March 10 (Reuters) - British homebuilder Persimmon said on Tuesday it expects to deliver between 12,000 and 12,500 home completions in 2026 as it expands sales outlets, assuming the conflict with Iran
UK homebuilder Persimmon defies sector gloom with strong 2026 outlook, shares rise
Persimmon's Positive Forecast and Market Performance
By Raechel Thankam Job
March 10 (Reuters) - British homebuilder Persimmon bucked the sector trend on Tuesday, forecasting more home deliveries and profits at the top end of market estimates in 2026 as sales recover, sending shares 11% higher.
Profit and Delivery Expectations for 2026
The builder expects underlying operating profit near the upper end of analyst consensus of 486 million to 517 million pounds ($593-$630 million), contrasting with rivals Taylor Wimpey and Vistry which have recently warned of margin pressure and weaker demand.
The outlook, however, is based on an assumption that the fallout from the war in the Middle East can be contained.
CEO's Statement on Market Risks
"The impact of the Iran conflict on customer sentiment remains to be seen. Assuming the conflict with Iran and its impact is short, Persimmon is set to grow again in 2026," CEO Dean Finch said in a statement.
Sales in the opening weeks of the year have been strong and the build-to-rent market is recovering from the slowdown seen in November, Finch said.
Recent Financial Results and Share Performance
Persimmon also reported underlying pre-tax profit of 445.6 million pounds for the year ended December 2025, ahead of market expectations, and its shares were on track for their best day since April 2020, if gains hold.
Competitive Advantages Over Rivals
Cost Management and Supply Chain
ALL THE RIGHT THINGS
Persimmon has weathered cost pressures better than rivals because it makes its own bricks, tiles and timber frames, shielding it from cost inflation squeezing its competitors.
Analyst Commentary
RBC Capital Markets analyst Anthony Codling said the 2025 results and the beginning of this year confirmed their view
"that Persimmon is doing the right things at the right time in the right places, and is performing ahead of its peers."
Home Delivery Targets and Marketing Strategy
The company expects to deliver between 12,000 and 12,500 homes in 2026, while also leaning on marketing and incentives that helped it outperform sales expectations in 2025.
Managing Build Cost Inflation
"The potential impact of current uncertainty on build cost inflation is not yet known, but we anticipate limited impact this year due to existing supplier agreements and accelerated production levels coming into 2026," Finch said.
(Reporting by Raechel Thankam Job in Bengaluru; Editing by Sherry Jacob-Phillips and Tomasz Janowski)
