Taylor Wimpey profit down 54% after £244m exceptional costs

Taylor Wimpey’s pre-tax profit was cut in half despite an increase in revenue in 2025, as cladding safety provisions and CMA payments took their toll.

The housebuilder’s latest accounts, for the year to 31 December 2025, revealed a pre-tax profit drop of £146.5m, down 54.3% from the £146.5m recorded in the year prior.

This was despite an increase in both revenue and group completions. The former stood at £3.84bn, up 13% from £3.4bn, while group completions including joint ventures were up from 10,593 to 11,229.

Without joint ventures, UK completions were up from 9,972 to 10,614, while the UK net private sales rate of 0.75 homes per outlet per week was steady on the year previous.

Before exceptional items, pre-tax profit had stood at £394.2m, which was still a decline on the previous year, but to a much smaller degree - 5.8% down from £418.5m.

Exceptional costs totalled £243.8m, with a net cladding fire safety provision increase of £225.8m and costs of £18m related to a voluntary agreement with the Competition and Markets Authority (CMA).

Almost the entirety of the increase in fire safety provision was in the first half of the year and had already been recognised in the firm’s interim results. Overall provisions increased to £492.1m.

Payments to the CMA were related to the settlement of an investigation into suspected exchanges of competitively sensitive information by seven housebuilders. Taylor Wimpey’s contribution was £15.8m, with legal and professional fees taking the cost up to £18m.

Looking to the year ahead, chief executive Jennie Daly said the Spring selling season was “progressing well, with encouraging levels of customer interest reflecting the quality of our sites and locations”. 

“We are also driving growth in outlets through improved planning outcomes and the consistent and proactive approach of our teams, which will support our growth ambitions,” she said.

Taylor Wimpey’s accounts stated that its 2026 would be “more second half weighted with around 40% of completions in the first half”, reflecting softer market conditions at the end of 2025.

Group adjusted operating profit margin is expected to be lower in 2026, reflecting “softer pricing in the order book coming into the year together with continued low single digit build cost inflation”. 

It anticipates adjusted operating profit of £400m in 2026. In October, Taylor Wimpey set its three-to-five year build target to 14,000-a-year, excluding JVs.