Vistry Group (LON:VTY) Posts Earnings Results

Key Points

• Significant charges drove weak results: Vistry reported a £30 million first-half loss before CEO-review items, alongside roughly £470 million in site, land and work-in-progress adjustments, a £475 million goodwill impairment and a £79 million building-safety charge.
• Management is restructuring and deleveraging: The company is targeting a 60% partnerships/40% open-market mix, 12,000 annual units and a 12% operating margin by FY2031. Land creditors fell by more than £100 million in the first half, while Vistry expects further reductions and says no equity raise is planned.
• Market conditions remain challenging: Open-market reservations slowed to 0.3 per outlet per week, with year-to-date discounting at about 8%; FY2026 profit before tax is expected to be no more than £125 million before review impacts. Shares fell 6.2%, and analysts have a consensus “Reduce” rating.

Vistry Group (LON:VTY - Get Free Report) announced its quarterly earnings results on Thursday. The company reported GBX (18.80) earnings per share for the quarter, Digital Look Earnings reports. Vistry Group had a net margin of 3.82% and a return on equity of 4.20%.

Here are the key takeaways from Vistry Group's conference call:

• Negative Sentiment: Vistry reported a first-half loss of £30 million before CEO-review items, with £50 million of discounting used to clear stock. The review also identified approximately £470 million of further site, land and WIP adjustments, alongside a £475 million non-cash goodwill impairment and £79 million building-safety charge.
• Positive Sentiment: Management is refocusing the business on a simpler mixed-tenure model targeting a 60% partnerships/40% open-market split, 12,000 annual units, a 12% operating margin and more than 30% ROCE by FY2031. Owned land is expected to fall from 51,000 to 36,000 plots, with greater investment discipline and lower capital intensity.
• Positive Sentiment: Deleveraging is progressing, with land creditors reduced by more than £100 million in the first half and expected to fall by roughly £300 million during 2026. Vistry targets average daily net debt of £500 million in FY2027 and £300 million from FY2029, while stating that no equity raise is expected.
• Positive Sentiment: Vistry received £350 million of direct funding from the UK’s £9.6 billion affordable-housing grant program, the largest allocation to an individual provider. It also has five strategic development agreements signed, 10 more in advanced discussions and approximately 20,000 committed homes over five years through these partnerships.
• Negative Sentiment: Open-market sales remained weak, with reservations slowing to 0.3 per outlet per week and discounting increasing to about 8% year to date; PRS demand is also being held back by high bond yields. Management expects FY2026 profit before tax to be no more than £125 million before the review impacts and is guiding to £185 million for FY2027, assuming stable open-market conditions and improved partner funding.

Vistry Group Stock Down 6.2%

VTY opened at GBX 251.40 on Thursday. The stock has a market capitalization of £799.10 million, a price-to-earnings ratio of 5.99, a PEG ratio of -0.20 and a beta of 1.86. The firm has a 50 day moving average price of GBX 277.98 and a 200-day moving average price of GBX 295.92. Vistry Group has a twelve month low of GBX 220 and a twelve month high of GBX 746.40. The company has a quick ratio of 0.56, a current ratio of 2.52 and a debt-to-equity ratio of 17.93.

Insider Activity at Vistry Group

In related news, insider Adam Daniels bought 38,372 shares of the business's stock in a transaction on Wednesday, July 15th. The stock was acquired at an average price of GBX 261 per share, with a total value of £100,150.92. Also, insider Paul Whetsell bought 15,000 shares of the business's stock in a transaction on Tuesday, July 14th. The stock was bought at an average cost of GBX 253 per share, with a total value of £37,950. Company insiders own 1.23% of the company's stock.

Analyst Ratings Changes

Several analysts have commented on VTY shares. Jefferies Financial Group reiterated a "hold" rating and set a GBX 274 target price on shares of Vistry Group in a research note on Wednesday, August 12th. JPMorgan Chase & Co. decreased their price target on Vistry Group from GBX 430 to GBX 210 and set an "underweight" rating for the company in a research note on Monday, June 15th. Finally, Royal Bank Of Canada reaffirmed an "underperform" rating and set a GBX 180 price target on shares of Vistry Group in a report on Friday, September 18th. Two equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Reduce" and a consensus target price of GBX 422.14.

About Vistry Group

Vistry Group is a leading homebuilder developing in partnership to deliver sustainable homes, communities, and social value, leaving a lasting legacy of places where people love to live. Operating across 25 regions, we build homes for those who need them right across the UK. Our partners include Registered Providers, Local Authorities, Homes England and Private Rented Sector providers. Our timber manufacturing capability, Vistry Works, is at the core of our strategy to deliver more quality homes, faster. We sell homes on the open market through three respected brands: Bovis Homes, Linden Homes, and Countryside Homes.

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