Persimmon (LON:PSN) Posts Earnings Results

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

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 Price Performance

Shares of Persimmon stock opened at GBX 1,320.50 on Tuesday. The company has a current ratio of 3.86, a quick ratio of 1.04 and a debt-to-equity ratio of 5.39. The firm has a fifty day simple moving average of GBX 1,428.32 and a 200-day simple moving average of GBX 1,284.14. The stock has a market capitalization of £4.23 billion, a price-to-earnings ratio of 16.65, a PEG ratio of 0.83 and a beta of 1.32. Persimmon has a 1-year low of GBX 1,030.50 and a 1-year high of GBX 1,552.

Analyst Upgrades and Downgrades

PSN has been the topic of a number of recent research reports. Citigroup raised their price target on shares of Persimmon from GBX 1,613 to GBX 1,615 and gave the company a “buy” rating in a report on Wednesday, January 14th. The Goldman Sachs Group began coverage on shares of Persimmon in a research report on Monday, November 24th. They set a “buy” rating and a GBX 1,446 target price on the stock. Peel Hunt restated a “buy” rating and set a GBX 1,330 target price on shares of Persimmon in a report on Thursday, November 13th. Jefferies Financial Group boosted their price target on Persimmon from GBX 1,815 to GBX 1,819 and gave the stock a “buy” rating in a research report on Monday, January 19th. Finally, JPMorgan Chase & Co. upped their price target on Persimmon from GBX 1,520 to GBX 1,800 and gave the stock an “overweight” rating in a research note on Thursday, December 4th. Five analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to data from MarketBeat, Persimmon has a consensus rating of “Moderate Buy” and a consensus target price of GBX 1,513.

About Persimmon

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.