Peet FY26 slides: record profit, 36% margin on strong WA demand

Peet Limited, an Australian land developer celebrating its 130th year of operation, reported record profits and increased margins in its FY26 results presented on August 25, 2026. The net operating profit soared to $103.4 million, a 77% increase from the previous year, exceeding analysts' expectations of $98-100 million. The shares traded around $1.81, near the middle of their 52-week range of $1.49 to $2.24.

The company's EBITDA surged 54% to $162.8 million, while the EBITDA margin expanded 50% to 36%, driven by favorable settlement price increases in Queensland and South Australia, as well as higher income from funds management projects. Operating earnings per share grew 77% to 22.1 cents, matching the profit growth rate. Net tangible asset value per share rose 9% to $1.49.

Strong market conditions in Western Australia contributed to an 8% increase in lot sales to 2,996 units. Group revenue increased 3% to $450.2 million, primarily due to higher fee income, interest income, and share of net profit from funds management projects. The company generated net operating cash flow of approximately $100 million while reducing debt.

The company's financial position improved, with net debt falling to $201.3 million from $243.6 million, and gearing improving to 24.8% from 27.5%. The interest cover ratio more than doubled to 7.6 times, reflecting increased profitability and lower interest expense. The company's dividend growth and share price appreciation provided substantial returns for shareholders, with the FY26 dividend increasing 68% from the prior year's 7.75 cents to 13.0 cents per share.