REG - Persimmon Plc - 2025 Trading Statement

PersimmonAnnouncement

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RNS Number : 5821O  Persimmon PLC  13 January 2026

 

13 January 2026

 

2025 Trading Statement

 

Strong growth with completions up 12%; full year underlying PBT at the upper
end of market expectations

 

Persimmon Plc today announces the following update ahead of its Final Results
for the year ended 31 December 2025, which will be released on 10 March 2026.

 

Dean Finch, Group Chief Executive, commented:

 

"Persimmon performed well during 2025, in a challenging market. We have
delivered a 12% growth in completions, ahead of market expectations, and we
expect to report underlying profit before tax at the upper end of market
expectations(1). This performance demonstrates the benefit of our sustained
investment in recent years, alongside our self-help strategy, broad geographic
coverage and increased outlets, to create a differentiated growth platform.

 

"I want to extend my thanks to our colleagues, subcontractors and suppliers
for their support during 2025, and their role in helping us deliver
high-quality, sustainable homes at affordable prices to our customers."

 

2025 Highlights

                                        2025         2024       change
 New home completions                   11,905       10,664     +12%
 Average selling price                  c.£278,000   £268,499   +4%
 Net private sales per outlet per week  0.70         0.70       +0%
 Forward sales                          £1,172m      £1,146m    +2%
 Of which private forward sales         £680m        £653m      +4%
 Average sales outlets                  271          261        +4%
 Cash at 31 December                    c.£116m      £259m      £(143)m

( )

 

Trading

The Group performed well in 2025. Total completions were up 12% to 11,905
homes (2024: 10,664), ahead of market expectations, reflecting the benefits
of our expanding outlet base and broad geographic coverage. This was achieved
whilst maintaining our focus on quality standards, and we were pleased to
retain our HBF five-star rating for the fourth consecutive year. Private home
completions were up 8% to 9,830 (2024: 9,075) with 2,075 partnership homes
delivered in the period (2024: 1,589).

 

The Group's private average selling price was up 5% on the prior year at
c.£301,000 (2024: £287,162), with incentives stable at c.4-5%. Our
partnerships average selling price increased by 4% to c.£168,000
(2024: £161,916). Taken together, this resulted in a 4% increase in the
blended average selling price to c.£278,000 (2024: £268,499).

 

Our net sales rate per outlet per week excluding bulk sales was up 4% to 0.59
(2024: 0.57). Including bulk sales our net private sales rate per outlet per
week was in line with the prior year at 0.70 (2024: 0.70), with some
softening seen in the Build to Rent market in Q4 ahead of the Budget.

Our strategic investment in land and planning in recent years enabled us to
open c.100 new outlets during the year, ending the year with 277 open outlets,
a 3% increase from the beginning of the year (2024: 270 outlets). We operated
from an average of 271 outlets during the year (2024: 261).

We expect full-year underlying profit before tax for 2025 to be at the upper
end of market expectations. As outlined previously, the underlying housing
operating margin is expected to be towards the lower end of the guided range
(14.2% to 14.5%).

The value of our forward sales position increased 2% to £1.17bn (2024:
£1.15bn) even as we achieved double digit growth in completions. Within this,
£680m relates to private forward sales (2024: £653m), up 4%. This reflects
good growth in private sales to owner occupiers, partly offset by a reduction
in bulk sales within the order book as a result of the softening in demand
seen in Q4. The private average selling price in the order book was
c.£293,400, up 6% on the position at the same point last year
(2024: £276,857).

 

Balance sheet and land investment

 

Gross land spend was c.£560m during the year (2024: £465m) of which c.£195m
was the settlement of land creditors (2024: £211m). Our owned and under
control land holdings stood at c.84,750 plots at 31 December 2025 (31 December
2024: 82,084 plots).

 

Alongside land investment and an increase in our strategic land capabilities,
we continue to have a good level of planning approvals success. We achieved
detailed or reserved matters planning on c.12,800 plots (2024: 13,064),
equivalent to 108% of 2025 completions, supporting our plans for continued
growth.

 

We ended the year with net cash of c.£116m, in line with guidance, having
returned £192m to shareholders. We are progressing our building safety
remediation programme, having spent c.£60m during the year. We anticipate
recognising some additional costs in the year, net of recoveries that have
been agreed with third parties. These net additional costs are expected to be
lower than the amount spent in 2025 and therefore we expect the net balance
sheet provision at 31 December 2025 to have reduced compared to 31 December
2024 (£235m).

 

Outlook

 

Persimmon performed well during 2025, in a challenging market. The investment
made in the business over recent years and our self-help strategy has
positioned us well. We continue to develop an excellent pipeline of land
opportunities that will underpin continued outlet and volume growth in the
coming years.

 

We entered 2026 with a robust order book. While we are not expecting any
material improvement in market conditions this year, early indications from
our Boxing Day marketing campaign are encouraging. Recent reductions in
mortgage rates are helpful for our private customers although we remain
mindful of continued affordability constraints. In addition, fewer bulk sales
in the order book, and continued challenges in the registered provider market,
are likely to slow our growth in these markets in 2026.

 

At this stage, we expect underlying build cost inflation to be similar to 2025
and we remain in a strong position to manage costs given our unique level of
vertical integration. We are conscious of additional regulatory costs, and we
will continue to look to mitigate these where possible. For example, landfill
tax charges will double from April 2026 with further annual increases
thereafter. We welcome government changes to the planning system, although
these will take time to fully take effect. Assuming trading conditions remain
stable, we are on track to achieve current market expectations for 2026(2).

 

(1)Company compiled full year 2025 underlying profit before tax consensus of
£428m (range of £415m to £440m) as at 9 January 2026.

(2)Company compiled full year 2026 consensus of 12,043 homes and underlying
profit before tax range of £461m to £487m as at 9 January 2026.

 

Persimmon will host a conference call with analysts at 09.00am today.

All participants must pre-register to join this conference using the
Participant Registration link. Once registered, an email will be sent with
important details for this conference, as well as a unique Registrant ID.

 

Participant registration page:
https://register-conf.media-server.com/register/BI60bea85e115e41de8a828b3d692256c8
(https://register-conf.media-server.com/register/BI60bea85e115e41de8a828b3d692256c8)

 

 

For further information please contact:

 Victoria Prior, Group IR Director            Giles Kernick, Teneo

 Anthony Vigor, Group Director of Strategic

 Partnerships and External Affairs

 Persimmon Plc                                persimmon@teneo.com
 Tel: +44 (0) 1904 642199                     Tel: +44 (0) 207 427 5454

 

Appendices:

 

                      31 December 2025      31 December 2024      Change
 Forward sales        Value      Homes      Value      Homes      Value  Homes
 Private              £680m      2,318      £653m      2,360      +4%    (2)%
 Housing Association  £492m      3,077      £493m      3,110      -      (1)%
 Total                £1,172m    5,395      £1,146m    5,470      +2%    (1)%

 

Cautionary statements

Some of the information in this document may contain projections or other
forward-looking statements regarding future events or the future financial
performance of Persimmon Plc and its subsidiaries (the Group). You can
identify forward-looking statements by the terms such as "expect", "believe",
"anticipate", "estimate", "intend", "will", "could", "may" or "might", the
negative of such terms or similar expressions. Persimmon Plc (the Company)
wishes to caution you that these statements are only predictions and that
actual events or results may differ materially and as such undue reliance
should not be placed on these statements. The Company does not intend to
update these statements to reflect events and circumstances occurring after
the date hereof or to reflect the occurrence of unanticipated events. Many
factors could cause the actual results to differ materially from those
contained in projections or forward-looking statements of the Group, including
among others, general economic conditions, the competitive environment as well
as many other risks specifically related to the Group and its operations. Past
performance of the Group cannot be relied on as a guide to future performance.

 

Please see the most recent Annual Report and Accounts of Persimmon plc and
other disclosures through the Regulatory News Service ("RNS") for further
details of risks, uncertainties and other factors relevant to the business and
its securities.

 

The information in this trading statement is unaudited.

 

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