This article first appeared on GuruFocus .
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Revenue:$188.8 million, up 21.5% from $155.4 million in FY25.
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Gross Profit:$85.7 million at a margin of 45.4%, up from 38.3%.
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EBITDA:$45.6 million, up from $21.3 million in FY25.
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Net Profit After Tax:$22.7 million, more than doubled from $10.3 million in FY25.
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Earnings Per Share:Basic EPS more than doubled to $0.64 per share.
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Residential Revenue:$147.8 million, driven by 430 units settled, up from 266 in FY25.
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Hospitality Revenue:$35.8 million, up 69.4%.
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Development Gross Margin:Improved to 37.1% from 31.2%.
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Cash:$38.8 million at year-end.
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Borrowings:Reduced to $44.2 million from $99.4 million in the prior year.
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Net Operating Cash Flows:Increased by $63.6 million to $105.9 million.
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Average Revenue Per Unit:$344,000, down from $480,000, reflecting a higher proportion of land lots in the mix.
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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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Settlements surged 61.7% to 430 units, driving revenue up 21.5% to $188.8 million and net profit after tax more than doubling to $22.7 million.
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Group gross margin improved significantly to 45.4% from 38.3%, with development gross margin up to 37.1% from 31.2%.
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Cash position strengthened to $38.8 million, and borrowings were reduced by over half to $44.2 million, with no recourse debt at the group level.
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Hospitality revenue grew 69.4% to $35.8 million, supported by the first full year of Airburn venues and the opening of Bravo at Karaka Bay.
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Strategic approvals advanced: Sunfield and Airburn Screen Hub received Fast Track Approvals Act approvals, with Sunfield's appeal hearing set for September and no appeal for the Screen Hub.
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Retirement portfolio expanded with Northbrook Wanaka's first full year of operations, the opening of the Wellness Spa, and the launch of Goodfellows at Lakeside, adding recurring income streams.
Negative Points
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Market conditions remain subdued, particularly in Auckland, with the economy setback by the Middle East war and unemployment rising to 5.6% with no clear peak yet.
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Sunfield's approval faces a High Court appeal from Auckland Council, creating uncertainty and potential delays in progressing this major project.
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Average revenue per unit fell to $344,000 from $480,000, reflecting a higher proportion of lower-value land lots in the sales mix.
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Dividends remain paused, with the Board continuing to prioritize financial discipline in the current softer market conditions.
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CEO Chris Meehan resigned, and Chairman Steven Joyce and director Guy Ferguson announced their resignations, adding leadership instability during a challenging period.
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Economic uncertainty remains high, with no clear evidence of a sustained property market turnaround until unemployment peaks, limiting near-term growth prospects.
Q & A Highlights
Q: On the FY26 development margin of 37%, would it be possible to get a sense of what the average margin for the Lakeside and Northlake settlements were given the Lakeside units were settled under a government contract while Northlake was settled by market sales? A: Jean McMahon, CFO: We don't release that level of detail by community or by project.
Q: Has any preparatory work, say civil engineering or funding arrangements, continued in the background pending the Sunfield appeal, or is everything paused? A: Unidentified Participant: We've definitely carried on with preparatory work. We're currently doing some ground investigation work down there with a contractor on site. Those works and the planning have definitely continued during the period.
Q: Assuming a favorable outcome for Sunfield, what's the realistic timeline to commence development immediately afterwards? Would that be over the summer to put shovels in the ground? A: Unidentified Participant: We're just going to wait for the outcome of the appeal period. We need a decision on that before we make any determinations on timing.
Q: I know that hospitality revenue grew around 70% in its full first year of trading. What would you say is the realistic normalized growth rate from here? Is there any more step up in revenue you expect from more capacity or venue expansion being planned, or is everything stabilized? A: Julian Cook, Executive Director: We don't want to give any specific numbers on where we think it could get to, but typically with these hospitality type offerings, you do see a little bit of trade up over time. We would be anticipating some increase in revenue and EBITDA over the next couple of years until we get to a sort of stabilized position, but we don't want to put a particular number out there.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
