Crest Nicholson (CRST) H1 2026 earnings summary

Executive summary

• Project Elevate is advancing, targeting the mid-premium segment with new house types, improved customer experience, and enhanced governance and operational discipline.

• Operational improvements include efficiency, cost control, cash generation, and improved inventory management.

• Customer satisfaction and construction quality metrics improved, with a retained 5-star rating and recognition for build quality.

• The business is navigating challenging macroeconomic and housing market conditions, with subdued land and sales markets.

• Covenant waivers have been extended to 30 September 2026, with ongoing lender negotiations.

Financial highlights

• Revenue for the half was £197.6m, down from £249.5m in HY25; £184.9m from housing, £12.7m from land.

• Adjusted gross profit fell to £13.9m (HY25: £35.4m), with gross margin dropping to 7.0% from 14.2%.

• Adjusted operating loss was £11.9m (HY25: profit £11.9m); basic loss per share was (5.1)p.

• Net debt increased to £141.8m (HY25: £71.5m); net debt including land creditors at £209.7m.

• No dividend proposed for FY26 due to losses and outlook.

Outlook and guidance

• FY26 volume guidance: 1,400–1,500 units, with open market units at 970–1,000.

• Land sales revenue expected at c.£40m.

• EBIT expected in the lower half of the £5–15m range; net debt forecasted at £100m–£120m.

• No guidance for FY27 due to macro uncertainty; market conditions expected to remain subdued.

• Forward orders for FY26 are approximately 1,300 units.