Annual profits at Taylor Wimpey narrowly miss forecasts

(Sharecast News) - Housebuilder Taylor Wimpey adopted a cautious outlook for the current year on Thursday, after annual profits narrowly missed expectations.

Updating on trading for the year to 31 December 2025, the FTSE 250 firm said total group completions were 11,229, up from to 10,593 a year early.

UK home completions, excluding joint ventures, were in the middle of guidance range at 10,614, up from 9,972 a year earlier.

The overall average selling price was also higher, rising to £335,000 from £319,000.

However, operating profits were slated to come in at around £420m, up on last year's £416.2m but below the £424m forecast.

The operating margin also narrowed, coming in at 11% against 12.2% in 2024.

Taylor Wimpey said that uncertainty around November's Budget had impacted sales through the second half and into 2026.

Jennie Daly, chief executive, said it had been a "robust performance...in the context of challenging market conditions".

However, looking to the current year, and Taylor Wimpey warned that the operating profit margin would likely to be lower than 2025.

It also expects trading to be more second-half weighted than in previous years.

Daly said: "While too early to anticipate the outcome of the spring selling season, we have seen a good level of enquiries and are well-positioned to support customers through their buying journeys.

"The government's planning reforms have been welcome, and we've seen increased momentum in our recent planning permissions.

"However, while affordability is slowly improving, demand continues to be muted, particularly among the important first time buyer category, which will constrain overall sector output."