Vistry Group (LON:VTY) Announces Earnings Results

Vistry Group (LON:VTY) announced its quarterly earnings data on Thursday. The company reported GBX (18.80) EPS 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 Price Performance

Vistry Group stock traded down GBX 5.40 during mid-day trading on Thursday, reaching GBX 262.60. 54,305,992 shares of the company’s stock traded hands, compared to its average volume of 13,520,855. Vistry Group has a 12-month low of GBX 220 and a 12-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. The stock has a 50 day moving average of GBX 277.98 and a two-hundred day moving average of GBX 295.92. The company has a market cap of £834.70 million, a price-to-earnings ratio of 6.25, a PEG ratio of -0.20 and a beta of 1.86.

Analysts Set New Price Targets

VTY has been the topic of several recent analyst reports. Royal Bank Of Canada reissued an “underperform” rating and set a GBX 180 target price on shares of Vistry Group in a research note on Friday, September 18th. JPMorgan Chase & Co. lowered their target price on shares of Vistry Group from GBX 430 to GBX 210 and set an “underweight” rating on the stock in a report on Monday, June 15th. Finally, Jefferies Financial Group reiterated a “hold” rating and issued a GBX 274 price target on shares of Vistry Group in a report on Wednesday, August 12th. Two analysts have rated the stock with a Buy rating, two have issued a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat, Vistry Group currently has an average rating of “Reduce” and an average price target of GBX 422.14.

Insiders Place Their Bets

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

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.