Peet (PPC) H2 2025 earnings summary

Executive summary

• Net profit for FY25 reached $58.5 million, exceeding upgraded guidance and reflecting strong operational performance, with operating EPS up 61% to 12.48c and dividends per share up 82% to 7.75c.

• Revenue increased 39% year-over-year to $437.3 million, driven by higher settlement revenue, on-balance sheet projects, and funds management income.

• Strong sales and settlements, particularly in Qld and WA, with 2,768 lots sold and 2,642 settled.

• The company is well positioned for FY26, with a robust contracts on hand position and high land bank activation.

• A strategic review led by Goldman Sachs is underway to optimize future growth and value creation.

Financial highlights

• EBITDA rose 58% to $105.5 million, with margin improving to 24% from 21% year-over-year.

• Operating profit reached $58.5 million, supporting a final dividend of $0.05 per share and total dividends of $0.0775 for FY25.

• Net debt reduced from $316 million to $243.6 million, with gearing down to 27.5%.

• Net operating cash flow exceeded $100 million, reversing a negative flow in FY24.

• Value of contracts on hand rose 27% to $612 million, supporting momentum into FY26.

Outlook and guidance

• Pipeline of approximately 31,000 lots underpins future earnings, with up to seven new projects launching in FY26–FY27.

• Expectations for continued earnings growth and strong operating cash flows in FY26, supported by over $640 million in contracts on hand.

• Most lots under contract as of June 2025 are expected to settle in FY26.

• Solid demand expected in WA, SA, and Qld; early signs of recovery in ACT/NSW and Vic.

• Operating cash flows in FY26 projected to remain strong, though timing of settlements may affect periodization.