Taylor Wimpey plc

Group revenue increased to GBP 1.68 billion. Gross profit was GBP 254 million, down 10% year-on-year, and gross margin fell 200 basis points to 15.1%. Adjusted operating profit was GBP 130 million versus GBP 161 million last year, and adjusted operating margin was 7.7%, down 200 basis points. U.K. completions excluding JVs were 4,723, down 3.5%, and U.K. completions guidance for the full year was cut to 10,600-10,800 homes. Private ASP increased to GBP 371,000 from GBP 350,000 in the prior first half, while blended U.K. ASP is now expected to be around 1% ahead for the full year. Underlying pricing is currently around 2% below prior year, build cost inflation was 2.5% in the half and is expected to be 3% to 4% for the full year. Net cash ended the half at GBP 169 million and is expected to rise to around GBP 250 million by year-end. Net finance costs are expected to be around GBP 25 million, and JV profit guidance remains GBP 4 million for the full year.

Jennie Daly emphasized that the market backdrop remains challenging, but said the company is focused on controlling what it can: cost discipline, outlet growth, and capital allocation. She repeatedly framed the strategy as unchanged and centered on protecting value now while preparing for a cyclical recovery. Her tone was cautious but steady, with an emphasis on resilience, selective investment, and improving return on capital rather than chasing volume.

Chris Carney highlighted that the main pressure on earnings came from lower underlying pricing and build cost inflation. He cited gross profit of GBP 254 million, gross margin of 15.1%, adjusted operating profit of GBP 130 million, and adjusted operating margin of 7.7%, with net cash closing at GBP 169 million after generating GBP 52 million of cash from operations. He also said WIP per outlet is down to GBP 9.3 million, land net of creditors has been reduced by GBP 169 million over 12 months, and cladding-related spend is now expected to be around GBP 100 million for the full year, lower than prior guidance.

Analysts focused on pricing, incentives, mortgage rates, outlet growth, WIP reduction, land market realism, bulk sales discounts, and the sharp cut in distribution policy. Management said pricing has stabilized recently but is still about 2% below prior year, mortgage-rate moves are affecting affordability and decision-making, and incentives are being used selectively rather than broadly. On land, they said adjustment takes time, but more vendors are becoming realistic; on bulk sales, discounts in the market were said to be around 15% to 20%.