Peet Limited (ASX:PPC) Releases FY26 Guidance with 26-34% Earnings Growth Forecast
Peet Limited (ASX:PPC) has issued its Peet FY26 earnings guidance, forecasting a significant Net Profit After Tax (NPAT) between $74 million and $78 million. This projection represents a 26% to 34% growth compared to the company’s FY25 earnings. The guidance reflects strong operational performance, particularly in its Western Australia and Queensland portfolios, which are benefiting from supportive macroeconomic conditions.
Furthermore, the residential property developer reported approximately $750 million in contracts on hand as of 19 November 2025, a notable 23% increase from its position at 30 June 2025. This substantial contract pipeline provides a clear line of sight into future earnings, although the company notes the guidance is subject to prevailing market conditions and the specific timing of settlements.
For investors, this ASX announcement offers a concrete view of Peet’s growth trajectory. The company currently has approximately 465.7 million shares on issue and a market capitalisation of around $887 million at the time of the update.
| Metric | Value | Context |
|---|---|---|
| FY26 NPAT Guidance | $74M – $78M | 26-34% growth vs FY25 |
| Contracts on Hand | ~$750M | As at 19 November 2025 |
| Contract Growth | +23% | Since 30 June 2025 |
| Settlement Dependency | Material | Timing affects revenue recognition |
| Market Capitalisation | ~$887M | At announcement date |
What Factors are Driving Peet’s Earnings Growth Forecast?
The positive Peet FY26 earnings guidance is supported by two main pillars: favourable macroeconomic conditions and robust operational execution. Externally, residential property demand is being sustained by high levels of overseas migration, persistent housing supply constraints, and a stable labour market. These conditions create strong demand for the company’s residential land and community developments.
Operationally, Peet has achieved strong results in its Western Australia and Queensland portfolios. The company’s disciplined approach to capital management and project delivery ensures it can meet market demand effectively. The 23% increase in contracts on hand since June 2025 is direct evidence of this sales momentum, converting buyer interest into secured future revenue.
| Growth Driver | Impact on Peet |
|---|---|
| Migration & Supply Constraints | Sustained demand for residential land |
| Interest Rate Environment | Improved affordability for first home buyers |
| Government Stimulus | Boosts target customer purchasing power |
| WA/QLD Portfolio Performance | Driving current earnings momentum |
Which Markets are Contributing to the FY26 Outlook?
Peet’s geographic diversification allows it to benefit from various property cycles across Australia. The current earnings forecast is largely driven by strong performance in its Western Australia, Queensland, and South Australia portfolios, where demand remains high.
In contrast, the ACT/NSW and Victoria markets are described as showing early signs of improvement. This positions Peet to capitalise on a recovery in these regions, providing a source of medium-term growth potential. This staggered market exposure means the company is not reliant on a single market, which helps to mitigate regional risks.
| Market | Current Status | Investment Implication |
|---|---|---|
| Western Australia | Strong performer | Driving FY26 guidance |
| Queensland | Strong performer | Contributing to current momentum |
| South Australia | Strong demand | Supporting earnings base |
| ACT/NSW | Recovery signs emerging | Medium-term upside opportunity |
| Victoria | Recovery signs emerging | Medium-term upside opportunity |
How do Contracts on Hand Support the Guidance?
Peet holds approximately $750 million in contracts on hand as of 19 November 2025. This figure, which has grown by 23% in under five months, represents signed purchase agreements that are yet to settle. These contracts will convert into recognised revenue as settlements occur, providing a strong and visible pipeline that underpins the company’s profit forecast.
For investors, this metric is a key forward indicator of earnings. The $750 million pipeline significantly de-risks the $74-78 million NPAT forecast, as it is based on secured transactions rather than just projected sales. The rapid growth in this figure indicates that Peet is successfully converting market demand into binding contracts at an accelerated rate.
What is Settlement Timing and Why Does it Matter?
The announcement highlights that the Peet FY26 earnings guidance remains subject to the “timing of settlements.” This is a critical variable for property developers. A settlement is the final stage where legal ownership of a property is transferred to the buyer, and at this point, the developer can officially recognise the revenue.
While Peet’s $750 million in contracts on hand are secured, the exact financial quarter in which the revenue is recorded depends on when each individual settlement occurs. This can introduce variability between quarterly results, even if the full-year performance is stable.
Several factors can influence settlement timing, including:
- Buyer Finance: Delays in purchasers securing final mortgage approval.
- Construction Timelines: The completion of necessary infrastructure or amenities for land lots.
- Administrative Processes: The time required for land titles to be issued by government bodies.
For investors, this means full-year guidance is often a more reliable performance indicator than short-term quarterly results, which can be affected by the scheduling of settlements.
Want more ASX news?
Looking to stay ahead of major developments in ASX industrial companies like Peet Limited? Subscribe to StockWire X’s free Big News Blasts and join over 20,000 investors receiving instant email alerts on significant industrial announcements, each accompanied by detailed analysis. With a quality filter ensuring only major news events are distributed, subscribers gain access to the most important market-moving information without the noise. Join today to receive comprehensive insights delivered directly to your inbox.