Vistry pauses share buyback as profits face headwinds

Housebuilder Vistry has suspended the latest tranche of its share buyback programme to focus on reducing debt, after warning of “significantly lower” first-half profits amid rising costs linked to the Middle East conflict.

The pause to the £15 million tranche of Vistry’s £130 million share buyback programme, introduced in 2024, comes as the company faces challenging market conditions.

This includes increased material and labour costs, and its higher use of incentives on low-margin and near-completion sites, which have brought forward profit impacts into the first half of the year.

It is likely to persist into the second half, albeit with lower levels of discounting.

FY2026 adjusted pre-tax profit is forecast between £168 million and £283 million (FY2025: £268.8 million), with the first half of 2025 seeing £80.6 million.

It is also expecting higher average daily net debt due to early land payments and slower home completions, but anticipates a net cash position exceeding £100 million by year-end.

“Since we reported our FY2025 results two months ago, the level of macro-economic uncertainty has increased, and with it the range of potential outcomes for the current year.”

Despite the pressures, Vistry said it had made “excellent progress”, with open market sales lifting around 30 per cent above last year.

It is now prioritising cash generation and reducing debt, with measures such as inventory reduction, stricter pricing discipline, slower site builds to align with sales, and higher hurdles for land purchases.

And while partner activity has been “subdued” as the sector transitions between social affordable housing programmes, demand is expected to rise in late 2026 and into 2027. 

The group’s forward order book remains robust at £4.5 billion, with £2.3 billion due for delivery in 2026.

Bosses said: “Since we reported our FY2025 results two months ago, the level of macro-economic uncertainty has increased, and with it the range of potential outcomes for the current year.

“Primarily due to the up-front profit impact of the actions to accelerate cash generation, we expect H1 profit to be significantly lower than the prior year.

“However, with the benefits of an improved margin mix on active sites and a step up in demand from our affordable housing partners we expect H2 2026 profit to be in line with H2 2025 profit.”

It follows changes at the top for the housebuilder as Greg Fitzgerald retired with this triggering the separation of the chairman and chief executive officer (CEO) roles.

Rob Woodward was appointed chairman, while regional boss Adam Daniels became CEO.

Daniels confirmed the Board remains committed to Vistry’s Partnerships strategy, with an operational review due ahead of its interim results.

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