Vistry Group (VTY) H1 2026 earnings summary

Executive summary

• CEO-led strategic overhaul shifted focus to a capital-light, mixed-tenure model, targeting 12,000 units annually by FY 2031, with 60% partner-funded and 40% open market, and a significant reduction in operational complexity and regional footprint.

• Major deleveraging actions included land bank resizing, reduced land buying, and improved cash generation, with no equity raise expected.

• Exit from private sales in Southeast England and underperforming land positions, with a focus on higher-return geographies and partner-backed opportunities.

• Overhead savings of £50 million targeted by 2027, with further improvements by 2029, and a new CFO appointment expected.

• No anticipated need to raise equity; self-help measures and asset sales to drive deleveraging.

Financial highlights

• H1 2026 adjusted revenue was £1,703.3m, down 9% year-over-year; completions fell 8% to 6,304 units.

• Adjusted operating loss of £36.2m (H1 2025: £124.4m profit); adjusted loss before tax of £83.3m (H1 2025: £80.6m profit); reported loss before tax of £661.3m, including £475m goodwill impairment and £73m building safety provision.

• Net debt increased to £468.8m (H1 2025: £293.1m) due to trading deterioration and infrastructure investment.

• Gross margin dropped to 4.0% from 12.4% year-over-year, mainly due to discounting, impairments, and cost adjustments.

• Land sales revenue fell from £74m to £14m; part-exchange revenue increased from £47m to £81m.

Outlook and guidance

• FY 2027 APBT targeted at £185 million, with average daily net debt of £500 million; medium-term targets include 12,000 units/year, 12% operating margin, 30%+ ROCE, and £300 million average net debt.

• Overhead cost savings of £50m p.a. identified, in addition to £25m from prior schemes.

• Guidance assumes stable open market conditions and improved partner market due to affordable housing program awards.