Persimmon expects increase in profit and completions ‘assuming Iran conflict is short’

Persimmon has predicted increases in its pre-tax profit and completions in the year ahead, while noting that this was based on assumptions about the duration of the ongoing crisis in the Middle East.

In its results for the year ended 31 December 2025, published this morning, the housebuilder revealed strong results across the board.

Total group revenue was up 17% from £3.2bn to £3.75bn, while new home completions rose 12% from 10,664 to 11,905.

The group also posted strong profit figures. Its statutory pre-tax profit was up 11% from £359.1m to £397.3m, while its underlying number increased 13% from £395.1m to £445.6m.

This latter figure represents the firm’s pre-tax profit before the effect of a net exceptional charge of £44.9m. Exceptional costs mostly came from cladding remediation expenditure, as well as a £15.2m payment relating to the settlement of a Competition and Markets Authority investigation. These costs were offset slightly by £11.1m in profit realised from the disposal of FibreNest.

In its outlook for this year, the housebuilder noted “greater mortgage availability and real wage growth” as positive signs and reported a net private sales rate per outlet per week of 0.73 in the first nine weeks of this year - 9% up on the year before.

However it made note of the current crisis in the Middle East, stating that it was “monitoring the impact the conflict with Iran could have on our markets in 2026, including on customer sentiment, build cost inflation and interest rates”. 

The business is anticipating delivery of between 12,000 and 12,500 completions in the year, with underlying operating profit expected to be “towards the upper end of current consensus”.

The company-compiled full year 2026 consensus as of 6 March set out an underlying operating profit range of £486m to £517m and underlying profit before tax mean of £470m - the latter figure would be a roughly 5% increase on this year.

However, both the anticipated completions and profit figures were “assuming the [Iran] conflict and its impact is short”.

The builder made further progress on building safety remediation during the year, with roughly 90% of known developments fully tendered, on site or complete. 

Group chief executive Dean Finch said Persimmon expected its programme of works “to be largely completed in the next two years”.

The company has also today announced the appointment of Rob Hart as regional chair of its South West division, following the promotion of the current positionholder, Julian Roper, to group construction director.

Hart joins from Barratt Redrow, where he was managing director of its Bristol business, however he previously worked at Persimmon for nearly 12 years.