This article first appeared on GuruFocus .
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Net Operating Profit:Record $103.4 million for FY26, up 77% year-over-year and slightly above the top end of guidance ($98 million-$100 million).
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EBITDA:$162 million, up from $105 million in the prior year.
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EBITDA Margin:36%, up from 24% in FY25, driven by price increases across the portfolio.
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Dividends:Final dividend of $0.065 per share, bringing total FY26 dividends to $0.13 per share, up 68% from FY25.
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Total Sales:Just under 3,000 lots, up 8% year-over-year.
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Settlements:Just under 2,700 lots, similar to the prior year.
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Contracts on Hand:$851 million at June 30, 2026, up from $612 million a year prior.
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Operating Cash Flow:$107.5 million, consistent with the previous year.
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Net Debt:$201.3 million at June 30, 2026, down from $243.6 million at June 30, 2025.
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Gearing:24.8% at June 30, 2026, down from 27.5% a year ago.
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Borrowing Costs:Reduced through actions including repaying $75 million of bonds six months early and introducing a third bank to the syndicate.
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Earnings by Business Type:Development (company-owned projects) contributed 44% of earnings; funds management contributed 56%.
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Earnings by Geography:Western Australia and Queensland collectively contributed 76% of FY26 earnings.
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Cancellation Rates:Approximately 12% for FY26, down from an average of around 16% over the last three years.
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Shareholder Returns:$293 million returned to shareholders since FY18 through dividends and share buybacks; buyback currently paused.
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Release Date: August 25, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Record net operating profit of $103.4 million, up 77% year-over-year, exceeding guidance.
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EBITDA margin improved to 36% from 24%, driven by price increases across the portfolio.
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Strong contracts on hand of $851 million, up from $612 million, providing confidence for FY27.
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Gearing reduced to 24.8%, within the preferred range, with $260 million in cash and facility headroom.
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Dividends increased 68% to $0.13 per share, fully franked, with a strong track record of shareholder returns.
Negative Points
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Inquiry levels dropped significantly in the last quarter, indicating market moderation.
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Three interest rate rises and cost-of-living pressures are impacting buyer sentiment.
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Cancellation rates, though improved, remain at 12%, with historical average of 16%.
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Dependence on Western Australia and Queensland for 76% of earnings poses concentration risk.
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Trading halt due to potential corporate transaction creates uncertainty for investors.
Q & A Highlights
Q: What portion of the presales would you expect to settle in FY27 versus FY28? A: Brett Fullarton (CEO) stated that Peet typically does not sell more than 12 months ahead of title, aiming for closer to nine months. Given the high activity levels, particularly in Queensland, this has stretched to closer to 12 months. Therefore, a very high proportion of contracts on hand at June 3095% or betteris expected to settle in FY27.
Q: With inquiry levels softening, is it fair to say you are still able to sell what is available, or is titled stock starting to ramp up? A: Brett Fullarton (CEO) confirmed that titled stock is not ramping up in Western Australia and Queensland. While demand has moderated from incredibly high levels, the company still sells everything it releases. In smaller markets, the company manages development spend carefully to avoid sitting on excess stock.
Q: Can you remind us of the leverage you have available in Victoria and the ACT, in terms of products and sales cadence? A: Brett Fullarton (CEO) highlighted Googong in Canberra as the main upside driver, which sold ~150 lots in FY26 and has the capacity to sell over 400 in a strong market. In Melbourne, the Newhaven project (50-50 JV with Supalai) offers upside, and the new Aston project (1,000 lots) has just started selling, with potential for over 200 sales per annum in a normal market.
Q: What do you think the NTA would be using current market values rather than historical cost? A: Brett Fullarton (CEO) stated that the company does not publish a current market value NTA due to confidentiality requirements with JV partners and a desire to avoid the reporting treadmill. However, he affirmed that the company believes its current market value is higher than its book NTA, which is based on cost.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
