Persimmon (LSE:PSN) delivered a solid opening to 2026, with net private sales per outlet per week showing modest improvement and private forward sales increasing 7% to £1.80 billion. The growth was supported by a 5% rise in average selling prices and a disciplined approach to incentives.
Total forward sales reached £2.46 billion, while the number of active outlets, land holdings, and planning approvals all increased. These trends support Persimmon’s goal of expanding to at least 300 active outlets over time.
Resilient trading despite macroeconomic pressures
Management said trading conditions remain stable despite geopolitical tensions and broader economic uncertainty. The company noted only a slight softening in customer enquiries, alongside early indications of rising supply chain costs, which are expected to become more pronounced into 2027.
In response, Persimmon is tightening its land acquisition strategy and maintaining strict cost controls. Its diversified three-brand model, combined with strong partnerships and a substantial forward order book, is expected to support consistent delivery volumes and reinforce its position in the UK housing market.
Cash flow and technical weakness weigh on outlook
While the company benefits from a strong balance sheet with low leverage, its outlook is constrained by weaker cash flow generation, including negative free cash flow in 2025, and reduced profitability compared with previous peak years.
Technical indicators also point to a softer trend, with the stock trading below key moving averages and showing negative momentum. However, valuation provides some support, with a moderate price-to-earnings ratio and a dividend yield of around 4.7%.
More about Persimmon
Persimmon is a UK-based housebuilder operating through three brands and a vertically integrated business model. The company focuses on private housing, affordable homes, and build-to-rent developments, leveraging a large land bank and in-house capabilities to deliver residential projects at scale while targeting improved margins and long-term shareholder returns.
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