Vistry Delivers Profit Growth and Margin Improvement as Partnerships Strategy Targets £39bn Affordable Housing Opportunity

Vistry Group (LSE:VTY) reported resilient trading for the full year 2025, with adjusted profit before tax expected to rise modestly to around £270 million on broadly flat revenue of approximately £4.2 billion. Performance came despite a softer private housing market and a 9% decline in total completions to about 15,700 homes.

Operating margin improved to 8.4%, supported by a higher mix of margin-accretive developments, continued cost discipline and greater use of off-site timber frame construction. Net debt reduced to roughly £145 million over the year, even as the group increased land investment, securing 12,600 plots and strengthening its medium-term development pipeline.

Vistry’s partnerships-led model continues to underpin its strategy, with around 74% of volumes funded by partners. The group highlighted its positioning to benefit from the UK’s forthcoming £39 billion, 10-year Social and Affordable Homes Programme, supported by a £50 million grant award from Homes England and a £4 billion forward order book. Management also pointed to improving funding visibility and potential planning reforms as supportive factors heading into 2026.

Looking ahead, Vistry said it remains confident in delivering further financial and strategic progress in 2026, although performance is again expected to be weighted towards the second half of the year as affordable housing allocations ramp up. The group also noted that open market conditions could improve should interest rates begin to ease.

From an investment perspective, recent corporate actions such as share buybacks provide a positive backdrop. However, the overall outlook remains balanced by mixed financial signals, valuation concerns linked to negative earnings metrics, and technical indicators suggesting stability but warranting caution.

More about Vistry Group

Vistry Group is a UK-based housebuilder and residential developer focused on affordable and mixed-tenure housing. The group works in partnership with housing associations, local authorities and private rental sector operators, combining partner-funded developments with open market sales and using off-site construction and a capital-light land strategy to support margins in a challenging housing environment.