Lendlease has secured $3 billion in new construction contracts in just four and a half months, exceeding half of the $5 billion secured throughout the previous year. This surge is attributed to increased spending in the defence and infrastructure sectors within Australia, according to Chief Executive Tony Lombardo. Lendlease is an international property and infrastructure group. The company’s capabilities encompass development, construction, and investment management.
The company’s construction business, which experienced losses in the first half of FY25 but rebounded to profitability in the second half, is gaining momentum. Following a major restructure imposed by shareholders last year, this division is now projected to achieve an EBITDA profit margin of 3 to 4 per cent over the medium term, Lombardo stated.
Addressing the annual general meeting on Friday, Lombardo noted that approximately two-thirds of the company’s external construction work is for government clients, focusing on areas like defence and social infrastructure. He highlighted the strong underlying fundamentals and anticipated further growth in these sectors.
Lombardo added that the company is continuously improving the earnings profile of this segment through a greater proportion of cost-plus contracts and more rigorous pricing of fixed-price contracts. This strategic shift aims to bolster profitability and ensure sustainable growth for Lendlease’s construction arm.
