Persimmon (LON:PSN) Releases Earnings Results

Persimmon (LON:PSN) issued its quarterly earnings results on Tuesday. The company reported GBX 100.70 EPS for the quarter, Digital Look Earnings reports. Persimmon had a return on equity of 7.33% and a net margin of 7.57%.

Here are the key takeaways from Persimmon’s conference call:

• Delivered strong 2025 results with underlying PBT up 13% to £446m, EPS +9% to 100.7p, completions +12% to 11,905 and a forward order book up 6% to £1.8bn, underpinning near-term earnings momentum.
• Expanded the high-quality land bank to almost 85,000 plots, grew outlets and secured additional banking headroom (new £250m term loan and £50m RCF increase) to fund land and WIP investment that supports medium-term volume growth.
• Building remediation remains a material cash and execution item: closing provision is £226m (down £9m y/y), ~£61m spent in 2025 and ~£100m expected in 2026, with some residual cost risk until sites are completed.
• Operational improvements and vertical integration accelerated — factory outputs rose strongly (e.g., Space4 +36%, brickworks +23%, tiles +54%), quality scores improved and five-star status retained, which should drive efficiency and margin upside over time.
• Guidance for 2026 targets completions of 12,000–12,500 and continued margin progression, but outcomes depend on unwinding embedded build-cost inflation and geopolitical risks (Iran conflict) that could raise costs if prolonged.

Persimmon Stock Up 7.9%

Persimmon stock opened at GBX 1,320.50 on Tuesday. The firm has a market cap of £4.23 billion, a PE ratio of 16.65, a P/E/G ratio of 0.83 and a beta of 1.32. The company has a debt-to-equity ratio of 5.39, a quick ratio of 1.04 and a current ratio of 3.86. The firm’s 50 day moving average price is GBX 1,428.32 and its two-hundred day moving average price is GBX 1,284.14. Persimmon has a twelve month low of GBX 1,030.50 and a twelve month high of GBX 1,552.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on the company. Deutsche Bank Aktiengesellschaft cut Persimmon to a “hold” rating and set a GBX 1,419 target price on the stock. in a report on Thursday, January 15th. The Goldman Sachs Group assumed coverage on Persimmon in a report on Monday, November 24th. They issued a “buy” rating and a GBX 1,446 price objective for the company. Jefferies Financial Group lifted their price objective on shares of Persimmon from GBX 1,815 to GBX 1,819 and gave the stock a “buy” rating in a research note on Monday, January 19th. JPMorgan Chase & Co. lifted their target price on Persimmon from GBX 1,520 to GBX 1,800 and gave the stock an “overweight” rating in a report on Thursday, December 4th. Finally, Peel Hunt restated a “buy” rating and set a GBX 1,330 price target on shares of Persimmon in a report on Thursday, November 13th. Five equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of GBX 1,513.

Persimmon Company Profile

Persimmon Plc, together with its subsidiaries, operates as a house builder in the United Kingdom. The company offers family housing under the Persimmon Homes brand name; housing under the Charles Church brand name; and social housing under the Westbury Partnerships brand name. It also provides broadband services under the FibreNest brand; and timber frame, insulated wall panels, and roof cassettes under the brand Space4. Further, it offers concrete bricks and roof tile. Persimmon Plc was founded in 1972 and is headquartered in York, the United Kingdom.