Persimmon (PSN) Q4 2025 TU earnings summary

Executive summary

• Achieved 12% growth in completions to 11,905, with underlying profit before tax at the upper end of expectations and double-digit margin growth year-over-year.

• Growth in completions driven by 30% increase in affordable, 20% in PRS, and 6% in private, with blended ASP up 4%.

• Maintained high quality standards, retaining HBF five-star rating for the fourth consecutive year.

• Strong pipeline of land opportunities and outlet growth expected to support continued profit growth into 2026 and 2027.

Financial highlights

• Blended average selling price increased 4% to approximately £278,000 year-over-year; private ASP up 5%, affordable ASP up 4%.

• Underlying profit before tax expected at the upper end of guidance, with double-digit growth.

• Net cash at year-end was approximately £116m, after returning £192m to shareholders.

• Gross land spend rose to about £560m, up from £465m in 2024.

• Forward sales value increased 2% to £1.17bn, with private forward sales up 4% to £680m.

Outlook and guidance

• 2026 expected to deliver profit growth within current consensus, but at a slower pace due to moderated growth in affordable and PRS sales.

• Outlet growth to drive future volume increases, with more significant expansion expected towards the end of 2026 and into 2027.

• 2026 consensus: 12,043 homes and underlying profit before tax between £461m and £487m.

• Margin progression in 2026 anticipated to be similar to 2025, with headwinds from embedded inflation and new taxes.

• Fewer bulk sales and challenges in the registered provider market may slow growth in 2026.