Stock Markets April 30, 2026 03:10 AM

Persimmon reiterates FY26 outlook despite small profit guidance cut and rising input-cost signals

Homebuilder flags early supply-chain inflation but says it is positioned to manage pressures through supplier ties, vertical integration and selective land buying

By Derek Hwang PSN
Persimmon reiterates FY26 outlook despite small profit guidance cut and rising input-cost signals
PSN

Persimmon has confirmed its market forecasts for fiscal 2026 while trimming its underlying profit before tax expectation slightly to £462 million from £470 million two months earlier. Management warned of nascent inflationary pressure in the supply chain that could influence the second half of 2026 and extend into 2027, but said it has levers to mitigate those effects and is exercising greater discipline on land acquisition.

Key Points

  • Persimmon has reaffirmed its FY26 market forecasts while lowering its expected underlying profit before tax slightly to 3.462 million from 3.470 million.
  • Operational performance shows modest gains: sales per site per week rose to 0.76 (2.3% year-over-year), excluding bulk sales the metric reached 0.67, and average selling prices in the order book increased 5%.
  • Management identified early supply-chain inflation risks potentially affecting H2 2026 and 2027, but expects to mitigate impacts through supplier relationships, vertical integration, cost savings and more selective land purchases - affecting the housing and construction sectors and related financing markets.

Persimmon reported a trading update on Thursday in which management reaffirmed its market forecasts for fiscal year 2026 while reducing the groups expected underlying profit before tax modestly to 3.462 million from 3.470 million indicated two months prior.

Executives highlighted early evidence of rising inflation within the supply chain, noting that this trend could feed through to costs in the second half of 2026 and into 2027. Company commentary said Persimmon is prepared to address these pressures through established supplier and subcontractor relationships, benefits from vertical integration, and potential internal cost savings. Management also said that a deliberate pause or reduction in land purchases could help lower interest costs.

Operational metrics published in the update showed sales per site per week increased 2.3% year-over-year to 0.76. That compares with 0.73 reported at the last update and 0.74 in the prior year. Removing bulk transactions from the calculation, sales per site per week reached 0.67, up from 0.65 a year earlier.

The company said the average selling price in its order book has risen by 5% - a movement it attributed to house price inflation and changes in mix. Private forward sales climbed by 7%, while total sales were up 6% over the comparable period.

On the distribution network, Persimmon reported a 2% year-over-year increase in selling outlets to 273. The firm noted this figure is lower than the 277 outlets it held at year-end 2025, and reiterated its stated objective of growing the network to 300 selling outlets.

Management addressed the conflict in Iran, saying it has not had a material impact on trading to date. While enquiries have softened slightly in recent weeks, Persimmon said overall enquiry levels remain broadly flat year-over-year. The company also reported improved conversion of enquiries into site visits and described visitor-to-reservation rates as resilient.

Persimmon further disclosed that over half of private homes and almost all housing association homes planned for 2026 completions are already secured. Interactions with institutional customers in the affordable and build-to-rent sectors were described as positive.

During the period under review, the group secured detailed or reserved matters approval for 3,080 plots, representing a 10% increase compared with the prior year. Persimmon said it is taking a more disciplined approach to acquiring new land given the current uncertain environment.


This update provides a snapshot of Persimmons trading momentum, key operational metrics and managements approach to cost and land-purchase discipline amid emerging input-cost inflation risks. The company maintained its fiscal year 2026 market forecasts while flagging areas it will manage closely in the months ahead.

Risks

  • Emerging supply-chain inflation could raise input costs in the second half of 2026 and into 2027, impacting margins in the homebuilding and construction supply sectors.
  • Slight softening in customer enquiries, noted in recent weeks, may weigh on demand conversion if the trend continues, with implications for sales velocity across the housebuilding sector.
  • A deliberate constraint on land purchases, while intended to reduce interest costs, may limit future build pipeline growth if continued over an extended period, influencing future completions and land-market activity.

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