Peet Limited delivered a record FY26 with net profit after tax soaring 77% to $103.4 million, driven by robust sales and a 39% jump in contracts on hand. The company boosted dividends by 68%, reflecting confidence in its diverse masterplanned communities pipeline.
- Net profit after tax up 77% to $103.4 million
- Revenue modestly increased 1% to $419.1 million
- Dividends raised 68% to 13 cents per share, fully franked
- Contracts on hand surged 39% to $851 million
- Gearing reduced to 24.8%, maintaining strong balance sheet
Record Profit Boosted by Market Strength and Operational Execution
Peet Limited (ASX:PPC) has reported a striking 77% increase in net profit after tax for the financial year ended 30 June 2026, reaching $103.4 million. This leap comes despite a relatively flat 1% revenue rise to $419.1 million, underscoring improved margins and operational efficiencies across the Group's portfolio. Earnings per share mirrored this growth, jumping to 22.09 cents from 12.48 cents the prior year.
The company credits this record result to favourable market conditions, particularly strong demand and price growth in Western Australia and Queensland, alongside increased fee and interest income from its Funds Management projects. Peet’s EBITDA margin expanded impressively to 36%, up 50% from the previous year, reflecting tighter cost controls and higher settlement prices.
Sales Momentum and Expanding Contracts on Hand
Sales activity remained robust with 2,996 lots sold during FY26, an 8% increase on FY25, while settlements edged up 1% to 2,665 lots. The Group’s contracts on hand ballooned by 39% to $851 million, providing substantial earnings visibility into FY27. Peet’s development pipeline remains a cornerstone of its strategy, boasting over 26,400 lots valued at an estimated $11.5 billion, spread across 37 projects nationally.
Activation of the pipeline increased to 80%, signalling a highly engaged project portfolio ready to meet ongoing demand. Key masterplanned communities such as Flagstone City in Queensland, Onderra in the ACT, and Brabham in Western Australia underpin this long-term growth outlook.
Capital Management and Dividend Growth
Peet maintained a disciplined capital management approach, reducing net debt to approximately $201 million and lowering gearing to 24.8%, comfortably within its 20–30% target range. The early repayment of $75 million in corporate notes during the year has lowered debt costs and enhanced financial flexibility. Cash and available debt facility headroom stood at around $260 million as at the end of June.
Reflecting confidence in the business, the Board declared a fully franked final dividend of 6.5 cents per share, bringing total dividends for FY26 to 13 cents per share, a 68% increase on FY25. The Dividend Reinvestment Plan remains deactivated, signalling a preference for cash returns to shareholders.
Executive Changes and Remuneration Aligned to Performance
FY26 also saw significant leadership transitions, with former CEO Brendan Gore stepping down in July 2025 and Non-executive Director Trevor Allen retiring in August 2025. New appointments, including CEO Brett Fullarton and CFO Mark Winkworth, have been accompanied by remuneration packages closely tied to performance metrics such as earnings per share growth and funds under management expansion.
Executives earned full short-term incentive payments, reflecting the Group’s strong financial and strategic achievements, while long-term incentive performance rights remain subject to ongoing vesting conditions. Non-executive Directors’ fees remained steady, underscoring prudent governance.
Risks and Outlook Amid Varied Market Conditions
Peet acknowledges ongoing risks including interest rate fluctuations, cost of living pressures, and regulatory factors such as environmental compliance and climate change mitigation. The Group’s long history of navigating cyclical property markets and managing project-level risks provides a buffer against these uncertainties.
Looking ahead, Peet enters FY27 with strong momentum, underpinned by its $851 million contracts on hand and a highly activated development pipeline. Demand remains solid in Western Australia, Queensland, and South Australia, while Victoria and NSW/ACT are expected to improve as market conditions normalise. The Group continues to monitor macroeconomic and geopolitical factors that could impact settlement timing and customer affordability.
While the book net tangible assets per share rose 9% to $1.49, it is noted that this accounting measure does not fully capture the market value of development projects and co-investment stakes, suggesting potential embedded value beyond the reported figures.
Peet’s strategic focus on large masterplanned communities, combined with a diversified land bank and a strong balance sheet, positions it to capitalize on the evolving residential property market, but the interplay of interest rates and consumer confidence will be critical to watch in the year ahead.
Bottom Line?
Peet’s record FY26 profits and increased dividends reflect robust demand and disciplined execution, yet FY27 growth hinges on navigating interest rates and settlement timing.
Questions in the middle?
- How will rising interest rates affect Peet’s sales and settlement momentum in FY27?
- Can Peet sustain margin expansion amid potential cost pressures and market moderation?
- What impact will leadership transitions have on strategic execution and long-term growth?