15 January 2026
If you are covering Taylor Wimpey’s latest trading statement, please find comments below from Oli Creasey, head of property research at Quilter Cheviot:
“Taylor Wimpey’s FY25 trading statement shows steady year‑on‑year progress with number broadly in line with consensus expectations. Completions rose by 6%, landing in the middle of management guidance and around 1% ahead of sell‑side expectations. The average selling price increased by 5% versus 2024, an outcome that compares favourably with the major national house price indices.
“While the top line for 2025 appears solid, profitability is under pressure. The operating margin is expected to fall to 11% (2024: 12.2%), despite a 0.6% benefit from land sales. More concerning is the outlook for 2026. Management noted that the autumn budget dampened sales activity in H225 and has weighed on the order book, which is down 7% year‑on‑year in both value and volume. Although enquiry levels are consistent with last year, the company believes it is too early to gauge the strength of the spring selling season.
“What is clearer is that pricing on the existing order book is relatively soft, down 0.5% year‑on‑year. Combined with low single‑digit cost inflation and an expected reduction in land sale profits compared to 2025, management anticipates a further decline in operating margin in 2026. They also expect sales to be more heavily weighted towards the second half than in previous years.
“The margin commentary is likely to be the key focus for investors. While the decline in 2025 was expected, the sell side had consensus was for some degree of margin recovery in 2026. Guidance for a further deterioration instead will not be what the market was hoping to see.”
