Taylor Wimpey (TW) Q4 2025 TU earnings summary

Executive summary

• Delivered robust performance in 2025 despite industry challenges, customer uncertainty from a delayed budget, and challenging market conditions, with increased completions and revenue year-over-year.

• Maintained focus on unlocking value, maximizing shareholder returns, and confidence in medium-term positioning and strategy execution.

• UK net private reservation rate held steady at 0.75 homes per outlet per week, with a stable 15% cancellation rate year-over-year.

• Group revenue rose to approximately GBP 3.8 billion, driven by higher volumes, average selling prices, and land sales.

• Ended 2025 with 219 outlets, up from an average of 208, and expect further outlet growth in 2026.

Financial highlights

• Total group completions, including joint ventures, reached 11,229; UK home completions (excluding JVs) were 10,614, in the middle of guidance.

• UK average selling price was GBP 335,000, slightly below guidance due to mix and higher affordable completions; private completions averaged GBP 374,000.

• Order book at year-end valued at circa GBP 1.86 billion, down from GBP 2 billion the previous year.

• Group operating profit expected at circa GBP 420 million, with an operating margin of around 11% for 2025, including a 60bps benefit from land sales.

• Net cash at year-end was GBP 343 million; expect lower net cash at half-year due to second-half weighting of completions and higher cladding payouts.

Outlook and guidance

• Expect 2026 to be more second-half weighted due to a lower opening order book and subdued autumn trading.

• Group operating margin anticipated to be lower in 2026 than 2025, reflecting softer pricing on bulk sales and site-specific London transactions.

• Low single-digit year-on-year volume growth expected in a stable market, assuming sales rates hold and outlet growth continues.

• Average selling price in 2026 likely to benefit from mix, with a potential 2% uplift from 2025 levels.

• Full 2026 guidance to be provided after the spring selling season.