Taylor Wimpey (TW) H1 2024 earnings summary

Executive summary

• H1 2024 performance was resilient with completions and revenue down year-over-year, but sales rates, private sales rates, and operational quality improved; business is positioned for growth in 2025, supported by a strong landbank and constructive engagement on planning reforms.

• Revenue declined 7.3% year-over-year to £1,517.7m; operating profit fell 22.6% to £182.3m, with margin at 12.0%.

• Net private sales rate improved to 0.75 per outlet per week, with cancellation rates falling to 14%.

• Order book at 30 June 2024 valued at £2,012m (7,451 homes), down from £2,147m (7,866 homes) a year earlier.

• Increased cladding fire safety provision by £88m, bringing total to £333m, impacting profit.

Financial highlights

• H1 2024 revenue: £1,517.7m (down 7.3%); operating profit: £182.3m (down 22.6%); gross margin: 19.3%; operating margin: 12.0%.

• Adjusted basic EPS dropped 24% to 3.8p; profit before tax £99.7m (down 58.1%).

• Net cash at period end: £584m; expected year-end net cash: ~£550m.

• Interim dividend of 4.8p per share announced, in line with policy.

• Return on net operating assets: 10.9% (rolling 12 months).

Outlook and guidance

• Full-year UK completions (excl. JVs) expected at the upper end of 9,500–10,000 range; group operating profit in line with market expectations.

• Modest improvement in underlying operating profit margin expected in H2, excluding land sales impact.

• Year-end net cash forecast at c.£550m, subject to land spend.

• Business positioned for growth in 2025, assuming supportive market and planning reforms.