Image source: © 2025 Krish Capital Pty. Ltd.

Highlights:

  • Private completions rose 7% to 3,987 homes in recent half eneded 30 June 2025, with total completions up 4% to 4,605.

  • Underlying operating profit increased 13%, driven by higher volumes and operational discipline.

  • The private forward order book rose 11% to GBP 1.25 billion at an average sales price of approximately GBP 292,800.

Persimmon Plc (LSE:PSN) has released its half-year results for the six months ended 30 June 2025, reporting increases in completions, operating profit, and sales rates, alongside progress in land acquisition and building safety.

Half-Year Performance

Private completions reached 3,987 homes during the first half of 2025, marking a 7% increase compared with the previous year, while total completions rose 4% to 4,605. The company remains on track to deliver between 11,000 and 11,500 completions for the full year. Underlying operating profit grew 13%, supported by increased output and ongoing operational discipline, with full-year guidance unchanged.

Net private sales rates excluding bulk sales improved by 5% to 0.62 from 0.59 in the prior year. The total net private sales rate was 0.70 per outlet per week, compared with 0.71 in 2024, equating to 191 sales per week — a 3% increase on the prior period. The average private sales price on completions rose 7%, reflecting a higher proportion of Charles Church properties and firm pricing.

The company launched its New Build Boost shared equity offering during the period and maintained its five-star customer satisfaction rating for the fourth consecutive year, achieving its highest Trustpilot score, rated “Excellent.” In total, 5,066 plots achieved detailed planning consent, equivalent to 110% of completions, aided by the group’s enhanced planning approach.

Growth and Investment

Persimmon increased its outlets by 4% to 277 by the end of June 2025 and remains on track to reach at least 300 outlets. The business invested GBP 210 million in land acquisitions during the first half, with a strategic land pipeline to support future growth. In building safety, all properties have been assessed and works have started or been completed on over 80% of affected buildings, compared with an industry average of 48%. The company aims to be on-site at all known developments by year-end.

Current Trading and Outlook

In the five weeks following the period end, net private sales rates excluding bulk were 0.61, compared with 0.55 for the same period in 2024. Including bulk, the rates were 0.68 and 0.69 respectively. Weekly sales averaged 188 compared to 183 a year earlier. The current private forward order book stands at GBP 1.25 billion, up 11% year-on-year, with a private average sales price of approximately GBP 292,800, an increase of 1.3%. Including Partnerships, the total forward order book is GBP 1.86 billion, up 9%.

Persimmon is approximately 80% secured on private completions and fully secured on Partnerships completions for 2025. Looking ahead, the company expects volumes to grow to around 12,000 units in 2026, with operating margin progression similar to 2025, while noting that affordability constraints, reduced build cost inflation, and higher industry costs could influence the pace of growth.