DAVY VIEW

Persimmon reported a strong set of results with its open market net private reservation rate at 0.65 per outlet per week, up 3% year-on-year (yoy). In what have been difficult open market conditions, this is a resilient result and a standout in the sector. FY26 guidance for underlying profit before tax was held at £456m. Completions growth is expected for FY27. On an underlying profit basis however, the drop through will be moderated by build cost inflation. This strong set of results reinforces our positive view of Persimmon. It remains our top pick in the sector.