Persimmon (LON:PSN) Releases Quarterly Earnings Results

Persimmon (LON:PSN) posted 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 Price Performance

Shares of LON PSN opened at GBX 1,308 on Tuesday. The company has a quick ratio of 1.04, a current ratio of 3.86 and a debt-to-equity ratio of 5.39. The company has a market capitalization of £4.19 billion, a PE ratio of 16.49, a P/E/G ratio of 0.83 and a beta of 1.32. 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. 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 research analysts have commented on the company. The Goldman Sachs Group assumed coverage on Persimmon in a research note on Monday, November 24th. They set a “buy” rating and a GBX 1,446 target price for the company. Citigroup raised their target price on shares of Persimmon from GBX 1,613 to GBX 1,615 and gave the company a “buy” rating in a research report on Wednesday, January 14th. Deutsche Bank Aktiengesellschaft cut Persimmon to a “hold” rating and set a GBX 1,419 price target for the company. in a research note on Thursday, January 15th. JPMorgan Chase & Co. upped 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 reaffirmed a “buy” rating and issued a GBX 1,330 price objective on shares of Persimmon in a research note on Thursday, November 13th. Five analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average 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.