Cedar Woods Properties Posts Record FY26 Profit as Presales Support Further Growth

Cedar Woods Properties (ASX: CWP) has reported record net profit after tax of $65.6 million for FY26, up 36% from $48.1m a year earlier and slightly above guidance.

Revenue rose 8% to a record $502.4m as higher average prices for settled lots and a stronger product mix combined with improved project margins.

Presales reached a record $830m at 30 June 2026, with more than 90% of forecast revenue for the 2027 financial year already contracted and providing substantial near-term earnings visibility.

Cedar Woods is targeting a further 15% increase in NPAT in FY27, subject to property market conditions, while maintaining a development pipeline of more than 9,600 lots, homes, and offices.

Margins and Sales Records

Gross margin increased to about 30% from 28% in FY25, reflecting price growth across the portfolio, disciplined cost control, and the mix of projects and stages settled during the year.

Earnings per share rose 33% to a record 77.9 cents, while total fully franked dividends increased 34% to a record 39.0 cents per share after the board declared a 25.0-cent final dividend.

Cedar Woods received a record 30,137 enquiries (up 25%), while increasing gross sales 5% to 1,521 lots, homes, and offices as net sales reached a record 1,326 and settlements totalled 1,068.

Affordable and mid-priced land projects were the strongest performers, although enquiry and sales softened markedly in the fourth quarter as reduced marketing, fewer releases, higher interest rates, taxation changes, and the ongoing Middle East conflict weighed on buyer sentiment.

“FY26 was the strongest year in Cedar Woods’ history, with record results across the key financial and operating measures of the business demonstrating the earnings leverage in the portfolio when higher settlement revenue is combined with stronger margins” managing director Nathan Blackburne said.

Balance Sheet to Fund Expansion

Net bank debt stood at $157.7m at 30 June 2026, representing 18% of total tangible assets less cash and 29% of equity, while annual interest cover improved to 8.1 times from 6.3 times.

The group had more than $120m in available liquidity at year end, including about $112.6m of undrawn finance facility headroom and approximately $8m in cash, against corporate finance facilities totalling $330m.

An accelerated acquisition strategy secured six sites during FY26 and added 1,184 lots and units to the development pipeline across Western Australia, Victoria and Queensland.

Since year end, Cedar Woods has contracted and settled a further Western Australian acquisition for $15.55m that will expand its Bushmead estate by 161 residential lots, while several other opportunities remain under negotiation.

Partnerships remain part of the growth strategy, with the third joint venture project with Tokyo Gas Real Estate Australia completed during FY26 and further partnered projects being explored.

Diversified Portfolio Exposure

Cedar Woods has 36 projects across four states spanning land estates, townhouses, apartments, and commercial property, giving the portfolio exposure to a broad range of locations, products, and price points.

More than $290m of presales are already in place for the 2028 and 2029 financial years, supplementing the contracted FY27 revenue base and providing visibility beyond the current year.

The company expects residential sales conditions to remain relatively soft through much of FY27 before improving as buyer sentiment recovers and interest rates peak or decline.

Gross margin is expected to remain broadly consistent with FY26, subject to the final settlement mix, while Cedar Woods continues to pursue acquisitions and capital-efficient partnering opportunities to replenish and expand its project pipeline.