Vistry Shares Plunge as CEO Announces Retirement Amid Challenging Market Conditions

Vistry Group (LON: VTY) faces investor uncertainty as shares tumbled over 16% following the announcement of Executive Chair and CEO Greg Fitzgerald's impending retirement and the acknowledgment of persistent headwinds in the open market.

The leadership transition coincides with a strategic emphasis on cash generation for 2026, a move intended to navigate the current economic climate.

The full-year results for 2025 revealed a mixed performance. Revenue declined by 4% to £4,155.3 million, compared to £4,329.2 million in 2024, primarily due to a 9% decrease in completions, totaling 15,658 units. This reduction reflects ongoing challenges in the open market and the uncertainty surrounding the November Budget, which impacted the timing of partner-funded deals.

Despite the revenue dip, adjusted profit before tax increased to £268.8 million, up from £263.5 million the previous year, aligning with market expectations. Basic earnings per share also saw a positive shift, rising 6% to 59.3p. The operating profit margin improved by 20 basis points to 8.5%, indicating enhanced efficiency.

Vistry has successfully reduced net debt to £144.2 million as of December 31, 2025, a 20% decrease from £180.7 million in 2024. The group aims to achieve a net cash position by the end of 2026, targeting approximately £100 million, and lower average net debt throughout the year. The remaining £29 million of the existing £130 million share buyback program will be completed, but further capital distributions have been deferred to prioritize debt reduction.

One of Vistry's strengths lies in its partnerships, particularly in affordable housing. The company delivered one in seven of the country's affordable homes last year. The Group is strategically positioned to play a significant role in the Social and Affordable Homes Programme (SAHP) 2026-2036, with increasing clarity regarding the financial capacity of its partners.

The company has already seen positive momentum in sales volumes due to targeted pricing initiatives and incentives designed to stimulate the Spring selling season. Vistry anticipates this approach will drive revenue growth and improve cash generation, enabling a return to a net cash position by year-end while achieving year-on-year profit gains.

The forward order book stands at £4.5 billion as of March 3, 2026, an increase of £500 million since December, with 67% of forecast 2026 units already included. Vistry anticipates good year-on-year revenue and volume growth, along with an improvement in adjusted profit before tax in 2026, although margins may be slightly lower due to the sales incentives currently in place.

Greg Fitzgerald, Executive Chair and CEO of Vistry Group said, “After over 45 years in the sector, it is the right time for me to retire and I am confident that Vistry will go from strength to strength well into the future.”