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Investing.com -- Persimmon (LON:PSN) on Wednesday posted a first-half 2025 underlying operating margin of 13.1%, topping Jefferies’ estimate of 12.3%, as completions and cash levels matched forecasts.
The U.K. homebuilder delivered 4,605 homes, in line with guidance for a second-half weighted year, and reported cash of £123 million. Return on capital employed was 11.2%, which Jefferies described as sector-leading.
The company maintained full-year 2025 guidance for completions of 11,000 to 11,500 homes, compared with Jefferies’ forecast of 11,553, and projected an underlying operating margin of 14.2% to 14.5%.
The private average selling price rose 7% year over year to £284,000, ahead of Jefferies’ full-year forecast of £276,000.
Persimmon said it had assessed all buildings for safety, with work started or completed on more than 80%. Most of the related cash outflows are expected within two years.
For 2026, the company forecast 12,000 completions, below Jefferies’ estimate of 12,700, and said operating profit margin is expected to increase by 10 to 40 basis points from 2025 levels.
More than half of 2026 completions are expected from sites affected by earlier build cost inflation.
Net private sales excluding bulk transactions rose 5% to 0.62, compared with 0.64 at the last update.
The total sales rate was 0.70, down from 0.74. Outlets increased 4% to 277, with a target of at least 300.
Land intake was 110% of completions, and land with detailed planning permission rose 7% from a year earlier.
The private forward order book grew 11%, down from 17% previously, with the average selling price in the order book up 1.2% to £292,000.