Lendlease forecasts $749 million loss for FY26 despite construction recovery
Slides from the developer’s FY26 outlook highlight a rebound in construction activity but warn of a significant net loss, driven by asset impairments and restructuring costs.
Lendlease expects a net loss of $749 million for the fiscal year ending June 2026, according to internal presentation slides reviewed by Reuters. The forecast reflects a partial recovery in construction activity but is overshadowed by asset impairments and restructuring expenses.
The Australian-based property and infrastructure group cited improved demand in its development pipeline as a key driver of the anticipated rebound. However, the company warned that these gains would be offset by one-off charges, including impairments on underperforming assets and costs tied to its ongoing restructuring efforts.
Lendlease’s management outlined a strategy to streamline operations and reduce debt, which it expects will position the company for a stronger recovery in subsequent years. The slides did not provide a breakdown of the impairments or restructuring costs, nor did they specify the timing of these charges.
The company’s shares were down 2.1% in early trading on Tuesday, reflecting investor caution amid the outlook. Analysts noted that while the construction sector shows signs of stabilization, Lendlease’s financial trajectory remains uncertain due to the scale of the projected loss and the lack of granularity in the disclosed figures.
A spokesperson for Lendlease declined to comment beyond the information contained in the slides.
Priya covers listed equities and corporate earnings, reading quarterly results and guidance for what they signal about sector health and forward valuations.
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