UK homebuilder Persimmon defies rivals with strong 2026 profit, home sales outlook (updated)
10/03/2026 07:45
Persimmon forecasts higher profits and home deliveries for 2026 vertical integration shields from cost inflation Persimmon beats 2025 profit expectations Shares rise over 11% Adds shares, details on forecast, analyst comment and results throughout By Raechel Thankam Job March 10 (Reuters) - British homebuilder Persimmon PSN.L bucked the sector trend on Tuesday, forecasting more home deliveries and profits at the top end of market estimates in 2026 as sales recover, sending shares 11% higher. The builder expects underlying operating profit near the upper end of analyst consensus of 486 million to 517 million pounds ($593-$630 million), contrasting with rivals Taylor Wimpey TW.L and Vistry VTYV.L which have recently warned of margin pressure and weaker demand. The outlook, however, is based on an assumption that the fallout from the war in the Middle East can be contained. "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," CEO Dean Finch said in a statement. Sales in the opening weeks of the year have been strong and the build-to-rent market is recovering from the slowdown seen in November, Finch said. Persimmon also reported underlying pre-tax profit of 445.6 million pounds for the year ended December 2025, ahead of market expectations, and its shares were on track for their best day since April 2020, if gains hold. ALL THE RIGHT THINGS Persimmon has weathered cost pressures better than rivals because it makes its own bricks, tiles and timber frames, shielding it from cost inflation squeezing its competitors. RBC Capital Markets analyst Anthony Codling said the 2025 results and the beginning of this year confirmed their view "that Persimmon is doing the right things at the right time in the right places, and is performing ahead of its peers." The company expects to deliver between 12,000 and 12,500 homes in 2026, while also leaning on marketing and incentives that helped it outperform sales expectations in 2025. "The potential impact of current uncertainty on build cost inflation is not yet known, but we anticipate limited impact this year due to existing supplier agreements and accelerated production levels coming into 2026," Finch said. (Reporting by Raechel Thankam Job in Bengaluru; Editing by Sherry Jacob-Phillips and Tomasz Janowski) ((RaechelThankam.Job@thomsonreuters.com;))