Peet Forecasts $74M-$78M Net Profit, Signaling 26%-34% Growth in FY26
Peet Limited forecasts a robust FY26 with net profit after tax expected between $74 million and $78 million, signaling a 26% to 34% increase over the previous year amid strong market demand and operational momentum.
- FY26 net profit guidance of $74M to $78M
- Anticipated earnings growth of 26% to 34% over FY25
- Contracts on hand increased 23% to approximately $750 million
- Strong demand in Western Australia, Queensland, and South Australia
- Positive outlook on ACT/NSW and Victoria markets recovery
Peet’s Earnings Outlook
Peet Limited has released its earnings guidance for the financial year ending June 2026, projecting net profit after tax in the range of $74 million to $78 million. This forecast represents a significant uplift of 26% to 34% compared to the prior year, underscoring the company’s confidence in its operational execution and the broader residential property market.
Market Dynamics Supporting Growth
The company’s positive outlook is underpinned by several favourable macroeconomic factors. Elevated overseas migration and persistent housing supply constraints continue to fuel demand for residential properties. Additionally, a supportive labour market and government stimulus measures aimed at first home buyers are helping maintain momentum. While regional markets vary in their property cycles, Peet highlights particularly strong demand in Western Australia, Queensland, and South Australia.
Operational Strength and Contract Book
Peet’s operational performance has been a key driver of its optimistic guidance. The company reports a 23% increase in contracts on hand since June 2025, now standing at approximately $750 million. This substantial contract backlog provides a solid foundation and visibility for earnings in FY26. The company’s strategic focus on delivering products at appropriate price points has positioned it well to capitalize on improving conditions in the ACT, New South Wales, and Victoria markets.
Strategic Discipline and Market Responsiveness
Maintaining disciplined capital management and project delivery remains a priority for Peet. This approach ensures the company can remain agile and responsive to evolving market opportunities and challenges. The Board has indicated it will continue to monitor market conditions closely and provide updates as necessary, reflecting a cautious optimism amid ongoing economic uncertainties.
Looking Ahead
Peet’s guidance signals a strong year ahead, supported by both internal execution and external market tailwinds. However, the company’s results will depend on the continuation of current market conditions and the timing of settlements, factors that can introduce variability. Investors will be watching closely to see how Peet navigates these dynamics and whether it can sustain its growth trajectory.
Bottom Line?
Peet’s FY26 guidance sets a high bar, but market shifts and settlement timing will be key to watch.
Questions in the middle?
- How will Peet manage potential risks if settlement timings shift unexpectedly?
- Can improving conditions in ACT/NSW and Victoria translate into sustained earnings growth?
- What impact might rising interest rates or policy changes have on Peet’s demand outlook?
