Vistry Group (VTY) H2 2025 earnings summary

Executive summary

• Profit before tax for 2025 was in line with expectations, supported by a strong second half despite challenging market conditions and no external market support.

• The group underwent significant reorganization, resulting in a leaner, more efficient, and stable business focused on capital allocation and inventory reduction.

• The company is responsible for 15% of all affordable homes built in the country, delivering 1 in 7 affordable homes in the UK, and is well-positioned for growth with the upcoming GBP 39 billion affordable housing program (2026–2036).

• CEO Greg Fitzgerald announced his planned retirement, with succession processes underway.

Financial highlights

• Revenue declined 4% year-over-year to £4,155.3m, with completions down 9%, but average selling price (ASP) increased slightly due to mix.

• Adjusted EPS grew 6% year-over-year to 59.3p, outpacing profit before tax growth, mainly due to share buybacks.

• Net debt reduced to GBP 144 million at year-end, with a 20% reduction and total net cash inflow of £36.5m.

• Gross margin improved by 100 basis points to 13.9%, driven by new higher-margin sites and improved site mix.

• Net finance costs fell 9.7% year-over-year, with effective tax rate at 27.9%.

• Exceptionals dropped significantly as prior year included a GBP 100 million building safety provision; current year exceptionals mainly relate to legal and restructuring costs.

Outlook and guidance

• On track for volume and revenue growth in 2026, targeting delivery of 17,000 units, with a forward order book of £4.5bn and 67% of 2026 units already secured.

• Confident in achieving profit growth in 2026, despite margin pressure from sales incentives.

• Targeting a net cash position of approximately £100m by year-end 2026, with a strong focus on cash generation, inventory reduction, and scaling Partner Funded activity.

• Cautious outlook due to geopolitical uncertainty in the Middle East, which could impact build costs and consumer confidence.