Persimmon Shares Surge 10% on Strong Earnings and Positive Outlook

Persimmon (PSN) announced robust full-year results for the year ended December 31, 2025, triggering a surge in its share price.

The housebuilder reported a 12% increase in new home completions and a 13% rise in underlying profit before tax, driving markets to react positively.

Shares jumped 10%, reflecting investor confidence in the company’s performance and future prospects.

Revenue increased by 16% to £3.31 billion, up from £2.86 billion the previous year, while underlying operating profit rose by 17% to £472.1 million. The underlying operating margin saw a slight improvement of 20 basis points, reaching 14.3%. Persimmon’s underlying profit before tax reached £445.6 million, a 13% increase year-over-year.

The company’s strong performance is underpinned by a strategic focus on operational improvements and investment in its land bank. Persimmon increased its land holdings to 84,879 plots owned and under control, a 3% increase from the previous year. The number of sales outlets also grew by 3% to 277, as the company progresses towards its target of at least 300 outlets.

Persimmon maintained its dividend per share at 60p and the company holds £117 million in cash. The forward sales position also looks strong, with private forward sales up 9% to £1.25 billion as of March 1, 2026.

The strong results and positive outlook are likely to sustain upward momentum in Persimmon’s share price. Markets will be closely watching the impact of the Iran conflict on customer sentiment and build costs. Positive early sales data for 2026 suggest continued growth if geopolitical tensions remain contained.

Dean Finch, Group Chief Executive, stated, “Persimmon delivered a strong performance for 2025… This reflects our sustained investment in the business and our commitment to self-help, enabling us to grow in a challenging market.”