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 declined 200 basis points to 7.7%. U.K. completions excluding JVs were 4,723, down 3.5%, and U.K. ASP excluding JVs rose 6.7% to GBP 334,000. Net private sales rate was 0.75 per outlet per week, about 5% lower than last year, and the order book was GBP 1.9 billion for 6,882 homes. Net cash ended the half at GBP 169 million, and the company expects around GBP 250 million at year-end. Guidance now calls for U.K. completions of 10,600 to 10,800 homes, blended U.K. ASP about 1% ahead of last year, build-cost inflation of around 3% to 4% for the full year, net finance costs of around GBP 25 million, and JV profit of GBP 4 million for the full year.

Jennie Daly framed the quarter as one of disciplined execution in a difficult market, emphasizing that demand is still resilient but customer confidence is weak and affordability remains stretched. She said the company is focused on controlling what it can: cost discipline, WIP efficiency, outlet growth, and improved return on capital, while preparing for a cyclical recovery. Her tone was cautious but constructive, repeatedly stressing that the strategy is unchanged even though the medium-term return targets may take longer to achieve in the current backdrop.

Chris Carney highlighted that the main financial pressure came from lower underlying pricing and build-cost inflation, with underlying pricing around 1.5% below last year in the half and build-cost inflation at 2.5%. He noted gross margin of 15.1%, U.K. gross margin of 14.4%, and adjusted operating margin of 7.7%, while also pointing to a resilient balance sheet with tangible NAV per share broadly unchanged at 117p and return on net operating assets broadly stable at 10%. He also outlined cash discipline: net cash moved from GBP 343 million at the start of the year to GBP 169 million at half year, with GBP 52 million of cash from operations, and he said the company now expects around GBP 100 million of cladding-related cash outflows for the full year and net cash of around GBP 250 million at year-end.

Analysts pressed on pricing, incentives, mortgage rates, WIP reduction, outlet growth, land market realism, the cut in distributions, and whether Help to Buy could return. Management said pricing has stabilized recently but remains about 2% below prior-year levels, mortgage rate moves are affecting affordability at the margin, and incentives are being used selectively rather than broadly. On capital efficiency, Chris said WIP per outlet is down to GBP 9.3 million and could move toward about GBP 8 million per site in the medium term if London apartment and infrastructure-heavy sites are stripped out. On dividends, management said the 4% of net assets policy is intended to balance shareholder returns with flexibility, and on Help to Buy, Jennie said the rumors were not substantive and the company is focused on demand and viability issues instead.