15th Jan 2026 09:44
(Alliance News) - Taylor Wimpey PLC on Thursday reported a "robust" end to 2025 but cautioned operating profit margin is likely to be lower in 2026 than in 2025 given a lower opening order book.
In response, shares in the Buckinghamshire, England-based housebuilder fell 1.0% to 102.85 pence each in London on Thursday morning. Earlier, they had traded as low as 98.22p.
Taylor Wimpey said full-year 2025 revenue rose 12% to GBP3.8 billion from GBP3.4 billion in 2024, driven by higher volumes, average selling prices and land sales.
The firm expects to deliver full-year operating profit of GBP420 million, up 0.9% from GBP416.2 million the year prior, and an operating profit margin of around 11%, down from 12.2% in 2024.
Home completions including joint ventures were 11,229 in 2025, up 6.0% from 10,593 in 2024.
UK home completions, excluding joint ventures, increased 6.4% to 10,614 in 2025 from 9,972 in 2024, at the mid-point of guidance for 10,400 to 10,800 homes.
"We delivered a robust performance during 2025 in the context of challenging market conditions," said Chief Executive Jennie Daly.
The UK net private reservation rate for 2025 was 0.75 homes per outlet per week, unchanged from the year prior. Excluding the impact of bulk deals, the net private sales rate was 0.65, down from 0.67 in 2024. The full year cancellation rate was unchanged year-on-year at 15%.
UK average selling price on private completions rose 5.1% to GBP374,000 in 2025 from GBP356,000 in 2024 and the firm ended the year with an order book valued at GBP1.86 billion, down 7.0% from GBP2.00 billion the year before.
Taylor Wimpey said uncertainty ahead of the autumn budget impacted sales through the second half of 2025 and the order book coming into 2026.
Private underlying sales prices have remained resilient, while pricing on bulk deals contracted in the second half of the year was softer, with overall pricing in the order book around 0.5% lower year on year, the firm said.
In addition, the company continues to experience low single-digit build cost inflation.
"Taking these factors into account, we expect group operating profit margin to be lower in 2026 than in 2025 and, given the lower opening order book, for performance to be more second half weighted in 2026 than in prior years," Taylor Wimpey said.
More positively, the firm said it is experiencing a "good level" of enquiries consistent with last year although it is "too early" to predict the outcome of the spring selling season.
"We remain focused on driving outlet openings to support our growth and expect average outlets to increase year on year," it added.
The company also anticipate further progress with the UK Planning and Infrastructure Act now in place, "streamlining decision making and facilitating the delivery of planning consents."
"The government's planning reforms have been welcome, and we've seen increased momentum in our recent planning permissions. However, while affordability is slowly improving, demand continues to be muted - particularly among the important first time buyer category - which will constrain overall sector output," CEO Daly said.
By Jeremy Cutler, Alliance News reporter
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