31 July 2026
If you are covering Taylor Wimpey's latest financial results, please find below a comment from Oli Creasey, head of property research at Quilter Cheviot:
"Taylor Wimpey's first half results show a company still struggling to make headway in a challenging market. Completion rates have fallen by around 5% year-on-year, although a change in the mix and regional balance means that sold prices have actually gone up by 6.7%, which combined means that revenues are up marginally year-on-year.
"However, the underlying pricing of homes is approximately 2% below prior years, and cost increases mean that profit has fallen 20% compared to the same six months last year and the operating profit margin is now down at just 7.7%. While these results are well below long-term averages, they are ahead of consensus estimates, with the profit lines approximately 20% ahead of expectations despite the heavy fall. Clearly investors were expecting an even worse outcome.
"While this beat is likely to be a boost to share price momentum, it may prove short-lived. Management has made a slight cut to the full year guidance around completions, now pointing to the lower half of the previously suggested range, largely to reflect the first half results we think.
"More crucial for investors however, will be the news that the distribution policy is being changed, with the company now planning to return 4% of net asset value to shareholders each year, a substantial cut compared to the 7.5% previously targeted. Taylor Wimpey has stood out from peers in recent times with a dividend yield well in excess of any other UK housebuilders, and was a key attraction for shareholders. Almost halving that yield today is likely to be a key factor in share price underperformance, despite today's results being better than expected."
