Persimmon (PSN) H2 2025 earnings summary

Executive summary

• Delivered double-digit growth in 2025, accelerating recovery from 2024, with increased completions, ASP, sales rate, returns, and profit.

• Achieved strong growth in a challenging market, with clear strategy execution and disciplined investment driving expansion.

• All three brands grew in 2025, with enhanced market positioning and efficiency, supporting entry into new markets and customer segments.

• Outlets increased 3% to 277, and completions rose 12% year-over-year to 11,905 units.

• Significant progress in building safety remediation, with 77% of known developments on site or completed and provision reduced.

Financial highlights

• Underlying profit before tax up 13% to £446m; underlying EPS up 9% to 100.7p year-over-year.

• Housing revenue up 16% to £3,312.0m; gross profit up 13% to £656.3m.

• Operating profit up 17% to £472.1m, with margin up 200bps to 14.3%.

• Net cash at year-end £117m; adjusted gearing at 14%.

• Net asset value per share increased 3% to 1,127p.

Outlook and guidance

• 2026 volume guidance raised to 12,000–12,500 units, ahead of previous guidance, with growth dependent on open market sales and a stable market.

• Operating profit expected toward the upper end of current expectations; adjusted gearing to rise due to investment in land and WIP.

• Margin progression to continue but pace impacted by embedded inflation and external risks.

• Strong start to 2026 with forward order book up 6% to £1.8bn and private book up 9%.

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