Peet (PPC) H1 2025 earnings summary

Executive summary

• Net profit after tax for 1H25 rose 63% year-over-year to $25.2 million, with EPS up 64% to 5.38 cents and strong underlying performance across Australia, especially in Queensland, WA, and SA.

• Revenue increased up to 18% to $182.5 million, driven by increased settlement revenue, funds management fee income, and robust project pipeline.

• Lot sales increased 24% to 1,370, with strong activity in Qld and WA; settlements declined 9% to 1,009, mainly due to Vic market conditions.

• Strategic focus on disciplined acquisitions, capital management, and leveraging capital partners for growth and value unlocking.

• Interim dividend of 2.75 cents per share, up 83% year-over-year, with on-market share buy-back reducing shares on issue by over 4%.

Financial highlights

• EBITDA rose 62% to $46.9 million, with margin improving to 26% from 18% in 1H24.

• Operating EPS increased 64% to 5.38c; book NTA per share rose to $1.34.

• Value of contracts on hand reached $661 million, up 37% from June 2024 and 6% since December 2024.

• Cash and available facilities at approximately $130 million; net interest-bearing debt increased to $328.1 million.

• Gearing at 35.3%, above target range due to acquisitions and development spend.

Outlook and guidance

• FY25 NPAT targeted at $50–$55 million, supported by $660+ million in contracts on hand and strong expected 2H25 cash flows.

• Up to three new land community projects and five townhouse/apartment sites to commence within three years, fully funded from internal cash and existing debt.

• Settlements expected to improve in 2H25; gearing anticipated to trend down toward 20–30% target range.

• Market fundamentals remain supportive, with high enquiry levels, positive migration, and strong labour market.

• Residential market cycles vary by region; interest rates likely peaked after RBA cut in February 2025.