Persimmon PLC

Latest Results (04.04.2026):

This summary covers Persimmon PLC's full‑year results for the year ended 31 December 2025 (FY2025, including Q4 2025). The group delivered volume and earnings growth: new home completions rose 12% to 11,905, new housing revenue increased 16% to £3.31bn and underlying profit before tax rose 13% to £445.6m. Management maintained a 60p total dividend, progressed building‑safety remediation, expanded its land and outlet base, and issued guidance for further growth in 2026 (12,000–12,500 completions and operating profit near the upper end of consensus), while increasing financing to support investment.

Key financials

Completions: 11,905 (+12%); new housing revenue £3.31bn (+16%); total Group revenue £3.75bn (+17%). Underlying operating profit £472.1m (+17%) and underlying profit before tax £445.6m (+13%). Underlying operating margin 14.3% (up 20bps). Underlying basic EPS 100.7p (up 9%); reported EPS 89.3p (up 7%).

Cash, debt and liquidity

Cash at 31 Dec 2025 £117.0m (down from £258.6m). Land creditors rose to £623.4m. Group increased secured facilities: RCF extended and increased to £750m and a new £250m term facility added (total secured funding £1bn). 2026 net cash/debt is forecast between £100m net debt and £100m net cash.

Capital allocation & dividend

Board proposes final dividend 40p (total 60p for 2025 including 20p interim). Net land spend £541m in 2025 as Persimmon invests for growth while retaining a capital allocation policy balancing investment and shareholder returns.

Operational metrics & platform

Outlets: 277 (+3%); strategic land owned/under control 84,879 plots (+3%); strategic pipeline >77,000 potential plots (+10%). Private forward sales at 1 March 2026 £1.25bn (+9% y/y); total forward sales £1.80bn (+6%). HBF five‑star rating and Trustpilot ‘Excellent’ maintained.

Building safety & exceptional items

Net exceptional charge £44.9m (2025) including a £39.8m increase in the legacy buildings provision; provision at 31 Dec 2025 £226.0m and cash spend to date >£175m with ~£56.1m used in 2025. Company expects peak remediation cash outflow over next 18–24 months (~£100m in 2026).

Outlook for 2026

Management expects 12,000–12,500 completions in 2026 assuming the Iran conflict and its effects are short; underlying operating profit expected toward the upper end of company‑compiled consensus (£486m–£517m) and underlying PBT around consensus (~£470m) after higher finance costs for growth investment. Early 2026 trading: net private sales rate up and private orderbook ASP +6%.

Other notable items

Sale of non‑core FibreNest generated net proceeds £68.1m and a profit on disposal £11.1m. Continued vertical‑integration investment (bricks, tiles, timber frames) to support margins and build efficiency. Underlying ROCE including land creditors 11.7% (up 60bps).