Persimmon (PSN) H1 2026 earnings summary

Executive summary

• Achieved strong first-half performance with a 13% increase in completions and market share gains across all three brands, despite challenging market conditions.

• Maintained high build quality and customer satisfaction, earning a five-star HBF rating for the fifth consecutive year.

• Continued disciplined investment in land, outlets, and capabilities, including vertical integration and innovation, to support long-term value creation.

• Strategy focused on sustainable growth, a high-quality land bank, three distinct brands, and improved build quality and customer service.

• Maintained a strong balance sheet, enabling investment and sustainable shareholder returns.

Financial highlights

• New housing revenue up 13% to £1.48bn; total revenue rose 15% to £1.73bn.

• Underlying operating profit increased 10% to £189.1m; underlying profit before tax up 3% to £170.1m.

• Gross profit £267m; gross margin declined to 18% due to cost pressures and incentives.

• Underlying EPS up 3% to 38.0p; net asset value per share increased 3% to £11.25.

• ROCE improved to 11.3%; net debt at £165m as of June 2026.

Outlook and guidance

• Full-year completions expected at the upper end of guidance, around 12,500 units.

• Underlying profit before tax for the year expected in line with consensus/market expectations.

• Margin recovery continues to be impacted by embedded inflation and affordability constraints, with build cost inflation for 2026 expected at 3-4%.

• Medium-term ambition remains 20% operating margin and ROCE.

• Year-end net cash and adjusted gearing expected in line with previous guidance.