The group is focused on domestic projects like West Tower at Sydney’s Hunter Street station (Image: Lendlease)
Lendlease reported a loss of A$318 million ($225 million) for the six months to the end of December, as the Australian builder continues to execute on a multi-year overhaul aimed at scaling back overseas development and focusing on domestic operations.
The result for the first half of fiscal 2026 reverses a year-earlier profit of A$48 million. The red ink includes non-cash investment property revaluations and impairments totalling A$118 million, primarily in the US, Britain and Singapore, according to Lendlease’s Monday announcement.
The construction segment posted a A$69 million operating profit, reversing a year-earlier loss of A$25 million, on higher revenue and better project performance. Lendlease secured A$4.7 billion in new projects for its Australian development pipeline and A$4 billion in new construction work, the ASX-listed giant said.
“The group continues to make considerable progress on its strategy with momentum building across its core operations,” said CEO Tony Lombardo, who is set to step down and leave the company in August. “Our development and construction pipelines remain strong, and we are seeing continued growth in investor partnering and mandate activity.”
Recycling Bin
Lendlease has announced or completed A$2.8 billion in capital recycling transactions since announcing its strategy reset in May 2024.
CEO Tony Lombardo is leaving Lendlease in August (Image: Lendlease)
The largest completed transaction was the sale of 12 Australian Communities projects, valued at over A$1 billion, alongside the divestment of US military housing assets for A$516 million, both completed in the first half of fiscal 2025.
Additional fiscal 2025 disposals included Asia Pacific life sciences assets worth A$170 million, with those properties seeding a 50:50 joint venture with US private equity giant Warburg Pincus, as well as international land and inventory sales totalling A$240 million.
In fiscal 2026, Lendlease has completed a further A$90 million of international land and inventory sales, and it has announced the divestment of TRX retail and office assets in Malaysia valued at A$400 million, with the deal yet to close.
The recycling programme also includes a A$300 million-plus joint venture with King Charles III’s Crown Estate, announced in the second half of fiscal 2025, with future outcomes to depend on market conditions and transaction timing.
New Leadership
Lendlease announced earlier this month that Lombardo was resigning after 18 years at the Sydney-based group, including the last five as CEO, with the veteran executive confirming plans to relocate to Southeast Asia for a new career opportunity.
Lombardo’s departure will bring him back to the region after the company veteran had spent five years as chief executive of the developer’s Asia business, based in Singapore, before becoming group CEO in 2021.
Lendlease says it plans to consider both internal and external candidates in its search for a successor, with the board signalling a preference for leadership capable of restoring investor confidence while executing the strategy already in motion.
The transition comes as Lendlease hopes to establish the start of its next fiscal year on 1 July as an inflection point beyond which it can enter a renewed era of growth, with the company having struggled since a shareholder revolt over its declining financial performance in 2024.
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