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Perth-headquartered residential developer Cedar Woods Properties (ASX: CWP) has reaffirmed its upgraded profit growth of up to 35 per cent in FY26 and revealed the momentum will continue into the new financial year after posting record presales and the strongest quarterly sales performance in its history.
The company's third-quarter update, released today, shows 442 gross sales in the three months to 31 March 2026, supported by a record 9,663 enquiries across its national portfolio.
Presales of $788 million are up 12 per cent on the prior corresponding period figure of $700 million, giving Cedar Woods significant earnings visibility heading into the final quarter of FY26 and into FY27.
The third-quarter performance has led Cedar Woods to reaffirm its full-year NPAT growth forecast for FY26 which prior to the first-half profit announcement in February stood at a "minimum of 20 per cent".
"Customer enquiry remained exceptionally strong in the quarter, with 9,663 enquiries - the highest quarterly result in our history - and this continued to translate into solid sales outcomes, with 442 gross sales in 3Q, our second strongest quarter on record,” says Cedar Woods managing director Nathan Blackburne.
“With record presales of more than $788 million and over 80 per cent of forecast FY27 revenue already secured, we have strong earnings visibility and remain on track to deliver FY26 guidance of 30 per cent to 35 per cent NPAT growth, while supporting continued profit growth in FY27.
"Importantly, our strong balance sheet, low gearing and significant undrawn facilities position us well to fund delivery and pursue acquisitions.”
The guidance builds on a record first half in which Cedar Woods posted net profit after tax of $39.6 million, up 163 per cent on the prior corresponding period of $15.0 million.
First-half revenue rose 40 per cent to $274.8 million, while the gross margin improved to 31 per cent from 26 per cent a year earlier, with the company noting strong demand across its Western Australian, Victorian and Queensland projects.
Cedar Woods has continues to deploy capital into new opportunities.
It recently acquired a site at Springvale in Melbourne's south-east for $23.8 million, earmarked for 91 townhouses, adding to its Victorian pipeline alongside the 400-home Somerley project in Geelong, which was secured for $34.9 million late last year.
The Geelong project marked the developer's first entry into the region.
Western Australia and Queensland were the company’s strongest performing markets during 3Q26, while South Australia remained steady.
However, conditions in Victoria weakened after showing signs of improvement in the first half.
"Price growth continued to be achieved across the portfolio, reflecting ongoing demand for well-located housing product," says the company.
"Sales and enquiry activity has softened in recent weeks, reflecting lower consumer confidence, rising interest rates and the conflict in the Middle East, but overall the fundamentals remain strong."
Cedar Woods says project returns should remain resilient given its diversified portfolio and strong presales position.
"A significant, structural shortfall of housing across Australia persists and this is expected to continue to support sales volumes for the company, noting it will take many years for the shortfall to be addressed," says the company.
Cedar Woods' portfolio spans Western Australia, Victoria, Queensland and South Australia, with active projects including Bushmead and Ariella in Perth, Williams Landing and Riverton in Melbourne, and Ellendale on the Gold Coast.
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