Persimmon Reports Strong H2 Performance Amid UK Housing Market Resilience

Persimmon PLC reported a 7% year-on-year increase in second-half revenue, reaching £1.12 billion, supported by 4,300 new home completions and a 12% rise in average selling prices. The company’s underlying profit before tax grew to £243 million, up from £218 million in the same period last year, reflecting improved margins and cost discipline. The performance was underpinned by a 15% increase in new customer orders compared to H2 2024, with the average price per home now exceeding £440,000. Persimmon attributed the demand resilience to sustained household formation and constrained new supply in key regions including the South East and Midlands. The company maintained its full-year guidance, projecting 2026 completions to reach 8,800 units, slightly above previous estimates. The stock, trading under the ticker PSM.L, saw a 2.3% uptick in early trading on the news, outperforming the broader UKX index, which gained 0.7%. The pound strengthened against the dollar (GBPUSD at 1.2820), with investors interpreting the results as a sign of relative stability in the UK construction sector. Analysts noted that Persimmon's ability to maintain margins despite rising material costs and interest rate pressures underscores its operational strength. The results also highlighted a strategic shift toward higher-margin developments in urban and regeneration areas, where planning approvals have been more favorable. This focus is expected to support long-term profitability, even as broader housing demand remains sensitive to interest rate changes.