London, Jan 15, 2026, 13:04 GMT — Regular session
- Taylor Wimpey flags a drop in its 2026 operating margin, falling below the forecast for 2025
- Shares ended slightly lower, down 0.1% at 103.8p, after tumbling nearly 5% earlier in the session
- Investors are zeroing in on spring demand and the full-year results and guidance set for March 5
Taylor Wimpey (TW.L) shares slipped 0.1% to 103.8 pence on Thursday following a warning that its operating profit margin in 2026 will fall short of the 11% projected for 2025. The British homebuilder also cut its 2025 operating profit forecast to around £420 million. CEO Jennie Daly noted that while planning reforms are boosting permissions, demand “continues to be muted,” particularly among first-time buyers. The company reported 2025 revenue rising to roughly £3.8 billion on 11,229 completions, with the year-end order book down to £1.864 billion and net cash at £343 million. It expects 2026 to be more weighted toward the second half. Shares earlier dipped to 98.5 pence. (Investegate)
The margin line is crucial as UK builders enter the spring selling season, where reservation rates often determine whether full-year targets are hit. Operating margin, which measures operating profit as a percentage of revenue, can shift cash generation dramatically with even a slight change.
Investors are increasingly focusing on forward order books to gauge demand, particularly from first-time buyers. Bulk deals — large block sales of homes often priced below market — have come under scrutiny when the private market falters, as they help maintain volume but squeeze margins.
The guidance fell short of expectations for any margin improvement, sending the shares toward the bottom of the FTSE mid-cap index, Reuters reported. “Guidance for a further deterioration instead will not be what the market was hoping to see,” said Oli Creasey, head of property research at Quilter Cheviot. (Reuters)
Taylor Wimpey pointed to softer pricing on bulk deals secured in the second half, along with low single-digit build cost inflation, as key pressures on 2026 profits. The company also highlighted that uncertainty ahead of the late autumn budget dampened sales in the latter half of 2025, impacting the opening order book for 2026.
The company highlighted planning reforms as a boost but remains cautious about the spring surge. Daly said it’s “too early” to call the season, despite describing enquiry levels as strong.
Peers are signaling caution too. Vistry (VTYV.L) warned on Wednesday that its 2025 profit would miss market estimates after home sales dropped 9%. The builder also reported that forward sales entering 2026 were down compared to a year ago, highlighting the sector’s vulnerability to shifts in confidence and affordability. (Reuters)
But the jump in Taylor Wimpey shares highlights the pressure points. Should spring enquiries fail to turn into reservations, builders might rely more heavily on discounted bulk sales, which would squeeze margins even more. Build costs remain a key wildcard, especially if inflation in labour or materials picks up pace.
