Homebuilder Persimmon sees energy price-led cost inflation, holds 2026 delivery target (updated)

Persimmon

30/04/2026 07:18

Faces rising supply costs from energy prices, reviews costs to maintain targets

Builder's in-house supply model helps weather inflation

Enquiries soften as mortgage rates climb

Adds graphic, details of rising costs, sales throughout; shares, analyst comment; paragraphs 4,11

By Raechel Thankam Job

April 30 (Reuters) - Persimmon PSN.L warned on Thursday that surging energy prices could push up costs into the next year, but kept its home delivery forecast unchanged after posting robust sales growth through the first four months of 2026.

Capabilities such as in-house production of bricks, tiles and timber frames have made the company more resilient than peers to rising material costs due to soaring oil prices brought by the Iran war that have squeezed the outlook for the sector.

"There are early signs of increased inflation in the supply chain, driven by higher energy costs, which are likely to impact the second half of 2026 and into 2027", it said.

Its shares rose nearly 3% in early trading.

Berkeley BKGH.L  has warned of slower profit growth through 2030 and paused new land purchases, while Barratt Redrow BTRW.L and Taylor Wimpey TW.L have scaled back land approvals.

Persimmon, which has bucked the trend by pressing ahead with investment in new land, said it will be "even more disciplined" with land buying, given the current backdrop.

The builder said it is reviewing costs and working with suppliers to mitigate impacts and maintained its 2026 home completions target, subject to stable market conditions.

ENQUIRIES SOFTEN AS RATES CLIMB

Persimmon's weekly net private sales per outlet, excluding bulk deals, rose 3% to 0.67 in the year to date, though it acknowledged enquiries had softened slightly in recent weeks, as mortgage rates climbed.

"We are mindful of its (the conflict's) potential impact, including on consumer confidence, and there are early signs of increased inflationary pressure," CEO Dean Finch said, adding it had no material impact yet on trading.

Persimmon expects to report 2026 pre-tax profit in line with market expectations of 462 million pounds ($622.08 million), according to company consensus.

"We think this is a robust update from Persimmon," said JPMorgan analyst Zaim Beekawa, adding that its performance stands out from that of peers.

 ($1=0.7427 pounds)

Persimmon's shares have outperformed the UK homebuilders index https://www.reuters.com/graphics/PERSIMMON-OUTLOOK/gkplkkjbxvb/chart.png

 (Reporting by Raechel Thankam Job in Bengaluru; Editing by Subhranshu Sahu and Clarence Fernandez)

 ((RaechelThankam.Job@thomsonreuters.com;))