Taylor Wimpey (TW) H1 2025 earnings summary

Executive summary

• Delivered resilient H1 performance with group completions up 11.3% to 5,264 homes and revenue rising 9% year-over-year, despite a softer Q2 market and a £20m one-off charge for remedial works at a London development.

• Operating profit margin declined to 9.7% (from 12.0% prior year), impacted by exceptional charges and increased cladding/fire safety provision.

• Interim dividend per share set at 4.67p, with £165m returned to shareholders via the final ordinary dividend.

• Maintained a strong landbank (c.76k plots) and balance sheet, supporting future growth and reliable dividends.

• Customer satisfaction and build quality scores improved, maintaining five-star builder status.

Financial highlights

• Group revenue rose to £1,654.6m, up 9% year-over-year, driven by higher completions.

• Underlying H1 operating profit (excluding the £20m charge) was £181m (margin 10.9%); reported margin 9.7%.

• Loss before tax of £92.1m, reflecting £222m cladding fire safety provision and £18m CMA provision.

• Tangible net asset value per share fell to 117.5p, mainly due to increased cladding provision.

• Net cash at period end was £326.6m, with low gearing at 4.9%.

Outlook and guidance

• Full-year UK completions (excluding JVs) guided at 10,400–10,800; consensus at 10,588.

• Group operating profit for 2025 expected around £424m, reflecting the H1 charge.

• Year-end net cash anticipated at c.£350m, with continued focus on capital discipline.

• Interim dividend of 4.67p per share announced; policy to return 7.5% of net assets annually remains unchanged.

• H2 2025 expected to see improved operating margin due to higher completions and ASP mix.