13 August 2025
If you are covering Persimmon's latest results, please see the following comment from Oli Creasey, head of property research at Quilter Cheviot:
Persimmon’s Hy results should be reassuring for investors, as key metrics are generally moving in the right direction. The company’s revenues are up 12% year-on-year, driven by 4% volume growth, but also an 8% increase in the average sale price. This increase is partly due to a change in mix, with the company’s relatively more expensive Charles Church brand selling more houses this year, but also reflects the relative health of the housing market in London and the South-East compared to the rest of the country, with Persimmon generally not participating in the more expensive regions.
Operating profit grew similarly, with the operating margin stable at 13% (same as H1’24). Management have reiterated guidance for FY’25 – volumes between 11,000-11,500, and an operating margin between 14.2-14.5%, both of which imply further progress in H2. However, with the forward order book at almost £2bn, the majority of the sales for H2’25 are already agreed in principle, and management’s visibility on these metrics ought to be strong. Persimmon’s preliminary figures for the second half of 2025 so far shows continued progression, with volumes up 11% year-on-year.
Notably, Persimmon have opted to provide early guidance for 2026, something that the company hasn’t done before (at least not recently). Expectations are for further volume growth to 12,000 completions (c. 6%) and for “operating margin progression similar to 2025”, suggesting another incremental increase in profitability. The company acknowledges the ongoing challenges faced by the sector (build cost inflation, affordability, etc), but believes that with a stable housing market it can continue to make progress.
Persimmon is also ahead of peers when it comes to fire safety assessments, having already reviewed 80% of the properties it may be responsible for (compared to under 50% industry average).
