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Persimmon PLC on Tuesday said it expects full-year profit to be at the top end of expectations after selling more homes than forecast but cautioned it does not expect a ‘material improvement’ in market conditions this year. The York, England-based housebuilding company said total completions were up 12% in 2025 to 11,905 homes from 10,664 the year prior, ahead of market expectations, reflecting the benefits of an expanding outlet base and broad geographic coverage. As a result, the FTSE 100 listing expects 2025 underlying pretax profit at the upper end of £415 million to £440 million market expectations, and ahead of £395.1 million in 2024. But the underlying housing operating margin is expected to be towards the lower end of the guided range of 14.2% to 14.5%. In November, Persimmon said it was on track to deliver a 2025 performance in line with market expectations of 11,293 homes and underlying profit before tax of £429 million. ‘Persimmon has performed well during 2025, in a challenging market,’ said Chief Executive Dean Finch. In response, shares in Persimmon were down 0.1% to 1,413.50 pence each in London on Tuesday morning. Private average selling prices rose 4.8% in 2025 to £301,000 from £287,162 the year prior, with partnership average selling prices up 3.8% to £168,000 from £161,916. Net sales rate per outlet per week excluding bulk sales rose 3.5% to 0.59 from 0.57 a year ago. Including bulk sales net private sales rate per outlet per week was in line with the prior year at 0.70, with some softening seen in the build to rent market in the quarter ahead of the budget. Looking ahead, Persimmon said: ‘While we are not expecting any material improvement in market conditions this year, early indications from our Boxing Day marketing campaign are encouraging.’ The builder said 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.’ Persimmon expects underlying build cost inflation to be similar to 2025 and will look to mitigate additional regulatory costs where possible. ‘Assuming trading conditions remain stable, we are on track to achieve current market expectations for 2026,’ Persimmon said. Company compiled consensus looks for home completions of 12,043 homes in 2026 and underlying pretax profit of £461 million to £487 million. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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