Taylor Wimpey reported a robust set of full-year results for 2025, with group completions rising 6% to 11,229 homes and revenue climbing 13% to £3,844.6 million, driven by higher volumes, improved average selling prices, and land sales.
However, profit for the year fell sharply to £100.4 million from £219.6 million in 2024, a drop of more than 54%. The main culprit was £243.8 million in exceptional costs, the bulk of which related to an increase in the cladding fire safety provision, primarily driven by cavity barrier remediation behind brickwork and render.
A further £18.0 million stemmed from costs tied to the voluntary agreement with the Competition and Markets Authority.
Adjusted operating profit edged up 1.1% to £420.6 million, though margins dipped to 10.9% from 12.2% the prior year. Profit before tax and exceptional items came in at £394.2 million, down 5.8%.
The market seems to take these results reasonable well and shares were around 1% higher at the time of writing.
“Taylor Wimpey built momentum in 2025, with most key figures heading in the right direction. Revenue was up 13% to £3.8bn, thanks to a healthy mix of completion growth and higher average selling prices,” said Aarin Chiekrie, equity analyst, Hargreaves Lansdown.
“There was a bit of a pullback in the second half, as many buyers chose to hold off from signing on the dotted line for a new home ahead of the later-than-usual UK Budget, in hopes of more favourable tax changes.”
Chief executive Jennie Daly described the performance as “robust” given a challenging market, noting that uncertainty around the Autumn Budget weighed on demand in the second half of the year. This is a message that echoed Vistry’s update yesterday.
Affordability constraints, particularly among first-time buyers in southern England, continue to weigh on the broader sector.
In terms of guidance, Taylor Wimpey expects 2026 UK completions of between 10,600 and 11,000, excluding joint ventures, with performance more weighted to the second half. The company guided adjusted operating profit for 2026 of around £400 million, reflecting softer pricing in the order book and continued low single-digit build cost inflation.
The board also announced an updated distribution policy, maintaining returns at 7.5% of net assets per annum, alongside a final dividend of 2.95 pence per share and a £52 million share buyback.