Ingenia Reports 22% EBIT Growth and 520 New Home Settlements in FY25
Ingenia Communities Group has reported a robust FY25 performance, exceeding underlying EPS guidance with a 33% increase and signalling strong momentum heading into FY26.
- Underlying EPS of 30.9 cents, 33% above FY24 and exceeding guidance
- Revenue up 8% to $512 million; EBIT up 22% to $164.1 million
- 520 new home settlements, a 13% increase year-on-year
- Statutory profit surged 816% to $128.4 million following prior year goodwill write-down
- FY26 guidance targets 10-15% EBIT growth and EPS between 32.5 and 34.0 cents
Strong Financial Performance and Growth
Ingenia Communities Group (ASX – INA) has delivered a standout FY25 result, with underlying earnings per share (EPS) rising 33% to 30.9 cents, comfortably exceeding its own guidance. The company’s revenue climbed 8% to $512 million, while earnings before interest and tax (EBIT) increased 22% to $164.1 million, positioning the business at the upper end of its forecast range.
Statutory profit saw an extraordinary jump of 816% to $128.4 million, a rebound from the previous year’s impairment charges. This surge reflects the benefits of business simplification, operational efficiency, and a strategic focus on development and recurring income streams.
Accelerated Development and Settlements
Development activity is a key driver behind Ingenia’s growth, with 520 new home settlements completed in FY25, a 13% increase on the prior year. The average home sale price rose 11% to $671,000, supported by strong gross margins averaging 47%. The company’s pipeline remains robust, with over 5,000 development sites and five new greenfield projects slated to commence in FY26, including expansions in New South Wales.
Ingenia’s land lease and rental communities continue to meet rising demand for affordable housing, particularly among the ageing population. The Lifestyle Rental segment delivered EBIT growth of 2%, while the Lifestyle Development EBIT surged 25% to $73.9 million, underscoring the profitability of this segment.
Holiday Parks and Recurring Revenue Streams
The Holidays division contributed solidly with EBIT up 2% to $57.8 million, buoyed by a 6% increase in tourism rental income. The addition of 50 new cabins and recent acquisitions like Ingenia Holidays Tomakin and Kinka Beach support the company’s densification strategy and future growth prospects. Forward bookings are strong, reflecting sustained demand for affordable domestic travel amid cost-of-living pressures.
Capital Management and Outlook
Ingenia maintains a conservative balance sheet with gearing below 30% and $198 million in available liquidity. The company secured an additional $125 million in debt facilities, introducing a new lender and demonstrating market confidence. Despite anticipated cost pressures and regulatory impacts on rent growth, Ingenia has provided FY26 guidance targeting EPS between 32.5 and 34.0 cents and EBIT growth of 10-15%, signaling continued momentum.
CEO John Carfi highlighted the company’s focus on efficient development, operational productivity, and financial discipline as key to sustaining growth. The planned acceleration of construction activity and new project launches in FY26 are expected to drive medium-term returns, albeit with increased upfront capital and marketing costs.
Bottom Line?
Ingenia’s FY25 outperformance sets a confident tone for FY26, but rising costs and regulatory shifts warrant close investor attention.
Questions in the middle?
- How will regulatory changes impact rent growth and deferred management fees in FY26 and beyond?
- What are the risks associated with accelerating development projects amid rising capital and marketing expenses?
- How might shifts in interest rates and inflation affect Ingenia’s balance sheet and funding strategy?
