Persimmon Plc delivered a strong FY2025 with underlying EPS of 100.7p (up 9% YoY) and total group revenue of £3.75 billion (up 17%). Shares surged over 11% on 10 March 2026 following forecast-beating results and an optimistic 2026 outlook projecting 12,000 to 12,500 completions, though the Iran conflict remains a wildcard for customer sentiment.
About Persimmon Plc
Persimmon Plc (LSE: PSN) is one of the United Kingdom’s largest residential housebuilders, founded in 1972 by Duncan Davidson and headquartered in York, England. The company is a constituent of the FTSE 100 Index and operates through three distinct brands: Persimmon Homes (family housing), Charles Church (premium housing), and Westbury Partnerships (social and institutional housing). Persimmon differentiates itself from peers through its vertically integrated model, manufacturing its own bricks (Brickworks), roof tiles (Tileworks), and timber frames (Space4), which helps insulate the company from external cost inflation.
As of 11 March 2026, Persimmon has a market capitalization of approximately £4.10 billion, with 320.59 million shares outstanding. The trailing P/E ratio stands at 14.50, with a forward P/E of 12.31. The company offers a dividend yield of 4.90% and employs approximately 4,731 people. Persimmon’s average selling price is approximately 19% below the UK new-build national average, positioning it strongly in the affordable end of the market.
Top Financial Highlights
- Total Group revenue increased 17% to £3.75 billion (FY2024: £3.20 billion).
- New housing revenue grew 16% to £3.31 billion (FY2024: £2.86 billion).
- Underlying profit before tax rose 13% to £445.6 million (FY2024: £395.1 million), surpassing market expectations of approximately £440 million.
- Statutory profit before tax increased 11% to £397.3 million (FY2024: £359.1 million).
- Underlying operating profit surged 17% to £472.1 million (FY2024: £405.2 million).
- Underlying operating margin improved 20 basis points to 14.3% (FY2024: 14.1%).
- Underlying basic earnings per share (EPS) rose 9% to 100.7p (FY2024: 92.1p). Reported basic EPS was 89.3p (FY2024: 83.6p).
- Underlying gross profit grew 13% to £656.3 million (FY2024: £582.4 million), with gross margin at 19.8% (FY2024: 20.3%).
- Cash generated from operations was £487.9 million, up 16% year-over-year.
- New home completions climbed 12% to 11,905 homes (FY2024: 10,664).
- Average selling price increased 4% to £278,203 (FY2024: £268,499).
- Net cash at 31 December stood at £117.0 million (FY2024: £258.6 million), with higher investment in land and working capital driving the decline.
- Dividend per share maintained at 60p (interim 20p + final 40p).
- Private forward sales position as at 1 March 2026 rose 9% to £1.25 billion.
- 2026 guidance: 12,000 to 12,500 completions, with underlying operating profit towards the upper end of consensus (£486 million to £517 million range).
Beat or Miss?
Persimmon’s FY2025 results exceeded analyst expectations across key metrics. Underlying pre-tax profit came in at £445.6 million versus the consensus expectation of approximately £440 million. The company’s forward guidance for 2026 also pointed to the upper end of consensus expectations, giving further confidence.
| Metric | Reported (FY2025) | Estimated/Consensus | Difference |
| Total Group Revenue | £3.75 billion | N/A | N/A |
| Underlying Profit Before Tax | £445.6 million | ~£440 million | Beat by ~£5.6 million |
| Underlying Operating Profit | £472.1 million | N/A | N/A |
| Underlying EPS | 100.7p | N/A | N/A |
| Completions | 11,905 | N/A | +12% YoY |
| 2026 Guidance (Underlying Operating Profit) | Upper end of consensus | £486m – £517m range | Positive signal |
| 2026 Guidance (Underlying PBT) | In line with consensus | Mean ~£470m | In line |
What Leadership Is Saying?
CEO Dean Finch on strategy and growth vision:
“Persimmon delivered a strong performance for 2025, with completions growing 12% and underlying profit before tax increasing 13%. This reflects our sustained investment in the business and our commitment to self-help, enabling us to grow in a challenging market. I want to thank all my colleagues for their dedication and expertise in delivering this result; I am proud to work alongside them.”
“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. Whilst we have good visibility of both our costs for 2026 and our demand from registered providers and BTR, 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.”
CFO Andrew Duxbury on financial performance and margins:
“Gross profit up 13% to £656 million. Underlying operating profit increased 17% to £472 million. I’m particularly pleased to say that’s a 200 basis point increase in margin to 14.3%. This demonstrates our overhead control and efficiency and why we are so focused on volume growth as one lever to deliver increasing margins. Underlying PBT is up 13%, and that’s after an increase in interest costs because of lower cash balances and higher land creditors. Overall, this is strong quality earnings growth driven by our strategy.”
“Overall, I’m comfortable with how the range of 2026 PBT sits currently. The key message is that we will be delivering further PBT growth in 2026 on top of the 24% growth that we’ve already delivered in the last 2 years.”
Historical Performance
The table below compares Persimmon’s key financial metrics for FY2025 versus FY2024.
| Category | FY2025 | FY2024 | Change (%) |
| Total Group Revenue | £3.75 billion | £3.20 billion | +17% |
| New Housing Revenue | £3.31 billion | £2.86 billion | +16% |
| Underlying Operating Profit | £472.1 million | £405.2 million | +17% |
| Underlying Profit Before Tax | £445.6 million | £395.1 million | +13% |
| Statutory Profit Before Tax | £397.3 million | £359.1 million | +11% |
| Underlying EPS | 100.7p | 92.1p | +9% |
| Underlying Operating Margin | 14.30% | 14.10% | +20 bps |
| Underlying Gross Profit | £656.3 million | £582.4 million | +13% |
| Cash from Operations | £487.9 million | ~£420 million | +16% |
| New Home Completions | 11,905 | 10,664 | +12% |
| Average Selling Price | £278,203 | £268,499 | +4% |
| Cash at 31 December | £117.0 million | £258.6 million | -55% |
| Dividend Per Share | 60p | 60p | 0% |
Competitor Comparison (UK Housebuilders FY2025)
The UK housebuilding sector saw broad-based recovery in FY2025, with all major players reporting double-digit revenue growth. However, profitability varied significantly. Note that Barratt Redrow and Bellway have different fiscal year-ends (June and July respectively), so their figures cover slightly different periods.
| Metric | Persimmon (FY Dec 2025) | Taylor Wimpey (FY Dec 2025) | Barratt Redrow (FY June 2025) | Bellway (FY July 2025) |
| Revenue | £3.75bn | £3.84bn | £5.58bn | £2.78bn |
| Revenue Change YoY | +17% | +13% | +33.8% | +16.9% |
| Underlying/Adjusted Operating Profit | £472.1m | £420.6m | £488.3m (adj. PBT) | £303.5m |
| Operating Margin | 14.3% | 10.9% | 15.7% (adj. gross) | 10.9% |
| Completions | 11,905 | ~11,108 | 16,565 | 8,749 |
| Completions Change YoY | +12% | +6% | +18.3% | +14.3% |
| EPS (Underlying/Adjusted) | 100.7p | 8.0p | 13.6p (statutory) | 176.7p |
| Dividend Per Share | 60p | 7.62p | 17.6p | 70p |
| Net Cash | £117m | £343m | £773m | £42m |
Persimmon leads the peer group on operating margin at 14.3%, a direct benefit of its vertically integrated manufacturing capabilities. Taylor Wimpey delivered solid volume growth but saw margin pressure, with operating margin declining from 12.2% to 10.9% and profit before tax guidance for 2026 falling to around £400 million.
Barratt Redrow’s revenue surge reflects the Redrow acquisition completed in August 2024, making direct comparison less straightforward. Bellway posted the strongest underlying EPS growth at 30.7% and announced a £150 million share buyback program.
How the Market Reacted?
Persimmon’s shares surged over 11% on 10 March 2026, the day the full-year results were released, marking the stock’s best single-day performance since April 2020. The rally was fueled by a double boost: forecast-beating FY2025 numbers and signs that the conflict in the Middle East may be easing, with President Trump stating the “war is pretty much complete.”
Analyst Anthony Codling of RBC Capital Markets stated the results reinforce his belief that “Persimmon is executing the right strategies at the right time and in the right locations, outperforming its rivals.” Despite the strong rally, the stock remains down approximately 29% over the past 12 months and 3% year-to-date as of 11 March 2026, reflecting the broader sector headwinds from elevated interest rates and geopolitical uncertainty.
