Are Lendlease shares a buy following its half-year results?

Lendlease Group (ASX: LLC) shares are trading in the red again on Tuesday afternoon. At the time of writing, the shares are down another 2.94% for the day, to $4.12 a piece.

Today’s decline follows a sharp sell-off of the international property developer’s shares yesterday after it posted its first-half FY26 results.

Since the announcement early on Monday morning, Lendlease shares have now fallen 10.13% to an all-time low. 

The current trading price also represents a 20.06% decline for the year to date and a 34.32% decline over the past 12 months.

What spooked investors in Lendlease’s latest results?

The property and infrastructure group reported a statutory loss after tax of $318 million for the half year ended 31 December 2025. 

The loss, which includes non-cash negative investment property revaluations and impairments of $118 million primarily in the US, UK, and Singapore, is down from a $48 million profit for the half year for FY24.

Lendlease said the result has been driven by non-cash negative investment property reevaluations and impairments. 

Operating profit after tax (OPAT) was at a loss of $200 million, including profit of $87 million from its Investments, Development and Construction (IDC) division and a loss of $287 million from its Capital Release Unit (CRU).

The company also revealed that it had managed to reduce its net debt to $3.3 billion, which is down $0.1 billion on FY25. It also achieved group statutory gearing of 25.8% and available liquidity of $3.3 billion, which provides balance sheet flexibility.

The Board said it remains committed to returning surplus capital to securityholders, including through an on-market buyback. This will occur once there is more certainty that underlying gearing will be sustainably at 15%. It also assumes that previously stated preconditions have been met.

Lendlease also declared an interim distribution of 6.2 cents per share. This will be paid on 18th March, and the record date is 2nd March. 

Are Lendlease shares a buying opportunity or is it time to sell?

Analysts haven’t confirmed or revised their position or target price on Lendlease shares following its results yesterday morning. But we might expect some movement in the coming days.

At the time of writing, TradingView data shows that analysts are divided about the outlook for Lendlease shares. Out of seven analysts, four hold a strong buy rating on Lendlease stock. Another two have a hold rating, and one analyst has rated the shares as a sell.

However, after the latest crash, all target prices imply an upside ahead for the shares, at the time of writing.

The average target price is currently $5.41 per share, implying a 30.40% upside over the next 12 months. If the maximum target price remains unchanged, then investors could be looking at a huge 56.82% upside to $6.50 a piece.

The post Are Lendlease shares a buy following its half-year results? appeared first on The Motley Fool Australia.

More reading

• Lendlease shares hit fresh lows after reporting $318m loss
• Lendlease half-year results: $318m loss, construction steady, capital recycling on track
• Lendlease announces CEO succession as Tony Lombardo steps down
• Top Australian shares to buy right now with $2,000

Motley Fool contributor Samantha Menzies 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.