Persimmon (LSE:PSN) reported a resilient performance in 2025 against a backdrop of difficult housing market conditions, delivering a 12% increase in home completions to 11,905. Underlying profit before tax is expected to come in at the upper end of market expectations, supported by a larger sales outlet base and the group’s broad geographic exposure.
Average selling prices rose 4% to around £278,000 during the year, while forward sales increased 2% to £1.17bn despite the strong uplift in completions. Persimmon ended the period with net cash of approximately £116m, having stepped up investment in land acquisition and continued progress on building safety remediation programmes.
Looking ahead, management said the group remains well positioned to deliver further outlet expansion and volume growth. However, it highlighted ongoing headwinds, including affordability pressures for buyers, softer demand from bulk and registered provider customers, and higher regulatory and compliance-related costs expected in 2026.
Overall, Persimmon’s outlook is supported by a strong balance sheet, solid operational execution and positive technical signals, alongside supportive corporate developments. These strengths are balanced against the need to improve cash flow efficiency and navigate valuation considerations in a market that remains sensitive to interest rates and affordability.
More about Persimmon
Persimmon is one of the UK’s largest housebuilders, specialising in the development and sale of private and partnership homes across a wide geographic footprint. The group focuses on delivering high-volume, relatively affordable and sustainable housing, supported by a large network of sales outlets, extensive owned and controlled land holdings, and a high degree of vertical integration across its supply chain.
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