Taylor Wimpey has launched a share buyback progamme after its adjusted half-year profits to 28 June fell 19.4% and its net cash reduced by nearly half to £168.6m.
The group has entered an agreement with Merrill Lynch to buy up to £41.9m of Taylor Wimpey’s ordinary shares of 1p each between today (31 July) and no later than the end of December.
Taylor Wimpey reported pre-tax profits of £116.8m, up on the £92.1m loss reported during the same period last year, but its adjusted operating profit fell from £161m to £129.7m.
Adjusted operating margins were 7.7%, down from 9.7% in the same period last year, which it said reflected weaker pricing, lower profitability and build cost inflation.
The group’s full-year 2025 pre-tax profits stood at £146.5m, down 54.3% on 2024’s £320.3m.
Revenue increased 1.7% year on year, from £1.65bn in H1 2025 to £1.68bn, while total full-year 2025 revenue stood at £3.84bn, up 13% year on year.
However, the group’s net cash fell 48.4% year on year, from £326.6m last year, to 168.6m this year. Adjusted basic earnings per share also fell from 3.2p per share in H1 2025 to 2.5p in H1 2026.
Last year, its profits were hit by a £222.2m increase in cladding fire safety remediation costs and an £18m payment to the Competition and Markets Authority as part of housebuilders’ wider contributions to settle an information sharing investigation.
The group has delivered around £52.3m via share buybacks in the first half. Chief executive Jennie Daly said the group delivered a “solid” first half performance against “continuing uncertainty” and a “challenging market”.
She added: “Reflecting the prolonged nature of the downturn, which has reduced expected profitability and cash generation, the board has reviewed the level of cash returns and deemed it prudent to revise our distribution policy to preserve balance sheet strength, retain financial flexibility and support our commitment to optimising shareholder returns through the cycle.”
Completions also fell marginally to 4,986 in H1, compared to 5,264 in the same period a year before.
The group’s total order book stood at 6,882 homes, excluding joint ventures, with a value of £1.93bn as of 28 June, compared with 7,269 homes with a value of £2.12bn this time last year. This included 3,410 affordable homes, down slightly from 3,640 a year ago.
“We are focused on delivering our strategy and generating value from our strong balance sheet and high-quality, well located landbank,” Daly added. “We are managing the business tightly, controlling costs and building resilience for an improved housing market when it comes.
“Housebuilding drives growth, jobs and opportunity across the UK and getting first-time buyers onto the housing ladder is essential for a functioning housing market. Rising build costs and the cost of regulation are making it harder to build in the places where homes are needed most.”
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