Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said: “It was hard for Vistry to disappoint markets more than it did in 2024, when it issued three profit warnings in as many months.
“Vistry’s 2025 full-year results weren’t the finished product, but with profits now moving in the right direction again, investors will take slight comfort knowing it was a step in the right direction.
“Having stabilised the company now, CEO Greg Fitzgerald has announced his intention to retire once a suitable successor is found, calling time on his near-decade stint at Vistry.
“After a weak start to the year, partner-funded demand strengthened slightly in the second half, supported by a more favourable government policy environment for affordable housing, but full-year home completions were still down nine per cent.
“This was partly offset by higher average selling prices, so underlying revenue fell at a slower pace of four per cent.
“With its top line sinking in the mud, Vistry leaned into its enormous scale to negotiate hard on prices with suppliers, helping underlying pre-tax profits edge back into growth territory, up two per cent.
“Sales rates for 2026 are currently tracking well ahead of the prior year, but the group is leaning into incentives to convince buyers to sign on the dotted line.
“That’s weighing on margins and will likely mean profit growth trails revenue growth this year.
“While its low valuation looks attractive on the surface, the balance sheet isn’t in the best shape, so dividend payments and share buybacks aren’t the priority for now.
“There’s also transition risk as a new CEO is found and integrated into the business.
“Potential investors will need a lot of patience if they want to back this horse, and there looks to be better ways to play the UK housing market as things stand.”
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