Persimmon Keeps Guidance as Rivals Cut Forecasts

what happened

Persimmon kept its guidance for the current year while several rivals are moving their outlooks lower, according to Market Talk, citing Quilter Cheviot analyst Oli Creasey. He says the builder's sales rates are up from last year and approaching the long-term average.

Investors may still be disappointed, however, because the company did not raise guidance and expects only limited profit growth in 2027. Creasey thinks other housebuilders are likely facing the same inflationary pressure, noting that Taylor Wimpey made no comment on 2027 performance in its third-quarter statement. Persimmon shares rose 5.4% to 1,308 pence and are up 6% over the past 12 months.

why it matters

For the market, the key point is that a major UK homebuilder is holding its forecast amid weakness across the sector, but it gives no grounds for raising estimates. Investors will watch how higher costs affect builders' margins next year.

market impact

Persimmon and UK housebuilders: reaffirmed guidance supports the stock while peers cut outlooks

• ↔Persimmon shares mixed — reaffirmed guidance supports the stock, but no upgrade and limited 2027 profit growth weigh

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