Persimmon PLC (LSE:PSN) shares jumped 10% to top the FTSE 100 on Tuesday morning as the housebuilder reported a solid set of results and expressed confidence about the current year.
With completed sales up 12% to 11,905 homes in 2025, and average selling prices up 4%, underlying operating profits climbed 17% to £472 million.
The company declared a 60p dividend, in line with the prior year, and ended the year with net cash of £117 million.
Trading in the first two months of the year has improved, with a reservation rate of 0.73, 9% ahead of the prior year, and the order book has an average selling price 6% ahead.
Broker Peel Hunt noted that the group spent a further £541 million on land last year and opened 103 new outlets. "With plans to open [more than] 100 more in FY26, the business is well placed to grow towards its 300 outlet target – the key determinant of future growth."
The group's vertical integration is helping to manage cost inflation, analysts added, with any impact from the Iran War seen as "unlikely to be seen this year".
Assuming the impact of the Middle East conflict is curtailed, the business expects to deliver 12,000-12,500 units this year, and generate underlying operating profit at the upper end of the current consensus of £486-517 million, though this will likely be dampened a little by higher interest costs.
The shares had fallen over 18% since the end of last month, so with the rebound, they are still down 1.25% since the start of the year.