Persimmon reports higher first-half earnings as home completions continue to grow

Persimmon (LSE:PSN) delivered a strong first-half performance, increasing home completions by 13% to 5,189 while new housing revenue also rose 13% to £1.48 billion. Underlying operating profit climbed 10% to £189.1 million despite a modest reduction in operating margin. Management attributed the performance to gains in market share, stronger brand positioning and the benefits of greater vertical integration, although affordability pressures and higher construction costs continue to present challenges across the UK housing market.

The housebuilder now expects to complete around 12,500 homes during 2026, placing delivery at the upper end of its previous guidance range. Profit expectations remain in line with market forecasts, supported by a 5% increase in the private forward order book to £1.31 billion. Looking ahead, Persimmon plans to expand its cost-efficiency initiatives and maintain a disciplined approach to land investment in preparation for anticipated build cost inflation in 2027. Over the medium term, the company aims to increase housing volumes, strengthen cash generation and deliver sustainable shareholder returns while maintaining a robust balance sheet and meeting its building safety and remediation commitments.

The investment outlook remains mixed. Although Persimmon benefits from a strong balance sheet with low levels of debt, recent cash flow performance has weakened and profitability remains below the peak levels achieved in previous years. Technical indicators also remain subdued, with the shares trading below key moving averages and negative momentum signals. However, a reasonable valuation and a dividend yield of around 4.7% continue to provide support for the investment case.

About Persimmon

Persimmon is one of the UK’s largest residential property developers, building homes through its Persimmon Homes, Charles Church and Westbury Partnerships brands. The company develops both private and affordable housing across the UK, supported by a nationwide land portfolio and a vertically integrated operating model.

By combining efficient construction processes with disciplined land acquisition and broad geographic coverage, Persimmon aims to deliver high-quality homes while generating sustainable long-term returns in the UK’s structurally undersupplied housing market.