Persimmon (LON:PSN) Announces Earnings Results

Persimmon (LON:PSN) announced its earnings results on Tuesday. The company reported GBX 100.70 earnings per share for the quarter, Digital Look Earnings reports. Persimmon had a net margin of 7.57% and a return on equity of 7.33%.

Here are the key takeaways from Persimmon’s conference call:

• Delivered strong 2025 results with underlying PBT up 13% to £446m, EPS +9% to 100.7p, completions +12% to 11,905 and a forward order book up 6% to £1.8bn, underpinning near-term earnings momentum.
• Expanded the high-quality land bank to almost 85,000 plots, grew outlets and secured additional banking headroom (new £250m term loan and £50m RCF increase) to fund land and WIP investment that supports medium-term volume growth.
• Building remediation remains a material cash and execution item: closing provision is £226m (down £9m y/y), ~£61m spent in 2025 and ~£100m expected in 2026, with some residual cost risk until sites are completed.
• Operational improvements and vertical integration accelerated — factory outputs rose strongly (e.g., Space4 +36%, brickworks +23%, tiles +54%), quality scores improved and five-star status retained, which should drive efficiency and margin upside over time.
• Guidance for 2026 targets completions of 12,000–12,500 and continued margin progression, but outcomes depend on unwinding embedded build-cost inflation and geopolitical risks (Iran conflict) that could raise costs if prolonged.

Persimmon Trading Up 0.4%

Shares of PSN stock opened at GBX 1,284.50 on Wednesday. The stock has a 50 day simple moving average of GBX 1,426.99 and a two-hundred day simple moving average of GBX 1,285.38. The company has a market cap of £4.12 billion, a P/E ratio of 16.20, a PEG ratio of 0.83 and a beta of 1.32. The company has a debt-to-equity ratio of 5.39, a quick ratio of 1.04 and a current ratio of 3.86. Persimmon has a fifty-two week low of GBX 1,030.50 and a fifty-two week high of GBX 1,552.

More Persimmon News

Here are the key news stories impacting Persimmon this week:

• Positive Sentiment: Management set an ambition of up to 12,500 home completions in 2026, signaling meaningful operational scale-up and supporting revenue outlook. UK’s Persimmon targets up to 12,500 home completions in 2026
• Positive Sentiment: Investor Chronicle highlights Persimmon keeping a lid on costs while boosting reservation rates — a combination that supports margins and forward revenue visibility. Persimmon keeps a lid on costs, while boosting reservation rates
• Positive Sentiment: Analysts and coverage note strong sales growth and continued land investment, which underpin a housing recovery thesis and future volume upside. Persimmon: Strong Sales Growth and Land Investment Support Housing Recovery
• Positive Sentiment: Market reaction: headlines report a sharp intraday jump (cited as ~7%) after the combination of results, guidance and operational commentary — momentum that likely amplified buying. Persimmon’s share price surges 7% on double boost! Can it keep rising?
• Neutral Sentiment: Company reported quarterly EPS of GBX 100.70 with net margin ~7.6% and ROE ~7.3%; management materials and the conference call/slides are available for detail, offering transparency but no major surprise. Quarterly earnings and slide deck
• Negative Sentiment: While pretax profit rose on higher sales, reports note Persimmon missed consensus expectations — a factor that could limit upside if investors focus on margins or one-off items. Persimmon pretax profit rises but misses consensus
• Negative Sentiment: Coverage notes mixed analyst signals — some upward revisions on volumes/guidance but caution over margins, valuation and broader sector headwinds, leaving the investment case somewhat contested. How The Persimmon (LSE:PSN) Investment Story Is Shifting With Mixed Analyst Signals

Wall Street Analyst Weigh In

A number of analysts have commented on PSN shares. Peel Hunt reiterated a “buy” rating and issued a GBX 1,330 price target on shares of Persimmon in a research note on Thursday, November 13th. Deutsche Bank Aktiengesellschaft cut shares of Persimmon to a “hold” rating and set a GBX 1,419 target price for the company. in a research report on Thursday, January 15th. Citigroup boosted their price target on Persimmon from GBX 1,613 to GBX 1,615 and gave the company a “buy” rating in a research note on Wednesday, January 14th. JPMorgan Chase & Co. increased their price objective on shares of Persimmon from GBX 1,520 to GBX 1,800 and gave the stock an “overweight” rating in a research note on Thursday, December 4th. Finally, Jefferies Financial Group increased their price target on shares of Persimmon from GBX 1,815 to GBX 1,819 and gave the stock a “buy” rating in a research report on Monday, January 19th. Five research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat.com, Persimmon presently has a consensus rating of “Moderate Buy” and a consensus target price of GBX 1,513.

About Persimmon

Persimmon Plc, together with its subsidiaries, operates as a house builder in the United Kingdom. The company offers family housing under the Persimmon Homes brand name; housing under the Charles Church brand name; and social housing under the Westbury Partnerships brand name. It also provides broadband services under the FibreNest brand; and timber frame, insulated wall panels, and roof cassettes under the brand Space4. Further, it offers concrete bricks and roof tile. Persimmon Plc was founded in 1972 and is headquartered in York, the United Kingdom.