Persimmon sees top-end 2026 profit as casts wary eye on events in Iran

Persimmon PLC on Tuesday said it expects to report top-end operating profit in 2026 amid improved demand and stable build cost inflation.

The York, England-based housebuilder said underlying operating profit rose 17% to £472.1 million in 2025 from £405.2 million the year prior, driven by increased volume and a 20 basis points rise in underlying operating margin.

Underlying operating margin improved to 14.3% from 14.1%.

Underlying pretax profit increased 13% to £445.6 million from £395.1 million, ahead of Visible Alpha consensus of £440 million.

Statutory pretax profit rose 11% to £397.3 million from £359.1 million.

Completions rose 12% to 11,905 from 10,664 a year earlier, in line with guidance provided in January, while the average selling price increased 4% to £278,203 from £268,499.

New housing revenue climbed 16% to £3.31 billion from £2.86 billion. Total group revenue increased 17% to £3.75 billion from £3.20 billion.

Net private sales rate per week excluding bulk in the period increased 3.5% to 0.59 from 0.57 a year ago.

Outlets increased to 277 at December 31 from 261 the year before, with Persimmon targetting at least 300 outlets going forward.

Persimmon said market conditions have been supportive - including greater mortgage availability and real wage growth - which, ‘when combined with our increasing outlet base, has underpinned growth.’

In the first nine weeks of 2026, Persimmon said its net private sales rate per outlet per week was 0.73, up 9.0% on-year.

The private average selling price in the order book is up 6%, which combined with increased reservations has resulted in a 9% increase in the private forward sales position to £1.25 billion as at March 1 compared with a year ago at £1.15 billion, the FTSE 100 listing said.

Total forward sales as at March 1 have increased by 6.5% to £1.80 billion from £1.69 billion.

Persimmon said it is managing ongoing cost pressures ‘effectively’ with build cost inflation ‘stable.’

Assuming the Middle East conflict and its impact is ‘short’, the builder expects to deliver between 12,000 and 12,500 completions in 2026, growth of as much of 5.0% on-year, with underlying operating profit towards the upper end of current consensus of £486 million to £517 million.

Chief Executive Dean Finch said 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,’ he added.

In response, shares in Persimmon shot up 8.4% to 1,326.00 pence each in London on Tuesday morning.

Persimmon said increased finance costs will mean underlying profit before tax is expected to be in line with current consensus of £470 million.

‘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,’ said CEO Finch.

Persimmon maintained its final dividend at 40 pence per share, and its total dividend at 60p.

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