Taylor Wimpey (LSE:TW.) said on Thursday that it expects operating margins to face further pressure in 2026, citing a weaker opening order book and softer pricing on bulk home sales.
For 2025, the UK housebuilder now forecasts group operating profit of around £420 million, slightly below its previous guidance of £424 million. The operating margin is expected to decline to about 11%, down from 12.2% in 2024.
The company said that land disposals, supported by good progress on planning and consistent with its long-term strategy, delivered an estimated 60 basis point uplift to the group operating margin in 2025. However, this benefit is not expected to repeat in 2026, removing a key support to profitability.
Home completions for the year reached 11,229, compared with 10,593 in the prior year. Excluding joint ventures, completions totalled 10,614, placing output in the middle of management’s guidance range and ahead of the 9,972 homes delivered in 2024. The average selling price also rose year on year, increasing to £335,000 from £319,000.
Taylor Wimpey said housing demand has yet to show a broad-based recovery following a pre-budget slowdown, with uncertainty around property taxation, regulation and mortgage rates continuing to weigh on buyer confidence. Like other UK housebuilders, the group has been operating in a challenging environment characterised by lower margins and one-off costs.
Commenting on the outlook, Jennie Daly said: “The government’s planning reforms have been welcomed, and we’ve seen increased momentum in our recent planning permissions. However, while affordability is slowly improving, demand continues to be muted – particularly among the important first-time buyer category – which will constrain overall sector output.”
Despite the pressures, full-year revenue rose to approximately £3.8 billion, up from £3.4 billion in 2024, supported by higher completion volumes, improved average selling prices and land sales. Net finance costs for the year are expected to be around £30 million.
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