Cairn Homes (CRN) H2 2024 earnings summary

Executive summary

• Achieved record revenue of €860 million from 2,241 units in 2024, a 29% year-over-year increase, with operating profit up 32% to €150 million and a 17.4% operating margin.

• Closed and forward order book valued at nearly €1 billion, covering almost 2,600 new homes.

• Returned €115.3 million to shareholders in FY24 through dividends and buybacks, with a proposed final dividend of 4.4c for a total FY24 payout of 8.2c.

• Strong momentum carried into 2025, with 4,100 new homes commenced and 11 launches planned for H1 2025.

• Confident outlook for continued growth in volumes, revenue, and profitability in FY25, supported by strong market demand and a resilient balance sheet.

Financial highlights

• Gross margin at 21.7%, slightly down due to product mix and increased affordable state home delivery.

• Profit after tax reached €114.6 million, up 34% year-over-year; EPS grew 41% to 17.9 cents.

• Net asset value per share at 122 cents; net assets stable at €758.2 million.

• Operating costs reduced to 4.3% of revenue, reflecting disciplined cost management.

• €134.7 million operational cash flow generated, after €100 million invested in land.

Outlook and guidance

• 2025 guidance: revenue to exceed €946 million (+10%), operating profit to reach ~€160 million, ROE to rise to ~15.5%.

• Eleven private sale launches planned in H1 2025 to further grow the pipeline.

• Multi-year growth expected in volumes, revenue, and profitability.

• Spring 2025 selling season described as extremely strong.

• Continued investment in land and WIP to support medium- and long-term growth.