Peet Limited Surges 60% in Profit, Launches Strategic Review with Goldman Sachs

Strong Financial Performance Amid Favourable Market Conditions

Peet Limited has delivered an impressive financial performance for the fiscal year ended June 30, 2025, reporting a 60% increase in net operating profit to $58.5 million. This growth was underpinned by favourable market dynamics across Australia, including robust demand in Queensland and Western Australia. Operating earnings per share rose by 61% to 12.48 cents, while fully franked dividends surged 82% to 7.75 cents per share, reflecting the company’s confidence in its cash flow and profitability.

The company’s EBITDA margin also improved to 24%, a 3% increase from the previous year, highlighting enhanced operational efficiency. Peet’s liquidity position remains strong, with cash and available facilities totaling $212 million at year-end, and net tangible assets per share increased by 5% to $1.37.

Operational Momentum and Market Positioning

Peet’s operational results were buoyed by 2,768 lots sold and 2,642 lots settled during FY25, marking increases of 11% and 9% respectively over the prior year. The company’s land bank activation rate stood at a healthy 71%, demonstrating effective project launches and sales execution. Contracts on hand were valued at $612 million, providing a solid pipeline to support future revenue streams.

Geographically, Queensland and Western Australia led the growth, while Victoria and the ACT/NSW regions appear to be stabilizing after market troughs. Peet’s diversified asset base across multiple states allows it to mitigate regional fluctuations and capitalize on population growth corridors.

Strategic Review Signals Ambition for Growth

In light of these strong results and positive market tailwinds, Peet has initiated a strategic review led by Goldman Sachs. The review aims to assess how best to leverage the company’s asset base and operational platform to maximize shareholder value amid ongoing favourable conditions. Interim CEO Brett Fullarton emphasized that the review will explore operational, structural, and financial opportunities to sustain growth and enhance returns.

This move signals Peet’s proactive approach to navigating the evolving residential property landscape, especially as borrowing conditions improve and overseas institutional interest grows. The company expects to update shareholders on the review’s progress at its 2025 Annual General Meeting.

Outlook, Positioned for Continued Growth

Looking ahead to FY26, Peet is optimistic about maintaining momentum. Despite ongoing cost of living pressures, macroeconomic factors such as population growth, constrained housing supply, and a favourable borrowing environment are expected to support demand. The company is particularly well positioned to benefit from rebounds in the ACT/NSW and Victorian markets, backed by more than $640 million in contracts on hand.

Peet’s disciplined approach to project delivery and pricing strategy should help it navigate market cycles while capturing sustainable growth opportunities. Investors will be watching closely how the strategic review shapes the company’s trajectory in the coming months.