Ingenia Communities Group has affirmed its Ingenia FY26 Guidance Top Range positioning, with management confirming the company remains on track to deliver full-year EBIT between $180.5 million and $188.7 million and underlying EPS of 32.5c to 34.0c. The announcement follows a first half result that was in line with expectations, despite year-on-year declines in key metrics, as the Group reverts to a more traditional second half skew driven by development settlement timing.
Ingenia affirms FY26 guidance at top of range as second half acceleration takes shape
Ingenia Communities Group (ASX: INA) has reaffirmed its Ingenia FY26 Guidance Top Range, positioning itself to deliver EBIT between $180.5 million and $188.7 million and underlying EPS between 32.5c and 34.0c. The confidence comes despite a softer first half performance, with management emphasising that results were in line with expectations as the business returns to a pronounced second half skew for development settlements.
The 1H26 performance showed revenue of $257.3 million, essentially flat compared to $256.9 million in 1H25. EBIT declined 1% to $85.0 million from $86.2 million, while statutory profit rose 11% to $97.4 million from $87.6 million. Underlying EPS came in at 15.2c, down from 16.9c in the prior corresponding period.
CEO John Carfi stated the first half demonstrated targeted execution. “Our first half demonstrates targeted execution which puts us on track to deliver the Full Year result at the top of our guidance range,” Carfi said. The strategic framework underpinning this confidence is the company’s 5-Year Plan, which targets a 10-15% settlements compound annual growth rate (CAGR).
| Metric | 1H26 | 1H25 | Change |
|---|---|---|---|
| Revenue | $257.3 million | $256.9 million | Flat |
| EBIT | $85.0 million | $86.2 million | -1% |
| Underlying EPS | 15.2c | 16.9c | -10% |
| Statutory Profit | $97.4 million | $87.6 million | +11% |
For investors, the Ingenia FY26 Guidance Top Range affirmation signals management confidence that operational momentum and contracted settlements will materialise in the second half, offsetting the weaker start to the financial year.
What is a second half skew and why does it matter for Ingenia investors?
A second half skew refers to the uneven distribution of earnings across financial year halves, a common pattern for development-focused real estate companies. Revenue from home sales is recognised upon settlement, the point at which legal ownership transfers and payment completes. These settlements often cluster in the second half due to construction schedules, project phasing, and the timing of regulatory approvals.
For Ingenia, this represents a return to “a more traditional second half skew” according to CEO commentary. The pattern reflects project timelines rather than weakening demand or operational issues. Development projects commence at different points throughout the year, and their completion dates naturally concentrate settlements into particular periods based on construction duration and contractual milestones.
Investors evaluating Ingenia’s performance should therefore assess full-year trajectories rather than drawing conclusions from half-on-half comparisons. A lower first half settlement number does not indicate deterioration if it aligns with planned project delivery schedules. The 440 deposits and contracts currently on hand provide visibility into second half activity, supporting the case that timing rather than demand explains the first half softness.
Development pipeline positions Ingenia for settlement acceleration
Ingenia settled 248 new homes in 1H26, with the group now holding 440 deposits and contracts on hand, representing an increase of over 20% on the prior corresponding period. This contracted pipeline provides clear visibility into 2H26 settlements and supports the full-year guidance positioning at the top of the range.
The development activity is scaling across the portfolio:
- 13 active projects currently in market
- Eight new projects commencing during FY26
- Development pipeline of 4,946 sites across the portfolio
- Additional seven sites in due diligence, with potential to add over 1,700 homes
Joint Venture projects contributed 29% of total settlements in 1H26, up from 23% in 1H25, as this partnership reaches peak contribution during the current financial year. These Joint Venture projects are delivering an average gross margin of 53% with net cash generation per lot exceeding $100,000. Four Joint Venture projects are currently delivering settlements with targeted returns in line with the Group’s objectives.
The Latitude One expansion represents a specific catalyst for 2H26, with the extension project positioned to contribute settlements in the second half. Only 58 completed homes remained unsold at 31 December 2025 across both Ingenia-owned and Joint Venture projects, indicating inventory levels are well-aligned to demand settings.
For investors, the contracted pipeline of 440 deposits translates directly into revenue visibility, supporting not only the FY26 guidance but also providing a runway for growth into FY27. The development pipeline of nearly 5,000 sites positions the business to sustain the targeted 10-15% settlements CAGR over the medium term.
Average home pricing and margins holding firm
Average sales prices across Ingenia projects held steady at $646,000 in 1H26, matching the prior corresponding period. Gross margins on home sales were also maintained despite cost pressures affecting the construction sector. The portfolio spans 13 projects across distinct geographic submarkets, with pricing diversity ranging from $475,000 to over $1,000,000 depending on location and product type.
This pricing resilience and margin stability indicate two things for investors: demand remains solid across the portfolio, and cost management initiatives are working. The ability to hold pricing while maintaining margins in a rising cost environment demonstrates both the appeal of Ingenia’s product offering to the target demographic and effective procurement and construction management.
Recurring revenue streams deliver operational stability
While development settlements drive growth, Ingenia’s diversified revenue model provides operational stability during periods of development timing fluctuations. The Lifestyle Rental and Holidays businesses delivered consistent year-on-year growth in 1H26.
Lifestyle Rental EBIT increased 6% to $25.7 million, benefiting from annual rental increases and growth in the occupied site base as development projects added new homes at generally higher rents. Holidays EBIT rose 10% to $31.5 million, driven by improved occupancy, higher average rates, and the contribution from recently acquired assets. Tourism rental income specifically increased 14% year-on-year.
Rental growth metrics across the land lease communities showed varied patterns:
- Average rental increases on review: 3.5% (reflecting government restrictions on increases)
- Average rent increases on resales: 6%
- All-age build-to-rent rent increases: 7.9% weighted average
January 2026 tourism revenue increased 11% compared to the prior year, with 12-month forward bookings up 11% on the prior corresponding period. These forward booking metrics provide visibility into continued Holidays segment growth through the second half of FY26.
John Carfi, CEO and Managing Director
“Operationally, we have seen good momentum across the business with ongoing high occupancy across our residential communities, and holiday occupancy is up on the previous corresponding period.”
The recurring revenue streams accounted for a material proportion of Group EBIT and provide cash flow predictability that complements the lumpier development earnings profile. For investors, this diversification reduces earnings volatility and provides downside protection during periods when settlement timing creates development revenue concentration.
Recent acquisitions contributing to growth
Ingenia deployed capital into strategic acquisitions during 1H26, adding both development capacity and tourism assets. The group acquired a 29-hectare greenfield land lease site in Townsville, Queensland for $15 million in November 2025. This acquisition expands the development pipeline in a regional market aligned to the group’s demographic and affordability positioning.
On the tourism side, Ingenia acquired Kinka Beach and a nearby site for a combined $11 million. Early performance from recent holiday park acquisitions has been strong, with Kinka Beach delivering improved occupancy and rate growth since acquisition. The value of Ingenia Holidays Tomakin, acquired in February 2025, has increased over 30% following execution of the asset plan, demonstrating the group’s capability to enhance returns through active management of acquired properties.
The Rivershore Resort expansion on the Sunshine Coast commenced in 2H26, representing another organic growth initiative within the tourism portfolio. These acquisitions and expansions provide earnings growth from both immediate contributions and medium-term densification opportunities.
Balance sheet supports continued growth investment
Ingenia’s balance sheet positioning provides capacity for ongoing growth investment while maintaining financial flexibility. Gearing stood at 31.1% at 31 December 2025, sitting at the mid-point of the group’s targeted range.
During 1H26, the Group increased total debt facilities by $100 million, with no debt maturities scheduled before January 2027. The average debt maturity across the portfolio is 3.3 years. Liquidity remains robust at $199 million, comprising cash and available undrawn debt facilities.
Capital deployment metrics for 1H26:
- Total growth investment: $88 million
- Development projects: $57 million
- Townsville acquisition: $15 million
- Holiday park acquisitions: $11 million
The group also identified lower growth assets across the portfolio that could be divested if required, providing additional capital recycling optionality. This strategic flexibility means Ingenia can access capital for opportunistic acquisitions or accelerated development without compromising balance sheet settings.
For investors, the conservative gearing position and substantial liquidity buffer indicate the business can fund its development pipeline and pursue acquisitions without requiring equity capital. The identification of potential divestment candidates provides further confidence that growth can be self-funded through portfolio optimisation.
Outlook and FY26 delivery pathway
Management reaffirmed the Ingenia FY26 Guidance Top Range positioning, with the business on track to deliver EBIT of $180.5 million to $188.7 million and underlying EPS of 32.5c to 34.0c. This confidence rests on several foundations.
Industry demand drivers remain intact. An ageing population, structural housing undersupply, and the need for affordable living options continue to support demand for Ingenia’s product. The group currently sells across 13 projects in distinct submarkets, with pricing ranging from $475,000 to over $1,000,000, providing exposure to different buyer segments and geographic markets.
Development activity is set to accelerate in 2H26. The 440 deposits and contracts on hand translate directly into settlement activity over the coming months. Two new communities will contribute settlements in FY26, including the Latitude One expansion. Higher return projects commencing in the second half are expected to improve both net margins and cash generation per settlement.
Despite recent interest rate movements, demand across Ingenia’s projects has remained solid according to management commentary. The contracted pipeline provides a runway for settlements growth extending into FY27, supporting the medium-term 10-15% CAGR target outlined in the 5-Year Plan.
The Holidays business outlook is positive, supported by strong January performance (11% tourism revenue growth) and elevated forward bookings (11% above prior year). Opportunities for organic growth through densification and targeted marketing provide additional upside.
John Carfi, CEO and Managing Director
“With the foundations now in place for delivery of the 5-Year Plan our team remains committed to focused execution and opportunities for accelerated growth.”
For investors, the Ingenia FY26 Guidance Top Range affirmation, combined with contracted settlement visibility, structural demand tailwinds, and operational momentum across both development and recurring revenue streams, supports the investment thesis extending beyond the current financial year. The business has declared a half-year distribution of 4.8 cents per stapled security, payable on 26 March 2026.
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