Winton Land Reports 60% Revenue Drop but Boosts Commercial Income and EBITDA

Interim Financial Performance

Winton Land Limited (ASX: WTN, NZX: WIN) has released its interim results for the six months ended 31 December 2025, revealing a challenging start to FY26. The company reported revenue of NZD 32.4 million, a steep 60% decline from NZD 81.1 million in the same period last year. This drop primarily reflects a significant reduction in residential settlements, with only 14 units settled compared to 90 in H1 FY25.

Despite the revenue contraction, Winton’s earnings before interest, tax, depreciation, and amortisation (EBITDA) improved to a positive NZD 0.8 million, reversing a prior loss. The net loss after tax narrowed to NZD 0.9 million from NZD 2.0 million, signalling better cost management and operational efficiencies amid subdued market conditions.

Commercial Growth Offsets Residential Slowdown

Commercial revenue rose sharply by 67.4% to NZD 17.4 million, driven by the full six months of trading across all Ayrburn venues and increased rental income from Cracker Bay. This diversification into commercial and hospitality assets is cushioning the impact of the residential market slowdown, which remains affected by broader economic headwinds.

Winton’s portfolio includes 12 masterplanned communities with a landbank yield of approximately 5,750 units. The company’s pre-sale book remains robust at NZD 239.8 million, providing a solid pipeline of future revenue. Cash reserves stood at NZD 14.5 million at the end of December 2025, while borrowings of NZD 120.1 million are secured against specific properties with no group-level recourse, reflecting a conservative capital structure.

Progress on Key Development Projects

Operationally, Winton has made notable progress. The first stage of Northbrook Wānaka was completed in May 2025, with residents moving in and steady sales meeting expectations. The company officially opened the Northbrook Wellness Spa in February 2026, enhancing the lifestyle offering for residents. Construction of Stage Two, including The Welcome Building and Premium Care Suites with 35 care suites for various levels of aged care, commenced in January 2026.

On the approvals front, Winton is awaiting final decisions on two significant projects under the Fast-track Approvals Act 2024: the Sunfield masterplanned community in Auckland and the Ayrburn Screen Hub adjacent to the Ayrburn Hospitality Precinct. The draft decision for Sunfield was issued in early February, with final approval expected soon. The Screen Hub decision is anticipated by April 2026. These projects are poised to add substantial recurring revenue streams and enhance the company’s commercial precincts.

Cautious Outlook Amid Economic Challenges

Chair and CEO Chris Meehan acknowledged the subdued economic environment impacting residential development timelines. Key macroeconomic challenges include rising unemployment, low net migration, and below-average volumes of ready-mixed concrete, all dampening housing demand. However, Meehan highlighted some positive signs such as improved borrowing conditions for consumers, increased supplier competition, lower labour costs, and policy changes attracting high net-worth overseas buyers.

Reflecting these conditions, Winton’s Board has elected to pause dividend payments to maintain financial discipline and conserve resources. The company plans to adopt a disciplined and selective approach to capital deployment, focusing on recurrent income segments and developments less affected by market softness, such as Sunfield and South Island projects.

Winton enters the second half of FY26 cautiously optimistic, awaiting clearer signs of sustained market recovery, particularly a peak in unemployment, before accelerating capital commitments.