Taylor Wimpey Shares Fall: Navigates Challenging Market, Expects Lower Profit Margin in 2026

Taylor Wimpey (LON: TW.) released a trading statement for the year ended December 31, 2025, outlining a robust performance amid challenging market conditions.

While the company saw increased completions and revenue, it anticipates a lower operating profit margin in 2026, with performance weighted towards the second half of the year. The news sent the company's shares over 4% lower in early Thursday trading.

Total Group completions, including joint ventures, reached 11,229 homes, up from 10,593 in 2024. UK home completions, excluding joint ventures, landed within the company's guidance at 10,614, compared to 9,972 the previous year. The UK net private reservation rate remained steady at 0.75 homes per outlet per week, matching 2024.

Revenue for the year climbed to approximately £3.8 billion, surpassing the £3.4 billion recorded in 2024. This increase was fueled by higher volumes, increased average selling prices, and land sales. The company expects to report a 2025 Group operating profit of around £420 million, slightly above the £416.2 million in 2024.

However, the operating profit margin is projected to be around 11%, down from 12.2% in 2024. Strong land sales contributed a c.60 basis point enhancement to Group operating profit margin in 2025, which is not expected to recur in 2026. The company plans to recycle cash generated from land sales into smaller sites to improve Group returns.

Taylor Wimpey ended the year with a net cash position of £343 million, a decrease from £565 million the previous year. The company's strategy of recycling land sale proceeds into smaller sites signals a focus on optimizing capital allocation for improved returns.

Jennie Daly, Chief Executive, commented that, “We delivered a robust performance during 2025 in the context of challenging market conditions…While too early to anticipate the outcome of the Spring selling season, we have seen a good level of enquiries and are well positioned to support customers through their buying journeys.”