing Cash Flow | 190.00M | -532.00M | 723.00M | 723.00M | -108.00M | -148.00M |
Lendlease Group Technical Analysis
Negative
5.40
Price Trends
4.24
Negative
4.69
Negative
4.99
Negative
Market Momentum
-0.28
Positive
24.58
Positive
21.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:LLC, the sentiment is Negative. The current price of 5.4 is above the 20-day moving average (MA) of 3.64, above the 50-day MA of 4.24, and above the 200-day MA of 4.99, indicating a bearish trend. The MACD of -0.28 indicates Positive momentum. The RSI at 24.58 is Positive, neither overbought nor oversold. The STOCH value of 21.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:LLC.
Lendlease Group Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | AU$10.47B | 11.82 | 8.50% | 4.29% | 4.75% | 170.39% | |
74 Outperform | AU$17.89B | 12.29 | 9.54% | 4.13% | 5.44% | 231.88% | |
70 Outperform | AU$9.16B | 10.60 | 19.38% | 1.97% | 15.06% | 47.66% | |
69 Neutral | AU$8.83B | 10.58 | 7.84% | 4.41% | 12.66% | ― | |
66 Neutral | AU$7.14B | 6.34 | 4.23% | 4.39% | -18.48% | ― | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
44 Neutral | AU$2.29B | -2.78 | -2.65% | 4.55% | -17.23% | ― |
* Real Estate Sector Average
AU:LLC
Lendlease Group
3.26
-2.70
-45.33%
AU:CHC
Charter Hall Group
19.03
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4.57
0.37
8.81%
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1.80
-0.25
-12.15%
AU:SCG
Scentre Group
3.43
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5.02%
AU:SGP
Stockland
4.31
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-10.00%
Lendlease Group Corporate Events
Lendlease Director Increases Holding via Distribution Reinvestment Plan
Mar 20, 2026
Lendlease Group has disclosed a minor change in director Lianne Buck’s holding of ordinary stapled securities, following an issue of additional units under the company’s Distribution Reinvestment Plan. Buck’s direct interest incr...
Macquarie Group Ceases to Be Substantial Holder in Lendlease
Mar 18, 2026
Macquarie Group Limited and a wide range of its controlled entities have lodged a notice that they have ceased to be substantial holders in Lendlease Group. The filing, made under Australian corporations law and signed by a Macquarie assistant com...
Lendlease Seeks ASX Quotation for New Stapled Securities Issued via Distribution Plan
Mar 18, 2026
Lendlease Group has applied to the ASX for quotation of 243,307 fully paid ordinary stapled securities issued under its dividend or distribution plan. The new securities, carrying the LLC ticker, are dated 18 March 2026 and will increase the numbe...
Lendlease Trust Sets March Distribution and Details MIT Withholding Components
Mar 10, 2026
Lendlease Trust, an attribution managed investment trust within Lendlease Group, has declared a distribution of 6.204589 cents per unit for the six months to 31 December 2025, payable on 18 March 2026. The trust confirms its status as a withholdin...
Lendlease updates DRP pricing and FX details on December-half distribution
Mar 10, 2026
Lendlease Group has updated its earlier notification regarding a distribution on its fully paid stapled securities for the six-month period ended 31 December 2025. The update advises the final dividend reinvestment plan pricing following completio...
Lendlease Trust Releases Half-Year 2025 Consolidated Financial Report
Feb 22, 2026
Lendlease Trust has released its consolidated financial report for the half year ended 31 December 2025, providing investors with updated financial information on the trust’s performance and position. The report’s lodgement signals ong...
Lendlease Declares Semi‑Annual Distribution on Stapled Securities
Feb 22, 2026
Lendlease Group has declared a distribution of AUD 0.06204589 per fully paid ordinary stapled security for the six‑month period ended 31 December 2025. The distribution will trade ex‑distribution on 27 February 2026, with a record date...
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.