Residential development company Peet Ltd (ASX: PPC) has upgraded its earnings guidance for the second time this calendar year, saying it now expects full-year net profit to come in at $98 to $100 million.
This figure is up from $86 to $90 million the company forecast at the release of its half-year results, which was itself an upgrade.
The new figure amounts to an increase over FY25’s net profit of 67% to 71%.
Strong pipeline paying off
The company said re the upgrade:
This revised guidance is primarily driven by continued strong market conditions across Western Australia and Queensland and Peet’s capacity to deliver into the prevailing favourable market conditions. Peet has responded to the sustained, elevated demand with the acceleration of its construction program, thereby bringing product to market sooner than previously expected. This strong demand in key markets has underpinned price growth and consistent sales volumes throughout FY26.
Peet said it was continuing to target growth in FY27, “supported by its established pipeline, visibility of contracts on hand, and demand across key markets, with outcomes subject to prevailing market conditions and settlement timing”.
The company added:
Whilst population growth and constrained housing supply remain favourable for the sector, the Group continues to monitor the impact of interest rate rises and cost of living pressures on customers, as well as broader geopolitical and macroeconomic factors.
Dividend yield solid
Peet in February declared an interim dividend of 6.5 cents per share, which was an increase on the previous year’s interim dividend of 2.75 cents.
Based on the company’s current share price, it is paying a trailing dividend of 7.21%.
The company previously had a buyback running, which was closed during the first half having bought back about 4% of the company’s shares on issue.
At the time of releasing its first-half results, the company said it had cash and undrawn facilities worth more than $200 million with which to fund its growth plans.
Peet made a net operating profit of $50.9 million for the half, up 102%, with operating earnings per share of 10.88 cents also up 102%.
The company’s gearing level was 24.7%, within its target range of 20% to 30%.
The company added:
The Group’s EBITDA margin strengthened to 34%, an improvement of eight percentage points on the prior corresponding period, while net tangible assets increased to $1.44 per share, up 5% since 30 June 2025.
Peet shares were 4.2% higher on Thursday morning at $1.66. The company is valued at $746.7 million.
The post This big dividend payer has just increased its profit guidance for the second time appeared first on The Motley Fool Australia.
Should you invest $1,000 in Peet right now?
Before you buy Peet shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Peet wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
* Returns as of 20 Feb 2026
.custom-cta-button p {
margin-bottom: 0 !important;
}
More reading
- Up 116% in a year, why is this ASX All Ords gold stock leaping higher in Thursday’s sinking market?
- 2 ASX tech shares I think could be worth much more by 2030
- Buying Yancoal shares? Here’s why the ASX 200 coal stock is outperforming today
- Investors are watching this ASX stock after a big CEO announcement
- Why is this ASX lithium share charging 15% higher today?
Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.