British homebuilder Taylor Wimpey has warned that its 2026 adjusted operating profit is expected to be around $533 million (£400 million), a decrease from the $560.8 million (£420.6 million) reported in the prior year. This revised outlook, which follows an earlier warning in January about declining profit margins, is attributed to persistent build cost inflation and softer pricing in the housing market.
The company also announced a cut to its final dividend to 2.95 pence per share, down from 4.66 pence in the previous year, and simultaneously launched a $69.3 million (£52 million) share buyback program. Analyst Aarin Chiekrie of Hargreaves Lansdown noted that while 2025 showed momentum for Taylor Wimpey, the 2026 outlook indicates a slowdown due to narrowing margins and an expected fall in underlying operating profits.
Despite a "progressing well" spring selling season, year-to-date net private sales rates have slightly declined to 0.74 homes per outlet per week, compared to 0.76 a year earlier. The order book also saw a slight reduction, standing at $2.91 billion (£2.18 billion) as of March 1, down from $3.04 billion (£2.28 billion) the previous year. Taylor Wimpey expects total UK home completions for 2026 to be between 10,600 and 11,000.
Morgan Stanley maintained a price target of 90p, acknowledging that the weaker margin and operating profit guidance had been signaled by the company. Peel Hunt, with a "Hold" recommendation and 110p target price, highlighted the challenging UK housebuilding market, noting continued margin pressure and a fragile volume outlook. The current dividend yield stands at 7.3%.
