Vistry Group (VTY) H2 2025 earnings summary

Executive summary

• Profit before tax for 2025 was in line with expectations, supported by a strong second half despite challenging market conditions and no external market support.

• The group underwent significant reorganization, resulting in a leaner, more efficient, and stable structure with a focus on capital allocation and inventory reduction.

• The CEO announced his planned retirement, with succession processes underway and business continuity assured.

• Delivered 1 in 7 affordable homes in the UK, leveraging government funding and strong partner relationships.

Financial highlights

• Revenue declined 4% year-over-year to £4,155.3m, with completions down 9%, but average selling price increased slightly due to mix.

• Adjusted EPS rose 6% to 59.3p; reported profit before tax up 87% to £196.2m due to lower exceptional costs.

• Net debt reduced to £144.2 million at year-end, with a total net cash inflow of £36.5m versus £91.9m outflow in FY24.

• Gross margin improved by 100bps to 13.9%, driven by new higher-margin sites and improved site mix.

• Net finance costs fell 9.7% year-over-year, with average cost of debt reduced from 7% to 6.3%.

Outlook and guidance

• On track for volume and revenue growth in 2026, with a forward order book of £4.5bn and 67% of 2026 units secured.

• Expecting improved adjusted profit before tax in FY26, though margins will be lower due to sales incentives.

• Targeting a net cash position of over £100 million by year-end 2026.

• Expecting a 40% year-on-year improvement in sales rate, with strong momentum in the first 10 weeks of the year.

• Prioritizing cash generation, inventory reduction, and scaling Partner Funded activity.