Peet Limited Posts 60% Profit Surge, Launches Strategic Review with Goldman Sachs

• Net operating profit up 60% to $58.5 million
• Record lot sales and settlements driven by Queensland and Western Australia
• EBITDA margin improved to 24%, gearing reduced to 27.5%
• Pipeline of approximately 31,000 lots with $612 million contracts on hand
• Strategic review led by Goldman Sachs to optimize growth and shareholder value

Strong Financial Results Amid Favorable Market Conditions

Peet Limited, a leading Australian residential property developer, has reported a significant uplift in its FY25 financial results, underscoring its strong market positioning. The company’s net operating profit soared 60% to $58.5 million, while operating earnings per share rose 61% to 12.48 cents. These gains were supported by record lot sales and settlements, particularly in Queensland and Western Australia, where demand remains robust.

Revenue climbed 39% to $437.3 million, with an EBITDA margin improvement to 24%, reflecting both price increases and operational efficiencies. The company’s gearing ratio improved to 27.5%, down from 34.8% the previous year, signaling a healthier balance sheet and enhanced financial flexibility.

Robust Pipeline and Market Outlook

Peet’s development pipeline remains substantial, with approximately 31,000 lots valued at a gross development value of $13.2 billion. Contracts on hand reached $612 million as of June 30, 2025, providing strong momentum heading into FY26. The company plans to launch up to five new land community projects and two townhouse/apartment sites over the next two years, funded through internally generated cash flows and existing debt facilities.

Market fundamentals underpinning Peet’s outlook include constrained housing supply, positive population growth driven by net overseas migration, and easing interest rates improving consumer borrowing capacity. The company is well-positioned to capitalize on these trends, particularly across its key growth corridors on Australia’s east coast.

Strategic Review to Unlock Long-Term Value

In a proactive move to ensure optimal positioning, Peet has appointed Goldman Sachs to lead a strategic review of its business. This independent review aims to assess operational, structural, and financial aspects to unlock value and prepare the company for sustained growth amid favorable market dynamics. The initiative reflects Peet’s commitment to sound governance and shareholder alignment, with a focus on maximizing returns and leveraging its extensive asset base.

Alongside growth initiatives, Peet continues to emphasize capital management, demonstrated by its ongoing on-market share buy-back program which has reduced shares on issue by approximately 4%, and a fully franked dividend increase of 82% to 7.75 cents per share.

Sustainability and Community Focus

Peet also highlighted its commitment to environmental, social, and governance (ESG) principles. The company supports community wellbeing through grants, mental health programs, and sustainable development practices such as water conservation and solar energy integration. Notably, its Tonsley Village project features a district energy scheme powered by 17,000 solar panels, supplying around 40% of the district’s annual energy needs.

These initiatives reinforce Peet’s reputation as a trusted partner in creating resilient, inclusive communities while delivering shareholder value.

Bottom Line?

Peet’s strong FY25 results and strategic review set the stage for continued growth, but investors will watch closely for how the review’s recommendations reshape the company’s future.

Questions in the middle?

• What specific strategic options will Goldman Sachs recommend to unlock value?
• How will Peet balance growth ambitions with ongoing capital management and shareholder returns?
• What impact might evolving government housing policies have on Peet’s project pipeline and sales?