Taylor Wimpey On Track to Meet Full-Year Guidance Despite Softer Market

Taylor Wimpey (LON: TW.) provided an investor and analyst update on Wednesday, outlining its strategy to deliver growth and maximize returns amidst softer market conditions.

The update highlighted the company's focus on optimizing its land position and driving operational efficiencies to achieve medium-term targets.

The housebuilder aims for UK completions of 14,000 units (excluding JVs), a landbank of 4.5 to 5 years, a group operating profit margin of 16-18%, and a group return on net operating assets exceeding 20%.

The company plans to achieve growth through increased outlet numbers, leveraging its existing landbank without significant net land investment.

In the nine weeks leading up to September 28, 2025, Taylor Wimpey reported a net private sales rate of 0.65 per outlet per week, compared to 0.70 in the equivalent period of 2024.

Excluding bulk deals, the sales rate was 0.64 (0.68 in 2024). Pricing remained stable, with a cancellation rate of 16%, consistent with the previous year. Year-to-date, the sales rate stands at 0.74 per outlet per week (0.72 in 2024), or 0.69 excluding bulk deals (0.68 in 2024).

The total order book value as of September 28, 2025, was £2,123 million, representing 7,223 homes, with 73% exchanged. This compares to £2,153 million and 7,709 homes in the equivalent period of 2024.

Taylor Wimpey reaffirmed its commitment to a capital allocation policy that prioritizes balance sheet strength, investment in the business to support growth, and a reliable dividend for shareholders.

Key Growth Drivers

• Land Optimization: Improving planning backdrop allows for optimized land positions.
• Operational Leverage: Volume growth and cycling into newly purchased land are expected to improve margins.
• Capital Efficiency: Focus on shorter landbank targets and improved work-in-progress efficiency.

The company remains on track to deliver its full-year 2025 guidance of 10,400 to 10,800 UK completions (excluding JVs). It continues to expect a full-year group operating profit of approximately £424 million.

Taylor Wimpey is currently operating from 215 outlets, and expects year-end outlets to range between 210 and 215. The company anticipates year-on-year growth in average outlets as it unlocks the value of its landbank.

While acknowledging the impact of factors like the delayed UK Budget on customer sentiment, Taylor Wimpey remains confident in the underlying fundamentals of the UK housing market and its medium-term potential for profitable growth and shareholder returns.