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:Reiterated
Date: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
Strong liquidity buffer
A$3.3bn of liquidity (committed undrawn facilities plus cash) provides durable funding headroom to support project completion and working capital needs, reducing short‑term refinancing pressure. This buffer helps the company execute capital recycling and deleveraging plans without forced distress sales if transactions proceed.
Negative Factors
Negative operating and free cash flow
Persistent negative operating and free cash flow constrains the group's ability to internally fund developments, service debt, or absorb shocks. Over a multi‑month horizon, weak cash conversion increases dependency on asset disposals and external financing, making deleveraging and dividend reliability contingent on execution.
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Positive Factors
Negative Factors
Strong liquidity buffer
A$3.3bn of liquidity (committed undrawn facilities plus cash) provides durable funding headroom to support project completion and working capital needs, reducing short‑term refinancing pressure. This buffer helps the company execute capital recycling and deleveraging plans without forced distress sales if transactions proceed.
Read all positive factors
Lendlease Group (LLC) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$2.16B
Dividend Yield4.55%
Average Volume (3M)1.26M
Price to Earnings (P/E)―
Beta (1Y)1.29
Revenue Growth-32.61%
EPS Growth89.26%
CountryAU
Employees13,000
SectorReal Estate
Sector Strength53
IndustryReal Estate - Diversified
Share Statistics
EPS (TTM)-0.21
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$4.12Price Target Upside-23.74% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)-0.31
Revenue Forecast (FY)AU$6.90B
Lendlease Group Business Overview & Revenue Model
Company Description
Lendlease Group operates as a comprehensive global real estate and investment enterprise, with its activities extending across Australia, Asia, Europe, and the Americas. The company's operations are structured into three core divisions: Developmen...
How the Company Makes Money
Lendlease makes money primarily through (1) development earnings from creating and selling real estate assets (e.g., apartments, commercial properties, and mixed-use precincts) and from development management fees earned for acting as development ...
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
Neutral
5.40
Price Trends
3.01
Positive
3.39
Negative
4.29
Negative
Market Momentum
0.04
Negative
64.32
Neutral
71.31
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:LLC, the sentiment is Neutral. The current price of 5.4 is above the 20-day moving average (MA) of 2.80, above the 50-day MA of 3.01, and above the 200-day MA of 4.29, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 64.32 is Neutral, neither overbought nor oversold. The STOCH value of 71.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | AU$11.17B | 20.72 | 19.38% | 1.97% | 18.04% | 71.29% | |
69 Neutral | AU$9.87B | 12.09 | 7.84% | 4.41% | 3.78% | ― | |
66 Neutral | AU$7.04B | 18.23 | 4.23% | 4.39% | -8.84% | ― | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | AU$10.49B | 12.00 | 8.50% | 4.29% | 9.71% | 93.78% | |
56 Neutral | AU$6.18B | 13.09 | 4.78% | 5.32% | -1.07% | ― | |
44 Neutral | AU$2.16B | -15.05 | -2.65% | 4.55% | -32.61% | 89.26% |
* Real Estate Sector Average
AU:LLC
Lendlease Group
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-38.53%
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Lendlease Group Corporate Events
Lendlease Sells Remaining Keyton Stake as Capital Recycling Tops $3.4 Billion
Jun 25, 2026
Lendlease has agreed to divest its remaining 25.1% interest in the Keyton Retirement Living Trust to existing co-investor Aware Super for $525 million, with the net proceeds earmarked to reduce group debt. The sale is aligned with book value, subj...
BlackRock Ceases to Be Substantial Holder in Lendlease Group
Jun 23, 2026
BlackRock Group has filed a notice under Australia’s Corporations Act stating it has ceased to be a substantial holder in Lendlease Group, indicating its voting interest in the company has fallen below the substantial holding threshold. The ...
Macquarie Group Steps Below Substantial Holder Threshold in Lendlease
Jun 16, 2026
Macquarie Group Limited and its controlled entities have lodged a notice stating they have ceased to be a substantial holder in Lendlease Group. The filing, made under Australian corporations law, reflects changes in Macquarie’s relevant int...
Lendlease Sells Milan MSG North Rights as Capital Recycling Accelerates
May 31, 2026
Lendlease has agreed to sell its development rights to the Milano Santa Giulia mixed-use project in Milan to an investment group led by local developer Bizzi Partners, in a transaction valued at about $250 million that includes cash proceeds, ass...
Lendlease Issues New Unquoted Rights Under Employee Incentive Scheme
Apr 14, 2026
Lendlease Group has notified the market of the issue of 27,735 unquoted rights under its employee incentive scheme, with an effective issue date of 26 February 2026. These awards, which are not intended to be quoted on the ASX, reflect the company...
Lendlease Issues New Unquoted Options Under Employee Incentive Plan
Apr 14, 2026
Lendlease Group has notified the market of the issue of 120,284 unquoted options under its employee incentive scheme, exercisable at $5.3540 and expiring on 1 September 2032. The options, which will not be quoted on the ASX, reflect the company...
Lendlease Reports Lapse of Conditional Award Rights in Capital Update
Apr 14, 2026
Lendlease Group has notified the market of the lapse of 4,008 award rights (security code LLCAA), following the non-satisfaction of conditions attached to these conditional rights. The cessation, effective 20 February 2026, reflects an adjustment ...
Lendlease Discloses Final Director Interest Notice for Philip Coffey
Apr 1, 2026
Lendlease Group has announced that director Philip Coffey will cease to be a director effective 31 March 2026, as disclosed in a final director’s interest notice to the ASX. The filing confirms he holds no Lendlease securities in his own nam...
Lendlease Director Boosts Stake With Additional Stapled Securities
Mar 30, 2026
Lendlease Group has disclosed a change in the securities holding of director Anthony Peter Lombardo, reflecting an update to his direct and indirect interests in the company. The notice records the acquisition of 15,000 additional ordinary stapled...
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.