Vistry’s full-year underlying revenue fell 4% to £4.2bn. This was driven by a 9% drop in completions to 15,658 new homes, partly offset by a 3% rise in average selling prices to around £282,000.
Underlying pre-tax profits rose by 2% to £269mn, helped by lower financing costs.
Free cash flow improved from £83mn to £177mn, largely due to deferred payments for land acquired. Net debt improved from £181mn to £144mn.
In 2026, the group expects to deliver “good” revenue and volume growth. This should see underlying pre-tax profits improve, but at a lower margin due to increased use of incentives to drive sales.
Vistry completed £71mn of share buybacks in 2025, but no dividend payments were announced.
CEO Greg Fitzgerald has announced his intention to retire, and the search for a successor is underway.
The shares fell 17.7% in early trading.
Our view
Vistry’s full-year results gave investors more to be concerned about. The group’s volume-led approach to housebuilding is eroding its pricing power. With margins set to narrow in 2026, concerns about its cash flows and balance sheet are growing, causing the shares to drop sharply on the day.
At its heart, Vistry’s Partnership model specialises in providing affordable housing by teaming up with local authorities and housing associations. These partners foot most of the bill, which in theory, frees up Vistry’s cash to deploy on more projects across the business and drive faster-than-average growth.
The government’s pledge to invest an unprecedented £39bn in affordable housing over the next decade marks a significant step up in funding. With this money beginning to flow, partner-funded activity has been picking up. We think Vistry is better-positioned to benefit from this tailwind than many of its peers. But it’s likely to be a slow-burning opportunity rather than a quick win.
The huge order book, standing at a mammoth £4.5bn, is a real asset. Vistry’s huge scale allows it to negotiate harder on prices of building materials, which should help it navigate build cost inflation better than most of its peers.
Despite the long-term positives, there are still plenty of issues the group needs to iron out.
Vistry’s partnerships model tends to have a lower margin than ordinary housebuilding projects. While selling these houses as part of bulk deals brings more cash in the door in one go, it puts downward pressure on selling prices, meaning there’s little room for error.
Vistry still has a foothold in the open market too. Here, a recent spike in sales volumes has been driven by higher discounting to convince buyers to sign on the dotted line for a new home, putting further downward pressure on profitability.
The balance sheet isn’t in great shape either, sporting a net debt position compared to many peers holding net cash. Selling land and delaying payments for new land that it’s bought is providing some short-term relief to cash flows, but it’s not a long-term fix.
If cash generation remains under pressure, Vistry’s build-rate may have to slow to better manage its bank balances, which would likely see this year’s growth targets wound back. Dividend payments also remain on hold until the balance sheet is in better health, and there’s no guarantee they return this year.
Vistry looks well-positioned to benefit from government support for affordable housing over the long term. But rising concerns about margins, cash flows, and balance sheet health are rightly weighing on sentiment. Until material progress is made on these fronts, we see scope for full-year pre-tax profit forecasts to come down from current levels (£296mn expected).
Environmental, social and governance (ESG) risk
Most housebuilders are relatively low risk in terms of ESG, particularly for those in Europe. However, there are some environmental risks to consider, from direct emissions to the impact of their buildings on the local ecology. The quality and safety of their buildings is also a key risk.
According to Sustainalytics, Vistry’s management of ESG risk is strong.
It doesn’t disclose its greenhouse gas reduction initiatives, but it has set itself targets and deadlines. And its reporting of direct and indirect emissions is in line with best practice. However, there’s currently no disclosure of an established product and safety programme or disclosures around recycled material usage.
Vistry key facts
All ratios are sourced from LSEG Datastream, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
