Persimmon Plc Q2 2026 Earnings Recap

The market rewarded Persimmon's earnings with a 3.9% rise, reflecting investor approval of volume-led profit growth and a robust forward order book despite margin pressures.

Key Takeaways

• New home completions increased 13% to 5,189, driving a 10% rise in underlying operating profit to GBP 189 million.
• Gross margin declined to 18% due to a higher mix of affordable homes, increased incentives, and ongoing build cost inflation, with margin pressure expected to continue.
• Private sales per week rose 7% to 205, including a 14% increase in sales to first-time buyers, underscoring affordability strength.
• Forward order book strengthened to GBP 1.9 billion, up 5% for private homes, supporting near-term volume visibility.
• Return on capital employed improved 10% to 11.3%, while underlying profit before tax rose 3% amid higher interest costs from investment in growth.