Cedar Woods Properties (CWP) H1 2025 earnings summary

Executive summary

• Net profit after tax for H1 FY25 was AUD 15 million, with revenue of AUD 195.9 million from 479 settlements and EPS up 468% year-over-year to 18.2 cents.

• Record pre-sales of AUD 642 million, up 22% year-over-year, with about 40% expected to settle in FY 2025 and 654 lots sold.

• Portfolio includes 37 projects and a pipeline of over 9,700 lots/dwellings across four states, supporting future earnings.

• Strategic partnerships with QIC and Tokyo Gas Real Estate are expanding, with the first TGRE JV project completed.

• Favourable market conditions outside Victoria, with strong demand driven by low supply and population growth.

Financial highlights

• Revenue increased 59% year-over-year, driven by higher and more valuable settlements.

• Gross profit rose to AUD 51.6 million (from AUD 32.3 million), with gross margin stable at 26%.

• Operating profit reached AUD 28.5 million, up from AUD 8.0 million in the prior period.

• Interim dividend declared at AUD 0.10 per share, fully franked, up 25% year-over-year.

• Net bank debt at AUD 185 million, with gearing at 24% (net bank debt to tangible assets less cash) and 40% (net bank debt to equity).

Outlook and guidance

• Targeting minimum 10% NPAT growth for FY 2025, with further growth anticipated in FY 2026.

• More than half of required pre-sales for FY 2026 already secured.

• Balance sheet remains strong, with significant liquidity, over AUD 94 million available, and extended debt maturities (average 3.4 years).

• Accelerating acquisitions to support growth beyond FY 2026.

• Management notes profit distribution may be uneven due to project settlement timing.