Taylor Wimpey (LSE:TW.) confirmed its dividend policy and reiterated its 2025 guidance during its capital markets day on Wednesday, highlighting medium-term objectives such as higher completions, improved margins, and enhanced returns.
RBC Capital Markets emphasized the importance of the dividend confirmation. “The key takeaway for us is that the dividend policy has been maintained, hopefully putting the dividend debate to rest,” the brokerage said.
RBC added, “Taylor Wimpey is demonstrating that it has a resilient model in a moribund market and is ready for growth when the market allows.”
The company set a near-term target of 14,000 U.K. completions, above the consensus peak forecast of 13,095 by 2030. Projected operating profit margins are between 16% and 18%, exceeding the 17.1% consensus estimate. The group’s return on net operating assets is expected to surpass 20%, compared with a 21.1% consensus by 2030.
Taylor Wimpey stated its U.K. landbank will be between 4.5 and 5 years, noting that recent planning framework changes enable a shorter landbank. As of H1 2025, the company reported a 6.9-year owned and controlled forward landbank. The capital allocation policy was also reaffirmed.
For 2025, the housebuilder reiterated its operating profit guidance of £424 million, close to the consensus of £426 million. Completion guidance remains at 10,400–10,800 homes, near the consensus of 10,555. Year-end outlets are expected between 210 and 215, versus a consensus of 211, with average outlets projected to increase year on year as capital is redeployed.
In trading for the nine weeks ending September 28, the net private sales rate was 0.65 per outlet per week, down 7.1% from the prior period. Excluding bulk deals, the rate fell 5.9%, compared with a 13% year-on-year decline for the four weeks ending July 27, excluding bulks.
The order book as of September 28 stood at £2,123 million, down 1% in value and 6% in volume compared with the previous year. Forward order book pricing implied a 5% increase year on year. As of June 29, the order book was down 2% in volume and up 5% in value, with pricing remaining broadly flat in recent trading.
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