Goodman set for sharp rise in development income as its WIP pipeline converts

Australian property group Goodman Group's (ASX: GMG) development pipeline is set to become a bigger contributor to earnings as projects move from work in progress into completion. Development WIP rose 53% year-on-year to A$19.7 billion in FY26, with data centers accounting for 78% of the pipeline. The shift towards data centers is significant as Goodman continues to expand its exposure to infrastructure supporting cloud and AI workloads.

Visible Alpha consensus points to further growth in FY27, with development WIP expected to rise 14% to A$22.5 billion.

More importantly for near-term earnings, analysts expect A$5.4 billion of development completions, up 50% from FY26. The conversion of this pipeline into completed projects is expected to drive a 54% increase in Goodman’s development income to A$2.5 billion in FY27, making development an estimated 71% of total revenue, up from 63% in FY26.

Overall, analysts expect the development-led increase to lift Goodman’s group revenue 37% to A$3.6 billion in FY27, pointing to a significant acceleration in earnings as the company converts its growing data center and logistics pipeline into completed projects.

This article was published by Visible Alpha, part of S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.