- Revenue and Profit Growth: Revenue rose 13% to £3.84 billion in 2025, with gross profit at £658 million and adjusted operating profit of £421 million.
- Completion Growth: Delivered 6% growth in completions, achieving 10,614 UK homes (excluding joint ventures).
- Shareholder Returns: Declared a £0.0295 final dividend and a £52 million share buyback, maintaining a 7.5% NAV distribution policy.
- Planning Reforms Impact: 28% increase in detailed planning for over 10,000 plots, with 49% of planning officers expected to recommend assertive applications positively.
- 2026 Guidance: Anticipates 10,600–11,000 UK completions, £400 million adjusted operating profit, and £30 million pre-exceptional net finance charges.
Operational Highlights and Outlook
The company's operational performance was characterized by a UK average selling price of £335,000, with private average selling prices at £374,000. Taylor Wimpey guided towards average outlets being higher in 2026 than in 2025, with UK volume guidance of 10,600 to 11,000 completions. The company expects adjusted operating profit of around £400 million, with pre-exceptional net finance charges of around £30 million. Analysts estimate revenue growth of 6.6% for the next year, indicating a positive outlook.
Valuation and Dividend Policy
Taylor Wimpey's valuation metrics indicate a relatively stable position, with a P/E Ratio of 41.96, P/B Ratio of 0.85, and Dividend Yield of 9.28%. The company's dividend policy has been updated to introduce flexibility in how the 7.5% of net assets is delivered, with a minimum of 5% to be paid as a regular ordinary dividend and the remaining portion returned via dividend or share buyback. The company declared a final 2025 dividend of £0.0295 per share and a £52 million share buyback.
Market Conditions and Challenges
The UK housing market remains challenging, with customer sentiment and affordability constraints affecting demand. First-time buyer numbers are improving, but deposit building remains a challenge, particularly in the south. The Section 106 affordable housing market is also challenging, with securing partners being a difficulty. However, the company is well-positioned for 2026 affordable deliveries, and its assertive planning strategy is delivering results, with a 28% increase in detailed planning for over 10,000 plots in 2025.
Cost Inflation and Procurement
Taylor Wimpey is guiding towards low single-digit build cost inflation, likely higher than the 1% seen in 2025, due to pressure from raw materials, energy, packaging, and labor. The company has made significant changes to its procurement practices, including expanding centrally managed categories, retendering, and introducing e-auctions. The new house type range accounted for over 1/4 of completions in 2025 and will rise to almost half in 2026, indicating a focus on cost management and efficiency.