Ingenia Communities Affirms FY26 Guidance with Strong Second Half Momentum

Solid First Half Sets Stage for Growth

Ingenia Communities Group (ASX: INA) has delivered a steady first half for FY26, reporting revenue of $257.3 million and EBIT of $85.0 million, largely in line with expectations despite a slight 1% dip compared to the prior corresponding period. Underlying earnings per share (EPS) fell 10% to 15.2 cents, influenced by a traditional second half settlements skew, absence of deferred management fee income, increased interest expenses, and a normalization of the tax rate.

Statutory profit, however, rose 11% to $97.4 million, reflecting strong operational performance across the group’s diverse revenue streams. The company’s CEO, John Carfi, emphasised that the first half results demonstrate targeted execution and position the group well to meet full year guidance at the top of the range.

Development Pipeline and Settlements Accelerate

Development settlements are set to accelerate in the second half, with 248 new homes settled in the first half, close to the previous year’s 258. Ingenia’s development pipeline remains robust, boasting 4,946 sites with additional sites under due diligence, including a recent acquisition in Townsville, Queensland. The group currently holds 440 deposits and contracts, up over 20% year-on-year, supporting a strong skew towards second half settlements and growth into FY27.

The average sales price across projects remained stable at $646,000, with gross margins maintained despite cost pressures. Joint Venture settlements increased to 29% of total settlements, contributing to targeted returns with an average gross margin of 53% and net cash generation exceeding $100,000 per lot.

Rental and Holiday Segments Drive Earnings Growth

Ingenia’s Lifestyle Rental portfolio saw EBIT increase by 6% to $25.7 million, benefiting from annual rental increases averaging 3.5% and growth in the rent base as new homes with higher rents come online. The ‘build to rent’ segment experienced particularly strong demand, with weighted average rent increases of 7.9%.

The Holidays division delivered a 10% EBIT uplift to $31.5 million, driven by higher occupancy and rates, investment in new cabin stock, and recent acquisitions such as Kinka Beach and Tomakin. While margins were impacted by increased costs and marketing investments, the outlook for the domestic caravan and camping sector remains positive, supported by strong forward bookings and tourism revenue growth.

Capital Management and Outlook

Ingenia’s balance sheet remains solid, with gearing at 31.1%, comfortably within target ranges. The group increased total debt facilities by $100 million, extending average debt maturity to 3.3 years. Capital expenditure in the first half included $57 million in development projects and $26 million in acquisitions.

Looking ahead, Ingenia is on track to deliver FY26 EBIT between $180.5 million and $188.7 million and underlying EPS of 32.5 to 34.0 cents, affirming guidance at the top of the range. The company’s 5-year plan targets a compound annual growth rate of 10-15% in settlements, supported by ongoing demand drivers such as an ageing population, housing supply shortages, and affordability pressures.

John Carfi highlighted the group’s focus on financial discipline, operational efficiencies, and strategic project execution as key to sustaining growth and enhancing returns. With 13 active projects and eight new projects commencing this financial year, Ingenia is well positioned to capitalise on market opportunities and deliver scale in the affordable living and tourism accommodation sectors.