LendLease experienced a significant investor sell-off on Monday after reporting an operating loss of $200 million for the December half. The company, a multinational construction, property, and infrastructure company, also faced a $284 million capital release unit (CRU) segment write-down affecting land parcels, international and construction provisions, and unrealised transaction profits.
Citi analyst Suraj Nebhani highlighted the unexpected nature of the loss, noting an anticipated profit of $37.2 million, resulting in a substantial $237.2 million discrepancy. The analyst explained that core integrated development and construction (IDC) earnings remained strong at $87 million, equating to 12.6 cents earnings per share.
Despite the overall loss, Nebhani noted that the core IDC earnings exceeded expectations and supported the company’s fiscal year 2026 guidance of 28 to 34 cents. However, the negative impact of the reported loss and write-down overshadowed the positive aspects of the IDC performance.
Ultimately, the market reacted strongly to the news. LendLease shares were down 6.8 per cent, reflecting investor concern over the reported operating loss and the considerable write-down within the CRU segment.
