Vistry Group PLC (LSE:VTY) said it met full-year expectations in 2025 and struck a note of cautious optimism on the outlook, signalling that performance in 2026 is likely to be weighted towards the second half as funding clarity improves and affordable housing programmes gather pace.
The housebuilder said adjusted profit before tax for the year to December is expected to be about £270 million, up from £263.5 million in 2024 and in line with market expectations.
A strong second-half performance, driven by rising margins, helped offset a subdued private sales market earlier in the year.
Revenue was broadly flat at about £4.2 billion, despite total completions falling to around 15,700 homes from 17,225 the year before.
Vistry said this reflected ongoing weakness in open market demand and funding uncertainty among some partners, particularly in the first half.
Operating margins improved sharply as the year progressed, rising from 6.7% in the first half to deliver a full-year margin of 8.4%.
The company said this reflected the start-up of higher-margin developments, better site mix and tighter cost control, as well as a reduced impact from legacy issues in its former South division.
Greg Fitzgerald, chief executive, said the group had delivered on its guidance “with a particularly strong second half performance despite continued challenges in the Open Market and the uncertainty related to the November Budget”.
“Strong margins enabled us to mitigate top-line headwinds,” he said, adding that the partnerships-led strategy positioned Vistry well for future growth in affordable housing.
Vistry’s business is weighted towards partner-funded housing, such as affordable homes delivered with housing associations and local authorities.
This mix was stable over the year at 74% partner-funded and 26% open market. Partner-funded volumes fell about 8% overall, largely because of funding delays in the first half, although affordable housing completions rose about 30% in the second half as visibility improved following the June spending review.
In the open market, where homes are sold directly to buyers, volumes dropped 11% as the group ran fewer sales outlets and supported demand with incentives of up to about 6% of selling prices.
Average selling prices nevertheless rose 3% to £282,000, mainly because of where homes were built rather than underlying price inflation.
The balance sheet continued to strengthen. Net debt at the end of December was about £145 million, down from £180.7 million a year earlier, in line with guidance for a year-on-year reduction.
Vistry said this was achieved despite higher land spending in the second half and some delayed partner deals.
The group also said it had been allocated the maximum £50 million award from Homes England as part of additional grant funding for the period to 2026, with the cash expected in the second quarter of this year.
Looking ahead, Vistry said it entered 2026 with forward sales of about £4.0 billion, providing strong coverage for the year.
It expects activity to pick up as bids are invited for the new 10-year Social and Affordable Homes Programme, with grant funding timelines pointing to stronger delivery in the second half.
The group added that lower interest rates could gradually help open market conditions, but said it expected results in 2026 to be second-half weighted again, though less sharply than in 2025.
Full-year results will be published on 4 March.