Taylor Wimpey Stock Earnings Reports

Taylor Wimpey delivered a resilient 2025 despite a tough market: UK completions rose 6% to 10,614 (ex-JVs), group revenue increased 13% to £3.84bn and adjusted operating profit was £421m (margin 10.9%). Outlet openings accelerated (71 opened, +29% y/y; 219 outlets at year end) and the short-term owned/controlled landbank was reduced modestly to ~77,000 plots, supporting the group's medium‑term plan. Management reiterated medium‑term targets: c.14,000 UK completions, 4.5–5 years short‑term landbank, 16–18% adjusted operating margin and return on net operating assets >20% (over a multi‑year horizon). Key 2026 guidance: UK volumes 10,600–11,000 completions (ex‑JVs) and adjusted operating profit around £400m; volumes will be H2‑weighted (c.40% H1, 60% H2) and first‑half net cash around £0–£50m. Major near‑term headwinds to margin are 2025 order‑book pricing (c.0.5% adverse) and ongoing low single‑digit build cost inflation; the land sales margin benefit seen in 2025 is not expected to repeat in 2026. Balance sheet and cash: tangible NAV per share £1.176, net cash £343m at year end. Building safety provision: £544m set aside, £131m spent to date, £413m remaining; expected cash outflows c.£150m in 2026 and c.£100m in 2027 with remediation through 2030. Capital allocation: the Board keeps the 7.5% of NAV distribution target but introduces flexibility—minimum 5% of NAV must be ordinary dividend and the remainder can be delivered as either dividend or buyback; announced final dividend £0.0295/share (£105m) plus a £52m share buyback (total 2025 distributions £322m). Sales momentum has improved in the early selling season (recent 4‑week private sales rate ~0.83–0.87) with incentives running around 6%. Management remains confident in delivery of medium‑term targets given planning momentum and outlet growth, while noting geopolitical uncertainty (Middle East) is not yet reflected in guidance.