Persimmon Plc (LON:PSN) has announced its full year results for the year ended 31 December 2025.
Dean Finch, Group Chief Executive, said:
“Persimmon delivered a strong performance for 2025, with completions growing 12% and underlying profit before tax increasing 13%. This reflects our sustained investment in the business and our commitment to self-help, enabling us to grow in a challenging market. I want to thank all my colleagues for their dedication and expertise in delivering this result; I am proud to work alongside them.
“Sales in the opening weeks of the year have been strong and the build to rent market is recovering from the slowdown around November’s Budget. Whilst we have good visibility of both our costs for 2026 and our demand from registered providers and BTR, the impact of the Iran conflict on customer sentiment remains to be seen. Assuming the conflict with Iran and its impact is short, Persimmon is set to grow again in 2026.
“Our three distinctive brands all grew last year, diversifying our market reach. Our strengthened brands, strategic land bank, on-going investment and operational improvements, supported by our balance sheet and unique vertically integrated model, position Persimmon well to grow into the medium term.”
Financial highlights
| 2025 | 2024 | Change | |
| New home completions | 11,905 | 10,664 | +12% |
| New home average sales price | £278,203 | £268,499 | +4% |
| New housing revenue | £3.31bn | £2.86bn | +16% |
| Underlying operating profit1 | £472.1m | £405.2m | +17% |
| Underlying operating margin1 | 14.3% | 14.1% | +20bps |
| Underlying profit before tax1 | £445.6m | £395.1m | +13% |
| Underlying return on average capital employed2 | 11.7% | 11.1% | +60bps |
| Dividend per share | 60p | 60p | – |
| Cash at 31 December | £117.0m | £258.6m | £(141.6)m |
Statutory measures
| Total Group revenue | £3.75bn | £3.20bn | +17% |
| Profit before tax | £397.3m | £359.1m | +11% |
Operational highlights
| Land holdings at 31 Dec – plots owned and under control | 84,879 | 82,084 | +3% |
| Number of sales outlets at 31 December | 277 | 270 | +3% |
| Current private forward sales position3 | £1.25bn | £1.15bn | +9% |
| · | 12% increase in completions to 11,905 new homes with growth across all three brands. |
| · | 17% increase in underlying operating profit1, driven by increased volume and on-going operational excellence; 20bps improvement in underlying operating margin1. |
| · | Net private sales rate per week excluding bulk in the period up 4% at 0.59 (2024: 0.57). Total net private sales rate of 0.70 per outlet per week (2024: 0.70) affected by slower bulk sales in Q4 2025. |
| · | Continue to track at five-star HBF rating and ‘Excellent’ Trustpilot score. |
| · | 3% growth in outlets to 277 at 31 December as we progress towards our target of at least 300 outlets, with average outlets in the year up 4% to 271 (2024: 261). |
| · | 12,815 plots achieved detailed planning in the period, equivalent to 108% of completions, continuing to benefit from our enhanced planning approach. |
| · | Continuing to invest in growth, with £541m net spend on land (2024: £437m); strong strategic land pipeline, up 10% to over 77,000 potential plots, and investment in strategic capabilities. |
| · | Underlying return on average capital employed2 including land creditors up 60bps to 11.7% (2024: 11.1%). |
| · | Further building safety progress: c.90% of known developments either fully tendered, on site or completed. |
Current trading and outlook
Market conditions have been supportive – including greater mortgage availability and real wage growth – which, when combined with our increasing outlet base, has underpinned growth. We welcome the beneficial changes to the planning environment that the Government has introduced, which should support further outlet growth over time. Our diversified value-positioned brands and strong platform position us well to meet increasing demand, supported by our sustained investment in land, continued success in planning, vertical integration and commitment to quality and customer service.
In the first nine weeks of this year our net private sales rate per outlet per week was 0.73, up 9% compared to the same period last year (2025: 0.67). The private average selling price in the order book is up 6%, which combined with increased reservations has resulted in a 9% increase in our private forward sales position to £1.25bn as at 1 March compared with a year ago (2025: £1.15bn). Total forward sales as at 1 March have increased by 6% to £1.80bn (2025: £1.69bn).
With stable build cost inflation and our unique vertical integration, we are managing ongoing cost pressures effectively while investing in further capacity and innovation. This, together with our investment in land and plans to open more than 100 outlets in 2026, positions us well. We are monitoring the impact the conflict with Iran could have on our markets in 2026, including on customer sentiment, build cost inflation and interest rates. Assuming the conflict and its impact is short, we expect to deliver between 12,000 and 12,500 completions in the year, with underlying operating profit towards the upper end of current consensus4. Our investment for growth at this point in the cycle, will result in increased finance costs and therefore underlying profit before tax is expected to be in line with current consensus4.
The enduring aspiration for home ownership remains strong and provides the opportunity for growth into the medium term. Continued strategic investment in the business and our self-help strategy over recent years has positioned us well for future expansion. This investment, along with capital allocation choices as we progress our building safety remediation work, will enable us to convert market opportunities into sustainable growth in support of our medium-term ambitions to deliver an underlying operating margin and ROCE of 20% and increased returns for our shareholders.
Footnotes
| 1 | Underlying measures are stated before net exceptional charge of £44.9m (2024: £34.4m), and goodwill impairment (2025: £3.4m; 2024: £1.6m). Margin based on new housing revenue (2025: £3.31bn; 2024: £2.86bn). |
| 2 | 12 month rolling average calculated on operating profit before net exceptional charge and goodwill impairment and total capital employed. Capital employed being the Group’s net assets less cash and cash equivalents plus land creditors |
| 3 | As at 1 March 2026; comparative figure as at 2 March 2025. |
| 4 | Company compiled full year 2026 consensus as at 6 March of 12,136 homes, an underlying operating profit range of £486m to £517m and underlying profit before tax mean of £470m. |
There will be an analyst and investor presentation at 09.00 today, hosted by Dean Finch, Group Chief Executive and Andrew Duxbury, Chief Financial Officer.
Analysts unable to attend in person may listen live via webcast using the link below. All participants must pre-register to join the webcast. Once registered, an email will be sent with important details for this event, as well as a unique Registrant ID. This ID is to be kept confidential and not shared with other participants.
Live webcast: https://edge.media-server.com/mmc/p/cudgg43d/
An archived webcast of today’s analyst presentation will be available from this afternoon on www.persimmonhomes.com/corporate.
Appendices
| 1 March 2026 | 2 March 2025 | Change | ||||
| Forward sales | Value | Homes | Value | Homes | Value | Homes |
| Private | £1.25bn | 4,110 | £1.15bn | 3,971 | +9% | +4% |
| Housing Association | £0.55bn | 3,383 | £0.54bn | 3,406 | +0% | (1)% |
| Total | £1.80bn | 7,493 | £1.69bn | 7,377 | +6% | +2% |
