Taylor Wimpey Shares Slide After Half-Year Results Reveal Dividend Cut

Shares in Taylor Wimpey (LON: TW.) fell sharply on Friday, dropping around 3.9% to 79.79p, after the UK housebuilder cut its shareholder distribution policy alongside half-year results that highlighted a tougher-than-expected market backdrop.

For the six months to 28 June 2026, Taylor Wimpey reported revenue up 1.7% to £1.68bn, but adjusted operating profit fell 19.4% to £129.7m, with margins compressing to 7.7% from 9.7% a year earlier. Net cash nearly halved to £168.6m from £326.6m, partly reflecting cladding-related outflows.

The most market-sensitive announcement was a revision to the group’s Distribution Policy, with annual shareholder returns now set at 4% of net assets — a move the board said was needed to “preserve balance sheet strength” and “retain financial flexibility” given the “prolonged nature of the downturn.”

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UK completions excluding joint ventures fell to 4,723 homes from 4,894, while the net private sales rate eased to 0.75 per outlet per week from 0.79. More worryingly, the four weeks to 26 July showed sales rates slipping further to 0.55, with cancellations at 18% and pricing roughly 2% below prior-year levels.

Management now expects full-year completions of 10,600–10,800 homes, at the lower end of previous guidance, citing stretched affordability, geopolitical uncertainty and slower buyer conversion. Build cost inflation is guided at 3–4% for the year.

CEO Jennie Daly struck a cautious tone, calling for government support to unlock housing demand while the group focuses on cost control and capital discipline through the downturn.