Shares in Persimmon jumped by over 7% in early trading after the housebuilder recorded a 17% increase in group revenue, totalling £3.75bn in the year to 31 December.

The firm also recorded an underlying profit before tax increase of 13% to £446m, while its new home completions rose by 12% year-on-year to 11,905 with an average selling price of £278,203.

Furthermore, its underlying operating profit increased by 17% to £472.1m in 2025, driven by increased volume and "ongoing operational excellence".

As a result, Persimmon posted a final dividend of 40 pence per share, taking the full-year total to 60 pence, matching that of its 2024 pay out.

Group chief executive at Persimmon, Dean Finch, said that the firm has delivered a “strong performance” in 2025.

He stated: “This reflects our sustained investment in the business and our commitment to self-help, enabling us to grow in a challenging market. I want to thank all my colleagues for their dedication and expertise in delivering this result; I am proud to work alongside them.

"Sales in the opening weeks of the year have been strong and the build to rent market is recovering from the slowdown around November's Budget. Whilst we have good visibility of both our costs for 2026 and our demand from registered providers and BTR, the impact of the Iran conflict on customer sentiment remains to be seen. Assuming the conflict with Iran and its impact is short, Persimmon is set to grow again in 2026."

The firm said market conditions have been supportive with greater mortgage availability and real wage growth, which combined with an increasing outlet base, has underpinned growth.

In the first nine weeks of 2026, its net private sales rate per outlet per week stood at 0.73, which increased by 9% year-on-year, while its private average selling price in the order book is up 6%.

Persimmon has outlined its guidance for the full-year, with its home completions set to total 12,136 homes, with an underlying operating profit range of £486m to £517m.

Furthermore, its underlying profit before tax is set to reach £470m in 2026.

Equity analyst at Hargreaves Lansdown, Aarin Chiekrie, said the firm has continued to build momentum over the year, with a performance that stood “head and shoulders above most of its peers”.

He added: "Operational performance has also been strong, with margins widening slightly over the year. The group’s in-house materials businesses were a big help on that front, giving the group quicker and cheaper access to key materials, shaving off around £5,000 worth of costs per house. That helped underlying pre-tax profits land ahead of market expectations, up 13% to £446m. Encouragingly, momentum has continued into 2026, with sales rates up 9% over the first nine weeks of the year.

"With its valuation sitting well below the long-run average, Persimmon offers an attractive way to play the UK housing market, and it remains our top pick in the sector. But bear in mind, the ongoing war in Iran and subsequent rise in oil prices have already made rate cuts less likely this year. That’s not helping buyer affordability, and it could be a while before external headwinds shift. In the meantime, Persimmon continues to run a tight ship, and there’s a prospective dividend yield of 5.5% on offer to reward potential investors for their patience."

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