Vistry Shares Fall Amid Market Headwinds, Delivers Full Year Profit Growth

Vistry Group (LON: VTY) released a trading update for the year ended December 31, 2025, showcasing a resilient performance amidst challenging market conditions.

The company anticipates adjusted profit before tax of around £270 million, slightly up from £263.5 million in FY24, aligning with market expectations. However, the stock is down 4.5% following the report.

Revenue remained broadly flat at £4.2 billion, despite a decrease in total completions to approximately 15,700 units from 17,225 in the previous year.

Operating margin saw strong progression in the second half, resulting in a full-year operating margin of 8.4%, a significant improvement from 6.7% in the first half. This margin expansion reflects enhanced site mix and effective cost management initiatives undertaken throughout the year.

Vistry secured the maximum award of £50 million from Homes England, part of the £2 billion additional grant funding for FY21-26, acknowledging its performance as a Strategic Partner. This funding is expected to be received in Q2 2026 and will bolster the company's affordable housing initiatives.

The company strategically invested in new land and development opportunities during the second half, capitalizing on a subdued land market. Vistry secured 9,500 plots in H2, bringing the full-year total to 12,600.

Vistry successfully reduced its net debt position to approximately £145 million as of December 31, 2025, compared to £180.7 million at the end of 2024, meeting its guidance for a year-on-year reduction.

Total unit completions decreased by roughly 9% year-over-year to around 15,700, including approximately 3,000 from joint ventures. The mix remained stable, with 74% Partner Funded and 26% Open Market units.

Partner Funded units saw an 8% decrease to about 11,600, primarily due to funding uncertainty among partners in the first half. However, additional affordable housing volumes increased by approximately 30% in the second half, benefiting from clearer future funding following June's Spending Review.

Open Market units declined by about 11% to roughly 4,100, attributed to fewer sales outlets, despite Open Market sales conditions being similar to FY24. The Group supported its Open Market sales strategy during the year with incentives of up to c. 6% of open market sales price.

The Group's sales rate for FY25 averaged 0.96 sales per site per week reflecting uncertainty driven by the Autumn Budget causing a more subdued market in Q3 and the first half of Q4.

Greg Fitzgerald, Chief Executive commented, “I am pleased that we delivered on our full year guidance, with a particularly strong second half performance despite continued challenges in the Open Market and the uncertainty related to the November Budget, which delayed the timing of some Partner Funded deals.”