LendLease Group (LLESY)
OTHER OTC:LLESY
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LendLease Group
(OTC:LLESY)
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Rating:50Neutral
Price Target:
$2.50
▼(-26.04% Downside)
Action:ReiteratedDate:02/24/26
The score is held back primarily by weak financial performance (declining revenue, thin/negative operating profitability, and negative operating/free cash flow) and bearish technicals (below major moving averages with negative MACD). Offsetting factors include a more reasonable valuation with a solid dividend yield and an earnings call that maintained guidance and outlined liquidity/cost actions, though successful deleveraging remains dependent on transaction execution.
Positive Factors
Investment platform scale
A large, stable FUM base with high management EBITDA supports durable, fee‑based recurring income less tied to development cycles. High-margin management fees and co-invest capital provide earnings resilience, predictable cashflows and scalable growth as FUM expands.
Negative Factors
Weak cash generation
Persistent negative operating and free cash flows limit internal funding for development and debt reduction, increasing reliance on asset disposals and external financing. Over time this constrains reinvestment, raises refinancing risk and pressures capital allocation flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Investment platform scale
A large, stable FUM base with high management EBITDA supports durable, fee‑based recurring income less tied to development cycles. High-margin management fees and co-invest capital provide earnings resilience, predictable cashflows and scalable growth as FUM expands.
Read all positive factors
LendLease Group (LLESY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.59B
Dividend Yield4.16%
Average Volume (3M)0.00
Price to Earnings (P/E)―
Beta (1Y)0.74
Revenue Growth-17.89%
EPS GrowthN/A
CountryUS
Employees12,000
SectorReal Estate
Sector Strength53
IndustryReal Estate - Diversified
Share Statistics
EPS (TTM)-0.33
Shares Outstanding690,891,200
10 Day Avg. Volume0
30 Day Avg. Volume0
Financial Highlights & Ratios
PEG Ratio-0.14
Price to Book (P/B)0.73
Price to Sales (P/S)0.49
P/FCF Ratio-4.74
Enterprise Value/Market Cap3.76
Enterprise Value/Revenue1.02
Enterprise Value/Gross Profit21.69
Enterprise Value/Ebitda-30.69
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.15
Revenue Forecast (FY)$4.71B
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 primarily makes money through a mix of development profits, construction-related earnings, and recurring fees from investment and asset management. (1) Development: The company undertakes real estate development projects (e.g., residenti...
LendLease Group Earnings Call Summary
Earnings Call Date:Feb 22, 2026
(Q2-2026)
| Next Earnings Date:Aug 17, 2026
Earnings Call Sentiment Neutral
The call balanced clear operational positives—notably strong Construction revenue growth (+22%), backlog expansion (+36%), stable Funds Under Management ($48.7bn), tangible liquidity ($3.3bn) and active development origination—with meaningful near-term financial headwinds driven by CRU impairments/write-downs, an IDC EBITDA decline (~40%), elevated gearing (32.9% excluding hybrids) and dependence on ~$3bn of asset transactions to hit the 15% gearing target. Management has concrete plans (cost savings, targeted capital recycling, internal CFO succession) and reiterated IDC guidance, but successful execution and timing of transactions are critical to restore profitability and leverage metrics.Positive Updates
Progress on Capital Recycling (CRU) Transactions
Announced/completed exit of $2.8 billion of CRU assets and $500 million of new asset sales in the half; targeting a further $1.5 billion (and $3 billion total announced/active transactions) to complete in H2 FY'26 to support gearing reduction and potential buyback initiation.
Negative Updates
Statutory and Operating Losses
Statutory loss for the half of $318 million and a group operating (OPAT) loss after tax of $200 million, reflecting impairments, write-downs and limited transactional earnings in the period.
Read all updates
Q2-2026 Updates
Positive
Negative
Progress on Capital Recycling (CRU) Transactions
Announced/completed exit of $2.8 billion of CRU assets and $500 million of new asset sales in the half; targeting a further $1.5 billion (and $3 billion total announced/active transactions) to complete in H2 FY'26 to support gearing reduction and potential buyback initiation.
Read all positive updates
Company Guidance
Management maintained IDC FY‑26 earnings guidance of $0.28–$0.34 per security (H1 delivered $0.126, so H2 must deliver $0.154–$0.214), gave no FY‑26 EPS guidance for CRU while it focuses on capital recycling, and reiterated targets to complete $3.0bn of announced/active transactions in H2 (including ~ $640m of contracted Crown Estate/TRX transactions, >$1.0bn in exclusivity for Keyton/UK BTR/APPF recap, plus Victoria Cross and others), with CRU targeting $2.0bn of recycling in FY‑26 (H1 achieved $500m; $1.5bn targeted for H2). They target underlying gearing of 15% by end FY‑26 (reported gearing 25.8% including hybrids; excluding hybrids 32.9%), expect reported net debt (ex‑hybrid) of $3.3bn to reduce as the $3.0bn of transactions settle, and retain available liquidity of $3.3bn (comprising $2.7bn undrawn facilities and $600m cash) with average debt maturity 2.5 years. Guidance factors in expected net production spend (~$400m IDC and ~$200m CRU), a $50m cost‑saving program with an exit overhead run‑rate target of ~ $350m by end FY‑26 (H1 net overheads $197m; $21m pretax run‑rate savings actioned in H1), and a medium‑term outlook of IDC recovery into FY‑27 (Development completions: H1 $1.3bn; FY‑27 target ~ $4.5bn; FY‑28 target $3.9bn), Construction revenues >$4.5bn in FY‑27 and >$5.0bn in FY‑28 with sustainable EBITDA margins of 3–4%, and Investments driving margin and FUM expansion (management EBITDA >40% in FY‑27 moving toward ~50% by FY‑30, FUM growth 8–10% p.a., FUM $48.7bn, $2.8bn available capital and $4.7bn of capital being raised).LendLease Group Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
55
Neutral
Cash Flow
40
Negative
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.87B | 7.60B | 9.22B | 10.40B | 8.97B | 9.77B |
| Gross Profit | 275.36M | 404.00M | 776.00M | 587.00M | 682.00M | 639.00M |
| EBITDA | -194.65M | 739.00M | -974.00M | 63.00M | 87.00M | 623.00M |
| Net Income | -135.17M | 225.00M | -1.50B | -232.00M | -99.00M | 222.00M |
Balance Sheet | ||||||
| Total Assets | 14.09B | 14.13B | 16.77B | 18.99B | 17.81B | 17.69B |
| Cash, Cash Equivalents and Short-Term Investments | 645.36M | 621.00M | 1.00B | 900.00M | 1.30B | 1.66B |
| Total Debt | 4.37B | 4.05B | 4.51B | 3.67B | 2.77B | 2.83B |
| Total Liabilities | 8.53B | 8.99B | 11.89B | 12.35B | 10.84B | 10.74B |
| Stockholders Equity | 5.53B | 5.11B | 4.84B | 6.62B | 6.94B | 6.93B |
Cash Flow | ||||||
| Free Cash Flow | -830.55M | -783.00M | -118.00M | -568.00M | -920.00M | 347.00M |
| Operating Cash Flow | -823.61M | -775.00M | -55.00M | -486.00M | -835.00M | 468.00M |
| Investing Cash Flow | 538.80M | 928.00M | -552.00M | -758.00M | 554.00M | -214.00M |
| Financing Cash Flow | 176.09M | -532.00M | 723.00M | 723.00M | -108.00M | -148.00M |
LendLease Group Technical Analysis
Negative
3.38
Price Trends
2.79
Negative
3.10
Negative
3.30
Negative
Market Momentum
-0.15
Negative
40.43
Neutral
38.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LLESY, the sentiment is Negative. The current price of 3.38 is above the 20-day moving average (MA) of 2.34, above the 50-day MA of 2.79, and above the 200-day MA of 3.30, indicating a bearish trend. The MACD of -0.15 indicates Negative momentum. The RSI at 40.43 is Neutral, neither overbought nor oversold. The STOCH value of 38.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LLESY.
LendLease Group Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | $3.78B | 195.53 | 3.55% | ― | 59.27% | 240.63% | |
64 Neutral | $516.78M | 5.12 | 10.11% | 11.98% | -21.98% | -25.08% | |
63 Neutral | $2.19B | -2.54 | -8.42% | 13.10% | -3.57% | -104.55% | |
57 Neutral | $954.02M | -63.56 | -10.00% | 2.09% | 5.08% | 41.21% | |
50 Neutral | $1.59B | -2.85 | -2.65% | 4.16% | -17.89% | ― | |
45 Neutral | $68.02M | -2.79 | -7.12% | 7.97% | -28.13% | 62.49% |
* Real Estate Sector Average
LLESY
LendLease Group
2.33
-0.67
-22.47%
HHH
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63.41
-4.06
-6.02%
RMR
The RMR Group
16.12
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16.80%
PK
Park Hotels & Resorts
10.87
1.70
18.51%
GPMT
Granite Point Mortgage
1.43
-0.49
-25.60%
EXPI
eXp World Holdings
5.99
-3.42
-36.32%
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.