Cedar Woods Raises FY26 Net Profit Guidance by 5 Percentage Points to 20%
Cedar Woods Properties has raised its FY26 net profit guidance to at least 20% growth, driven by strong sales and faster project delivery, setting the stage for record earnings and higher dividends.
- FY26 net profit after tax guidance upgraded from 15% to 20% growth
- Strong sales and price growth, especially in Western Australia and Queensland
- Faster project delivery accelerating earnings recognition
- Record profit expected to support increased dividends
- Earnings weighted to the first half of FY26
Upgraded Earnings Outlook
Cedar Woods Properties Limited (ASX, CWP) has announced a further upgrade to its earnings guidance for the fiscal year 2026. The company now expects net profit after tax to grow by at least 20%, up from the previous forecast of 15%. This optimistic revision is underpinned by robust sales performance, price growth across key markets, and accelerated project delivery timelines.
Market Conditions Driving Growth
The company highlights particularly strong conditions in Western Australia and Queensland, where sales prices have already met full-year growth expectations in the first half. South Australia remains steady, while Victoria is showing signs of improvement in enquiry and sales volumes. Overall, Cedar Woods reports historically elevated levels of enquiry and sales, supported by ongoing supply shortages, low unemployment, and government incentives for homebuyers.
Operational Strengths and Strategic Positioning
Beyond market tailwinds, Cedar Woods points to its significant pre-sales, advanced project delivery schedules, and a strong balance sheet as key enablers of its confident outlook. The company also emphasizes disciplined capital and cost management alongside a diversified, high-quality development pipeline, which collectively position it well to sustain growth and shareholder returns.
Dividend Prospects and Earnings Timing
The upgraded guidance anticipates a record profit for FY26, which is expected to translate into increased dividend distributions for shareholders. Notably, earnings are expected to be weighted towards the first half of the fiscal year, reflecting the accelerated pace of project completions and sales recognition.
Looking Ahead
Investors will be keenly awaiting the company’s half-year results announcement scheduled for 24 February 2026, which will provide further detail on financial performance and operational progress. Cedar Woods’ board remains confident in the company’s ability to deliver strong returns amid favourable market dynamics and disciplined execution.
Bottom Line?
Cedar Woods’ upgraded guidance signals strong momentum, but sustaining growth will depend on continued market strength and execution.
Questions in the middle?
- Will rising interest rates eventually dampen buyer demand despite current resilience?
- How will the company’s diversified pipeline perform across different regions in FY26?
- What specific dividend increases can shareholders expect following the record profit?
