Persimmon reported strong half-year 2025 results, with adjusted operating margins beating expectations. Despite input cost inflation challenges, the company remains on track to achieve a 20% adjusted operating margin target in the medium term. Morningstar maintains a fair value estimate of GBX 1,680 and views Persimmon as a top pick in the housing sector.

Private home completions increased by 7% year on year, with underlying operating profit up 13%. The forward order book for new homes also grew by 11% to GBP 1.25 billion, supporting revenue expectations for 2025 and 2026. Persimmon leads in building safety remediation work, with 100% of buildings assessed and 80% completed or in progress, outperforming the peer group average.

Read more at Morningstar: Strong Results Marred by Underwhelming Margin Outlook