Peet Limited (ASX: PPC) has significantly boosted its H1 FY26 net operating profit by 102% to $50.9 million, prompting an upgrade to its full-year guidance to $86-90 million.
The dual announcements highlight strong landbank activation and robust market momentum.
Peet reported a strong first half for FY26, with net operating profit reaching $50.9 million.
This represents a substantial 102% increase compared to H1 FY25, with the company's EBITDA margin also expanding to 34%.
Driving this performance, Peet has upgraded its FY26 NPAT guidance to between $86 million and $90 million, a significant increase from its November 2025 guidance of $74-78 million.
Landbank Activation Drives Sales
The company's operational strength is evident in its landbank activation, which stands at an impressive 76%.
This high level of activation supports a robust pipeline for sales and settlements across its projects.
During H1 FY26, Peet sold 1,773 lots and settled 1,496 lots.
Further reinforcing its future revenue position, contracts on hand increased to $776 million, up 27% since 30 June 2025.
Balance Sheet Strength and Shareholder Returns
Peet maintains a conservative balance sheet, with gearing at 24.7%.
The company reported cash and undrawn facilities exceeding $200 million, alongside $28.5 million in cash and $217.9 million in headroom.
Shareholders will benefit from an interim dividend of 6.5 cents per share, fully franked, declared for 26 March 2026.
Peet also completed an on-market share buy-back, which reduced the company's share count by approximately 4%.
Market Conditions Favorable
Market conditions continue to be favourable for Peet. The company noted robust demand across key regions, particularly in Western Australia, Queensland, and South Australia.
Conditions are also showing improvement in Victoria and ACT/New South Wales.
Looking ahead, Peet anticipates three new projects for FY27, which are expected to further bolster its development pipeline.
The total land development value on hand stands at $12.2 billion.
Risks and Future Outlook
While the outlook is positive, Peet acknowledges potential risks.
Any slowdowns in housing demand or delays in settlements could impact earnings, and the company also remains sensitive to interest rates and regional market softness.
Peet is actively addressing longer-term considerations, including preparing for mandatory climate reporting.
The company is also managing its leadership transition following the strategic review that commenced in August 2025.
Peet's Strong Performance and Outlook
Peet Limited has delivered exceptional H1 FY26 results, significantly exceeding profit expectations and leading to an upgraded full-year guidance.
Strong operational execution, robust landbank activation, and favourable market conditions underpin this performance, positioning the company for continued growth while managing inherent sector risks.
