Taylor Wimpey PLC (LSE:TW.) swung to a first-half loss due to cladding provisions, but reported a resilient underlying performance as home completions increased and customer demand remained steady despite softer market conditions in the second quarter.
Operating profit declined 11.7% to £161 million for the FTSE 100 housebuilder, reflecting a £20 million one-off charge related to historical remediation work, while completed sales increased 11% to 5,264 homes, including joint ventures.
The company posted a pre-tax loss of £92.1 million, driven by a £222.2 million increase in its cladding fire safety provision and an £18 million payment as part of a sector-wide settlement to end a Competition and Markets Authority investigation.
“We delivered a good underlying performance in the first half of 2025 in line with our expectations, notwithstanding softer market conditions in the second quarter,” said chief executive Jennie Daly.
An interim dividend of 4.67p per share, compared to 4.8p in the prior year.
The order book at 29 June stood at £2.12 billion, representing 7,269 homes, excluding joint ventures.
The company maintained its full-year UK completions guidance of between 10,400 and 10,800 homes, with expected operating profit for 2025 of around £424.00 million. Pricing remains broadly flat, and down valuations are reported to be low.
An improvement in operating margin is expected in the second half, supported by higher completions, stronger average selling prices, and ongoing cost control.