Persimmon (PSN) H1 2025 earnings summary

Executive summary

• Achieved strong first-half growth in completions, ASPs, sales rates, outlets, consents, and profits, with completions up 4% to 4,605 units and robust pricing.

• Strategy focused on land, brands, quality, innovation, and balance sheet strength, enabling profitable growth despite market challenges.

• Maintained five-star customer satisfaction for the fourth year and achieved best-ever Trustpilot scores, reflecting ongoing improvements in build quality and service.

• Forward order book increased 9% year-over-year to £1.9bn, providing confidence in full-year delivery targets.

• Significant investment in land and innovation, including vertical integration and digitalisation, supporting future growth.

Financial highlights

• Underlying PBT up 11% year-over-year to £165m; underlying EPS up 3% to 36.8p.

• Housing revenue rose 12% to £1,308m; total group revenue up 14% to £1.50bn; gross profit up 11% to £262.4m; gross margin maintained at 20.1%.

• Underlying operating profit increased 13% to £172m; margin up 10bps to 13.1%.

• Net cash at June was £123m; net asset value per share up 2% to 1,088p.

• Interim dividend declared at 20p per share, in line with last year; £128.1m returned as final 2024 dividend.

Outlook and guidance

• On track to deliver 11,000–11,500 completions in 2025, with volume growth to c.12,000 units anticipated in 2026.

• Housing operating margin guidance for 2025 at 14.2%–14.5%; margin growth expected to be gradual and back-end loaded.

• Forward order book up 11% at £1.25bn for private sales and 9% at £1.86bn including partnerships.

• 80% of private completions and all partnership completions secured for the full year.

• No expectation of significant market improvement or government demand stimulus; growth reliant on self-help measures.