Winton Land (WTN) H1 2025 earnings summary

Executive summary

• Revenue for H1 FY25 was $81.1 million, down 5.3% year-over-year, with an EBITDA loss of $0.1 million and a net loss after tax of $2.0 million, reflecting challenging market conditions and lower residential settlements.

• 90 units were settled in H1 FY25, a decrease of 68 units compared to H1 FY24, with a pre-sale book of $342.0 million at period end.

• The business maintained discipline, paused dividends, focused on revenue diversification, and deferred major new projects to mitigate risk during the ongoing recession.

• Maintains a landbank pipeline of approximately 6,000 units for future delivery.

• Cash holdings at period end were $26.1 million.

Financial highlights

• Residential development revenue was $70.6 million, with an EBITDA of $6.6 million for H1 FY25.

• Commercial revenue rose to $10.4 million, with an EBITDA loss of $3.0 million and a net loss after tax of $4.7 million, driven by Ayrburn's full six months of trading.

• Cost of sales increased to $57.6 million, mainly due to a higher proportion of built product settlements.

• Fair value loss of $2.8 million on investment properties, compared to a gain of $2.6 million in H1 FY24.

• Administrative expenses increased by $3.6 million, primarily from higher employee benefits as Ayrburn traded for a full six months.

Outlook and guidance

• The company remains cautious, expecting the property market to recover only after unemployment peaks, and New Zealand is not yet at the bottom of the construction cycle.

• Focus remains on positioning for an upturn in the property cycle, with continued discipline in project selection and deferral of major projects.

• Anticipates further moderation in construction and interest costs, which could benefit future projects.