STRONG GROWTH;

STRONG PLATFORM

Persimmon Plc Annual Report 2025

Persimmon is built on a strong platform for growth,

underpinned by trusted brands, financial resilience

and a skilled workforce. With a clear focus on quality,

efficiency and innovation, we are well positioned to

deliver sustainable value for customers, communities

and shareholders, while supporting the UK’s housing

needs for the future.

Our achievements are

possible only thanks to

ourexceptional people.

Iwould like to sincerely

thank every member ofthe

Persimmon team for their

dedication, expertise

andcommitment.

Dean Finch

Group Chief Executive

Strategic report

01 Our strategic framework

02 At a glance

03 Highlights 2025

03 Investment case

04 Chairman’s statement

06 Our markets

08 Our business model

09 Our value chain

10 Vertical integration

12 The value we create

13 Group Chief Executive’s statement

16 Our strategy

18 Key performance indicators

22 Financial review

25 Our people

28 Sustainability

50 Non-financial andsustainability

informationstatement

51 Section 172 statement

58 Principal decisions

59 TCFD

70 Principal and emerging risks

77 Viability statement

Governance

80–117 Directors' report

80 UK Corporate Governance Code 2024

81 Governance at a glance

83 Chairman’s introduction togovernance

86 Board leadership

88 Corporate governance statement

101 Nomination Committee report

108 Audit & Risk Committee report

115 Other disclosures

118 Remuneration Committee report

143 Statement of Directors’ responsibilities

Financial statements

144 Independent auditor’s report

151 Consolidated statement of

comprehensive income

152 Balance sheets

153 Statement of changes in

shareholders’equity

155 Cash flow statements

156 Notes to the financial statements

196 Other information

CLEAR PRIORITIES

WITHSUSTAINABILITY

ATTHE HEART

Our mission

To build homes with quality our customers

canrely on at a price theycan afford.

Our vision

To be Britain’s leading homebuilder, with

quality andcustomer service at its heart,

building the best value homes on the market

insustainable and inclusive communities.

We will invest in innovation and technology

to extend our low-cost strengths and

enhance our five-star capabilities to enable

as many peopleaspossible to buy the

homeswe build.

Our strategic framework

Read more on pages 16 and 17

Persimmon Plc Annual Report 2025 – 01Financial statementsGovernance Other informationStrategic report

At a glance

THREE STRONG BRANDS

PROVIDING DIVERSIFICATION

Persimmon is a leading UK homebuilder and is well placed with three strong brands. We have a

differentiated proposition focused on delivering high-quality homes at attractive price points for

our customers.

Discover more at www.persimmonhomes.com

Group housing

revenue

(£m)

Homes

sold

Land holdings

(plots)

North Scotland

East Scotland

West Scotland

Lancashire

North

East

Durham

Teesside

West

Yorkshire

Nottingham

North West

West

Midlands

East Wales

West Wales

Severn

Valley

Wessex

Thames

Valley

South East

South

Midlands

Central

North

Midlands

East

Midlands

Anglia

Suffolk

Essex

South

Coast

South

West

Cornwall

North and East Yorkshire

Eastern Counties

Southern

South West & Midlands

Central & Wales

Scotland North & West

Offices

Off-site manufacturing

Head office

Discover more about our

locations online:

www.persimmonhomes.com/

corporate/about-us/

our-locations/

Attractive product in its target market; builtandpricedwhere

value is important

Persimmon Homes is our core brand, which delivers a range of traditional family

housing throughout the UK in places where customers wish to live and work.

Witha focus on delivering value and quality for our customers, we sell most

ofourhomes under this brand.

Repositioned brand driving growth and value

The Charles Church brand complements and differentiates itself from Persimmon

by delivering larger, higher specification homes in premium locations across the

UK. We build homes under this brand tailored to local markets where our research

and experience have identified a strong demand for a premium product.

Expandingpartnershipopportunities

Westbury Partnerships is our brand with a focus on affordable social and Build

toRent housing. We sell these homes to housing associations and institutional

investors across the UK. This brand plays a key part in the delivery ofsustainable

homes for people looking to rent rather than buy their home, aswellas offering

solutions to some of the country’s affordable housing needs.

Persimmon Homes 2,498

Charles Church 465

Westbury Partnerships 349

Total 3,312

Persimmon Homes 8,730

Charles Church 1,100

Westbury Partnerships 2,075

Total 11,905

Persimmon Homes 58,260

Charles Church 10,950

Westbury Partnerships 15,669

Total 84,879

Financial statementsGovernance Other informationStrategic report02 – Persimmon Plc Annual Report 2025

Highlights 2025

1. Stated before net exceptional charge (2025: £44.9m; 2024: £34.4m) and goodwill impairment (2025: £3.4m; 2024: £1.6m).

2. 12-month rolling average calculated on operating profit before net exceptional charge (2025: £44.9m; 2024: £34.4m),

goodwill impairment (2025: £3.4m; 2024: £1.6m) and total capital employed. Capital employed being the Group’s net assets

less cash and cash equivalents plus land creditors.

3. The value of homes delivered to housing associations, the value of discounted open market value homes plus the value of planning

contributions we have made over the last five years.

4. The Group participates in a National New Homes Survey, run by the Home Builders Federation. The rating system is based on the

number of customers who would recommend their builder to a friend.

5. Estimated using an economic tool kit.

Operational highlights

Number of new homes sold

11,905

2024: 10,664

Net private sales rate

0.70

2024: 0.70

Outlets at 31 Dec

277

2024: 270

Average selling

price 2025

£278,203

2024: £268,499

Underlying

operating profit

£472m

2024: £405m

Return on capital

employed (‘ROCE’)

11.7%

20 24: 11.1%

Cash at 31 Dec

£117m

2024: £259m

Owned land holdings (plots)

70,236

2024: 69,189

Dividend per share

60p

2024: 60p

Sustainable

Investment in

local communities

c.£2.3bn

2024: c.£2.2bn

Customer

satisfaction score

93.5%

2024: 96.0%

Construction and supply

chain jobs supported

c.96,000

2024: c.79,000

DRIVING GROWTH

Investment case

High-quality

land bank and

growing

outlets

Three strong

brands

providing

diversification

Excellence in

build quality

and customer

service

Innovation

and unique

vertical

integration

Strong

balance sheet

Operating margin and

ROCE ambition of 20%

Increasing

shareholder returns

Supported by market fundamentals

and a pro housing Government

Investment case in action

AMBITION TO

DOUBLE THE SCALE

OF CHARLES CHURCH

During the year we launched our refreshed Charles Church brand

atHarlestone Grange in Northampton. We are seeing good demand

forour premium Charles Church homes and are targeting doubling

thescale of the business.

Volume

Margin

ROCE

Shareholder return

Persimmon Plc Annual Report 2025 – 03Financial statementsGovernance Other informationStrategic report

BUILDING MOMENTUM

FROM ASTRONG

PLATFORM

Chairman’s statement

Introduction

I am delighted to report another

year of positive progress in 2025,

achieving meaningful growth of

12% in completions in a challenging

market environment.

The progress that we have made over recent years –

expanding our outlet base, enhancing our planning

capability, developing our brands, investing in our

people and strengthening our vertically integrated

model – continues to differentiate our operational

platform from others and support ourlong-term strategy.

We remain true to our three core principles of high

standards of build quality, a strong balance sheet,

andexcellent operational efficiency enhanced by

vertical integration.

We were delighted to be awarded five-star status by

the Home Builders Federation (‘HBF’) for a fourth year

in a row, with customer excellence firmly embedded

within the Group’s strategic ambitions.

Our strong balance sheet has enabled us to make

disciplined investments at the appropriate point in

thecycle, expanding our land bank to support future

growth, guided by clear principles that ensure our

long-term ambitions remain firmly on track. In line

withour focus on core competencies and disciplined

capital allocation, we completed the sale of FibreNest,

the broadband provider business in August 2025,

enabling us to reinvest proceeds into areas that best

support Persimmon’s long-term growth ambitions

andoperational excellence.

Our three distinct brands – the core Persimmon product,

a revitalised Charles Church range, and Westbury

Partnerships focused on housing for our institutional

and registered provider customers – have all contributed

to deliver strong results for the year. This diversified

portfolio enables us to address a broad spectrum

ofcustomers.

Our vertically integrated model helps secure our

supply chain and support our capacity to consistently

deliver high-quality, affordable homes with industry-leading

margins. I have been delighted to see the progress

made, particularly at Space4 following the installation

of a new robotic line during the year.

Persimmon is in an excellent position to continue

growing, with a focused strategy and differentiated

platform to deliver strong financial results and value

for its shareholders.

Industry leadership

The UK’s housing need is well documented, and the

Government is committed to an ambitious housebuilding

target. Persimmon is positively engaged with Government,

and we welcome the beneficial changes to the planning

environment that the Government has introduced,

which should improve over time.

We remain dedicated to our building safety remediation

programme. In line with this, we were the first housebuilder

to sign the Scottish Government’s developer remediation

contract in December, demonstrating our commitment

to dealing with the programme diligently and swiftly.

Thanks to our proactive efforts, we have begun or

finished work on 77% of identified developments.

Weremain on track to complete most of the required

works over the course of the next two years, and further

progress on our remediation work will allow us the

opportunity to update our future capital allocation priorities.

We remain true

toour three core

principles of high

standards of build

quality; a strong

balance sheet;

andexcellent

operational

efficiency.

Roger Devlin

Chairman

Financial statementsGovernance Other informationStrategic report04 – Persimmon Plc Annual Report 2025

Shareholder returns

Our Capital Allocation Policy balances returns to

shareholders with investment for future growth. For 2025,

the Board proposes a final dividend of 40p per share,

payable on 10 July 2026 to shareholders on the

approval at the AGM. This dividend, combined

withthe interim dividend of 20p per share paid

inNovember 2025, totals 60p per share for the

2025financial year.

Board changes

As previously announced, Anand Aithal formally

joined the Board on 1 January 2025, and we are

already seeing the benefit from his wealth of

experience across many sectors.

Nigel Mills retired from the Board in May 2025

afternine years of service. On behalf of the Board,

Iwould like to extend my sincere thanks to Nigel for

hiscontribution during his time as a member of the

Board and wish him all the best for the future.

Duncan Davidson

I wish to pay heartfelt tribute to our esteemed founder,

Duncan Davidson, whose passing in October 2025

marks the loss of a visionary leader and the guiding

force behind Persimmon. Duncan was instrumental to

my appointment as Chairman and was always available

to provide help and guidance. Since establishing the

Company in 1972, Duncan’s unwavering dedication,

integrity, and principled leadership shaped our values

and left an enduring legacy – not only within our business

but also in the communities we serve across the UK.

His memory will forever inspire our commitment to

excellence and our belief in building thriving communities,

reflecting the spirit and standards Duncan championed

throughout his remarkable life. Iam delighted that we

are establishing an Apprenticeship Programme in his

honour funded by the Persimmon Charitable Foundation.

In conclusion

I would like to thank all our colleagues, partners

andstakeholders for their unwavering support

andcommitment during what has been a period

ofchallenge and achievement.

Although we operate within a challenging geopolitical,

economic and policy environment, our focus remains

on what we can control, executing on our strategy

andbuilding our business. As we look ahead, I am

confident that Persimmon’s strong foundations, clear

strategic direction and dedicated team will ensure

wecontinue to deliver growing value for customers

and shareholders alike.

Roger Devlin

Chairman

9 March 2026

DUNCANDAVIDSON

1941-2025

Duncan Davidson founded Persimmon in 1972 and led the

business until his retirement as

Executive Chairman in 2006.

On retiring, Duncan was appointed Life President of the

Company.

Duncan passed away in October 2025,

butheleaves behind a remarkable legacy.

Through his determination, integrity and pioneering spirit, Duncan grew Persimmon from

a small regional builder into one of the nation’s leading housebuilding companies.

Duncan was a man of great vision and entrepreneurship; he was pivotal to every stage

ofPersimmon’s growth. Duncan is also remembered for his warmth, humility and his belief

in doing things the right way. Duncan’s values continue to shape who we are today.

Duncan’s legacy lives on in the thousands of homes Persimmon has built, thecommunities

we continue to serve and the people whose lives he helpedshape.

In tribute to Duncan, we are launching an apprentice programme in his honour through

the Persimmon Charitable Foundation. The Duncan Davidson Apprenticeship Programme

will provide financial support to enable young people who might otherwise be unable to

do so, to access a career in housebuilding.

Persimmon Plc Annual Report 2025 – 05Financial statementsGovernance Other informationStrategic report

Our markets

GROWTH IN A CHALLENGING MARKET

Housing supply: persistent

challenges, planning policy

The UK continues to face a structural undersupply of

housing, with population growth and the need to replace

ageing stock intensifying the crisis. The Government’s

commitment to deliver 1.5 million homes over this Parliament

remains

, but delivery is lagging: completions in England

for the 12 months to September 2025 were well below

the 300,000 required annually tomeet the target. The

Government has reaffirmed its pro-housebuilding stance,

passing the Planning and Infrastructure Act in December

2025, andincreased funding with £39bn

pledged

under the Affordable Housing Programme as part of the

June Spending review. While encouraging, the sector

awaits changes on the ground. For example, the key

measures of the Act still require enabling through

secondary legislation.

1.5m homes

Government target for new home additions

overthis Parliament¹

Our response

We have proactively enhanced our planning approach

over the past few years and secured approvals on 12,815

plots in 2025 — exceeding utilisation rates and demonstrating

resilience despite policy uncertainty. Our engagement with

policymakers remains robust, advocating for streamlined,

sustainable development and faster planning decisions.

We are leveraging our national land bank and strategic

land pipeline to maintain delivery momentum, while

closely monitoring evolving planning frameworks and

environmental requirements. This allowed us to grow

ouroutlet base during 2025, against industry trends,

with further growth expected in 2026.

Discover more at www.persimmonhomes.com

1. www.gov.uk/government/news/planning-overhaul-to-

reach-15-million-new-homes.

2. www.gov.uk/government/publications/delivering-a-

decade-of-renewal-for-social-and-affordable-housing/

delivering-a-decade-of-renewal-for-social-and-

affordable-housing.

Affordability and market

trends: headwinds remain

In 2025, the UK economy continued its recovery,

withreal GDP growth estimated at 1.3%. Although

inflation has eased, it continued to exceed the Bank

ofEngland’s target, which has dampened the pace

ofrate cuts impacting affordability, particularly for

first-time buyers. Nevertheless, wage growth has

outstripped house price inflation, and mortgage rates

have declined — with the average two-year fixed rate

at 4.86%

in December 2025. Meanwhile, despite a

pause on investment in the lead up to the Budget, total

institutional investment in Build to Rent (’BTR’) schemes

totalled a record c.£5.3bn in 2025

. 59% of this was

for single family housing, continuing the trend seen in

2023 and 2024.

While the Autumn Budget contained little direct impact

on housebuilders, the introduction of a mansion tax for

properties over £2m from April 2027, adjustments to

pension salary sacrifice, new pay-per-mile charges for

electric vehicles, higher taxes on rental income, frozen

income tax thresholds and a consultation on ending

Lifetime ISAs could have an impact on the wider

housingmarket.

Our response

We continue to offer a broad range of homes at

accessible price points, with our core private average

selling price below the national average. During 2025,

we also launched two new products, New Build Boost

and Rezide to help our customers bridge the affordability

gap with an interest-free loan of 15% of the purchase

price. Our diversified brand portfolio — spanning our

core Persimmon brand, the premium market through

Charles Church, and the BTR/affordable institutional

markets through Westbury — enables us to adapt to

regional market dynamics. Strategic partnerships in the

private rental and affordable housing sectors underpin

our resilience and growth, while our national footprint

provides a buffer against regional volatility.

1. www.moneyfactsgroup.co.uk/media-centre/group/

lenders-slash-rates-and-improve-choice-for-borrowers/.

2. Savills UK Build to Rent Market update.

Links to key priorities

Build quality and safety

Customers at the heart of our business

Disciplined growth: high-quality land investment

Read more on pages 16 and 17

Links to principal risks

UK economic and market conditions

Government policy and political risk

Land and planning

Supply chain

Regulatory compliance

Read more on pages 73 to 76

Links to key priorities

Customers at the heart of our business

Disciplined growth: high-quality land investment

Supporting sustainable communities

Read more on pages 16 and 17

Links to principal risks

UK economic and market conditions

Government policy and political risk

Land and planning and planning

Reputation

Read more on pages 73 to 76

Financial statementsGovernance Other informationStrategic report06 – Persimmon Plc Annual Report 2025

Labour and build cost

pressures: benefiting

fromvertical integration

Labour shortages, an ageing workforce and persistent

skills gaps continue to constrain productivity and inflate

build costs nationally. While build cost inflation was at a

more normal c.2%-3% in 2025, the impact on projects

acquired in previous years remains. The sector’s focus on

apprenticeships and graduate programmes is growing,

but as the industry returns back to previous peak

volumes, supply may be constrained. In addition, the

2025 Budget introduced a sharp increase in landfill

taxes (with the lower rate for inert materials such as

topsoil, doubling from April 2026, and further rises

expected in future years) adding further regulatory

costpressure to developers.

526

trainees and apprentices within the business

c.96,000

supply chain jobs supported

Our response

We are mitigating supply chain and cost challenges

through robust supplier agreements and investment in

vertical integration. Our apprenticeship and educational

partnerships are expanding, with over 520 trainees and

apprentices currently in training and c.96,000 supply

chain jobs supported. We continue to invest in our

factories as we look to increase productivity as well as

increase off-site manufacture. During 2025, we installed

a new semi-automated timber frame line and were the

first developer to install an automated roof truss line,

both at our existing Space4 timber frame factory. We

also continue to pilot innovative construction methods,

including with a brick facade system. As we increase the

use of timber frames and continue to find innovative

solutions, this will drive efficiency and address

longer-term skill shortages.

Discover more at www.persimmonhomes.com

Regulatory shifts: adapting

to a changing landscape

The regulatory environment remains changeable.

TheGovernment’s planning reforms aim to reinstate local

housing targets and streamline approvals, but

implementation timelines remain uncertain. The Future

Homes Standard (’FHS’), targeting net zero-ready homes,

is still to be finalised and a date set for implementation.

TheBuilding Safety Levy, designed to fund remediation

of unsafe cladding, will be introduced in Autumn 2026.

The Competition and Markets Authority (’CMA’) closed

itsinvestigation into housebuilding in October 2025,

with the sector committing to enhanced compliance,

transparency and a £100m contribution to affordable

housing (of which Persimmon contributed £15.2m)

Our response

We are actively preparing for regulatory change,

withenergy transition plans in place for all developments

and early adoption of low-carbon heating solutions such

as air source heat pumps. Our compliance and training

programmes are being enhanced in line with CMA

commitments, and we are working closely with industry

bodies to shape best practice on information exchange

and competition.

1,328

Low-carbon heating solutions installed instead

of gas boilers

Discover more at www.persimmonhomes.com

1. www.gov.uk/government/news/affordable-housing-set-

to-benefit-from-100-million-following-cma-probe.

Links to key priorities

Build quality and safety

Industry-leading financial performance

Read more on pages 16 and 17

Links to principal risks

UK economic and market conditions

Government policy and political risk

Supply chain

Skilled workforce, retention and succession

Read more on pages 73 to 76

Links to key priorities

Build quality and safety

Customers at the heart of our business

Disciplined growth: high-quality land investment

Industry-leading financial performance

Read more on pages 16 and 17

Links to principal risks

Government policy and political risk

Climate change and sustainability

Building safety and legacy buildings

Land and planning

Reputation

Regulatory compliance

Read more on pages 73 to 76

Persimmon Plc Annual Report 2025 – 07Financial statementsGovernance Other informationStrategic report

Our business model

WHAT WE DO

We are a UK homebuilder focused

on identifying and meeting local

housing needs. Our skilled land,

planning and design teams

collaborate closely with local

governments, landowners and

communities to plan and deliver

developments in areas where

people desire to live and work.

With a disciplined land investment strategy and

in-house manufacturing facilities for key materials,

weensure quality and sustainability. Our goal is to

create affordable, well-designed homes within

sustainable communities, backed by exceptional

customer service throughout the home-buying journey.

See Sustainability on

pages 28 to 49

BRANDS

AND

GEOGRAPHIC

REACH

Our UK-wide network and

three strong brands provide

quality homes at a range

ofprice points.

VERTICAL

INTEGRATION

AND

INNOVATION

Our factories provide

security of supply over key

materials while allowing

continued innovation.

HIGH-QUALITY LAND

Our high-quality land holdings with industry-leading

embedded margins areakey strength.

QUALITY AND AFFORDABILITY

We build high-quality homes at attractive

prices,enabling our customers to access

thehousingmarket.

CUSTOMERS

Placing customers first, building

trust and delivering exceptional

value homes.

Financial statementsGovernance Other informationStrategic report08 – Persimmon Plc Annual Report 2025

Land

Through a disciplined and strategic approach to land

acquisition, we leverage strong local relationships to

secure optimal opportunities, with a significant proportion

of our completions sourced from our strategic land

bank. This approach consistently delivers superior

margins compared toopen market purchases.

Our value chain

VALUE CREATION AT EVERY STAGE

Our value chain is fundamental to driving growth at every stage of our operations. Right from the way

we acquire land through to handing over keys to the customer, we are maximising growth and driving

returns. We choose where to build, how to build and what to build to drive value creation.

Planning

Our strong master planning skills and high plot density

drive value from the land we purchase. We have a

local engagement-led approach to achieving planning,

which is driving success in achieving approvals.

Procurement and construction

In procurement and construction, our unique vertically

integrated model is a key driver of business value,

ensuring consistency, quality and efficiency across the

supply chain. The adoption of The Persimmon Way

streamlines the build process, maintaining high

standards and operational efficiency.

Sales and customer care

Our significant investment in dedicated in-house sales

and customer care teams for each of our brands has

resulted in consistently exceptional service and strong

customer recommendation rates. In addition, through

the launch of innovative products and incentives we

are driving our sales rates.

84,879

plots owned or controlled, with

over 77k

further potential plots in strategic land bank

12,815

plots achieved planning in 2025

growth in outlets

93.5%

of our customers would recommend

ustoafriend

Persimmon Plc Annual Report 2025 – 09Financial statementsGovernance Other informationStrategic report

Delivering quality at scale

Tileworks, the Group’s own concrete roof tile

manufacturing facility, produces tiles solely for

theGroup. During the year, Tileworks supplied

c.12million tiles to 282 sites across the Group,

54%more tiles than in 2025. To meet increasing

demand for tiles across the Group we are planning

tointroduceathird shift in 2026.

Group’s tile usage

89%

Vertical integration

OPPORTUNITY

THROUGH VERTICAL

INTEGRATION

Our vertical integration provides security of

supply and quality of key materials at efficient

cost. This is supported by Group and local

buying teams, which secure the best deals

onother material requirements.

Through our vertically integrated capabilities, we are investing in

innovation and technology to extend our low-cost strengths and

enhance our five-star capabilities to enable as many people as

possible to buy the homes we build.

This gives us a strong platform to support our growth ambitions, through

greater use of off-site manufacture providing increased build speed

and efficiency while reducing our exposure to build cost inflation.

Disposal of FibreNest

In August, we sold FibreNest, our non-core broadband

service, to BUUK Infrastructure, allowing us to use the proceeds

to invest further in our growth strategy as set out in March

2025 and eliminating further investment inFibreNest. Under

BUUK’s ownership, FibreNest will offer improved choice for

customers, with access to upto 18 internet service providers.

Net cash receipt

£68m

Securing supply,

ensuringstandards

Brickworks produces concrete bricks and

isentirelyfocused on supplying the Group’s

housebuilding operations. During 2025, Brickworks

supplied c.60 million bricks and block paving to

258sites across the Group. This represented 56%

ofthe Group’s brick usage in the year and a 23%

increase in demand in 2025. The factory has the

capacity to produce c.70 million bricks per year

withextra capacity being added during 2026,

givingus security of supply as volumes recover.

Group’s brick usage

56%

Financial statementsGovernance Other informationStrategic report10 – Persimmon Plc Annual Report 2025

NEW AUTOMATED AND

ROBOTIC TECHNOLOGY

AT SPACE4

During the year we installed new automated and robotic technology at our existing

Space4 facility in Birmingham. The investment means we are able to deliver a more

advanced product more safely, with higher accuracy and consistency and less

wastage. The production line has been custom built for our house types with our 3D

designs fed into the software, which works out how much material is needed with

minimal waste, resulting in a more sustainable way of building. We are the first

developer to install an automated roof truss line with certification achieved in

November 2025, and the first deliveries to site due early in 2026.

Discover more at www.persimmonhomes.com

Driving efficiency

throughinnovation

Our Space4 manufacturing business produces timber

frames, highly insulated wall panels and roof cassettes

as a ‘fabric first’ solution to the construction of new

homes. Space4’s MMC system helps us to improve

siteproductivity (cutting seven weeks off build time),

increase build capacity and mitigate construction

industry skills shortages. Space4 supports all of our

brands and supplied c.4,600 timber frame kits and

roof systems to the Group in 2025, up 36% year on

year. Our Space4 factory provides us with the unique

ability to implement, among other initiatives, innovative

‘fabric first’ solutions to enhance the future efficiency

of our homes.

Timber frame kits and roof systems

suppliedtothe Group

c.4,600

Persimmon Plc Annual Report 2025 – 11Financial statementsGovernance Other informationStrategic report

Create sustainable communities

Our Placemaking Framework ensures

thatallourdevelopments create a sense of

placefor our customers and put communities

attheheart of our developments.

New homes delivered

11,905

2,075 delivered to

housing associations

‘Homes for all’

£286,145

Persimmon Homes private average selling price

c.19% lower than the UK national average¹

Investing in communities

c.£2.3bn

over the last five years

Public open spaces

541

acres created²

HBF score

4.30

HBF combined survey score³

Financial performance

Our well-established strategy provides aresilient

balance sheet and high-quality landholdings

from which we have the expertiseto deliver

sustainable returns forallour stakeholders.

Financial strength

£3.61bn

balance sheet net assets

at 31 December 2025

Capital returned to shareholders

£192m

in the year to 31 December 2025

Resilient balance sheet

£117m

net cash at 31 December 2025

Employment

4,605

direct employees at 31 December 2025

Jobs supported

c.96,000

construction and supply chain jobs

1. Based on the Persimmon Homes private average selling price

of £286,145 for the year to 31December 2025 compared

with the national average selling price for newly built homes

sourced from the UK House Price Index as calculated by the

Office for National Statistics from data provided by HM

LandRegistry.

2. Estimated using an economic tool kit.

3. National New Homes Survey, run by the Home Builders

Federation, combined build quality and customer service

scorebased on 8-week and 9-month survey responses.

Persimmon performed

very well in 2025,

withearnings growth

underpinned by our

sustained investment

inthe business and

focus on self-help over

the past few years.

Dean Finch

Group Chief Executive

The value we create

Financial statementsGovernance Other informationStrategic report12 – Persimmon Plc Annual Report 2025

Group Chief Executive’s statement

DELIVERING A STRONG

PERFORMANCE

THROUGH STRATEGIC

INVESTMENT AND

SELF-HELP

Persimmon’s performance exceeded

expectations in 2025, with earnings

growth underpinned by our sustained

investment in the business and focus

on self-help over the past few years.

Our strategy is focused on choosing where we build,

what we build and how we build. This strategic focus

drove 12% growth in completions and 13% increase in

underlying profit before tax

, supporting cash generation

and improvements in margin and ROCE. Our three

strong, well-positioned and distinct brands all grew

and remain a key differentiator: the core Persimmon

brand is well placed for today’s market, Charles

Church grew strongly as we invested in our premium

offering, and Westbury continues to drive growth in

the partnerships and Build to Rent (‘BTR’) markets.

We increased the number of outlets we operated from,

against industry trends. We sold more homes, with

ex-bulk sales rates up 4% to 0.59 per outlet per week

and we successfully launched innovative products like

New Build Boost and Rezide to help address affordability

challenges for customers. Our current forward order

book is up 6% year on year. Our investment in our

vertical integration benefited delivery in 2025 and will

continue to do so for years to come. Enhanced house

type ranges are meeting customer needs while also

improving build efficiency. The addition of new sites to

our already strong strategic land bank provides us with

an expanding platform for future growth.

Our strategy enables us to build more routes to more

markets to deliver more homes and growing returns.

Our plans for further investment, innovation and self-help

all support our medium-term growth ambitions, driving

further margin improvement and enhanced returns. As

an already growing company at this point of the cycle,

we are well positioned to secure further expansion

when market conditions improve and the Government’s

welcome planning reforms take effect.

During the year, we also made further progress in

building safety remediation and expect the programme

of works to be largely completed in the next two years.

As proudly the first major housebuilder to protect

leaseholders from the cost of building safety remediation,

we have always recognised this action is the right thing

to do as a responsible business. The works’ completion

alongside the continued delivery of our broader growth

strategy paves the way for improved shareholder returns.

Our achievements are only possible thanks to our

exceptional people. I would like to sincerely thank

every member of the Persimmon team for their dedication,

expertise and commitment. I am proud to work alongside

so many industry-leading experts and committed

colleagues. Their efforts and passion are fundamental

to our success, delivering value for shareholders and

helping to build thriving communities across the UK.

Trading performance

Our 2025 results demonstrate the success of the strategy

to position the business for growth, despite a challenging

market backdrop. We delivered 11,905 new homes in

the year (2024: 10,664) and grew our net sales rate

excluding bulk by 4% year on year to 0.59 per outlet

per week (2024: 0.57). We achieved a further 0.11 per

outlet per week contribution from bulk sales (2024: 0.13),

lower than the prior year reflecting the November

Budget’s widely documented effect on the broader

BTR market. Our continued investment in sales and

marketing helped to drive increased customer enquiries

and overall sales figures, with both ahead of the prior

year. Private average selling prices on reservations

remained robust, with incentives controlled at c.4.6%

per gross reservation (2024: c.4.5%).

We are pleased to have achieved an underlying operating

margin

of 14.3% (2024: 14.1%). Our vertical integration

and operational efficiencies enabled us to mitigate the

substantial impact of embedded build cost inflation

coming into the year. These unique capabilities have

helped underpin the margin performance and will help

drive further growth.

High-quality land bank and growing outlets

Our land acquisition strategy is founded on disciplined,

targeted assessments to ensure control over our development

pipeline. We carefully select sites aligned with our

growth ambitions, market demand and margin potential.

In 2025 we increased our investment, with net land

spend of £541m, up from £437m in the previous year.

Our improved reputation, including our enhanced

placemaking approach, helped us access more

opportunities, with more promoters and agents working

Our strategy enables us

to build more routes to

more markets to deliver

more homes and

growing returns.

Dean Finch

Group Chief Executive

Persimmon Plc Annual Report 2025 – 13Financial statementsGovernance Other informationStrategic report

positioning by offering innovative shared equity products

to proactively address our customers’ affordability

challenges and make homeownership more accessible

to more people. Alongside our broader sales and

marketing campaigns and disciplined use of tailored

incentives that meet individual customer needs, we

have driven increased interest in our homes. We saw a

21% rise in website visitors, with good interest observed

across all regions in 2025. We will build further on this

progress in 2026, with a new customer website and

marketing platform launched in the first half of the

year. Persimmon is well placed for continued growth.

The relaunch of Charles Church, our premium brand,

has generated real momentum, with completions up

16% in 2025. Customers have embraced our new

house types and enhanced specifications, supporting

the premium pricing Charles Church achieves and

demonstrating the opportunity to drive further growth

in this market segment. Indeed, we closed the year

with 64 Charles Church outlets, up from 48, including

41 dual-branded sites. We achieved both these extra

completions and outlet expansion using our existing

teams and structure, demonstrating the efficiency benefits.

With clear brand distinction, we are expanding into

new regions, actively pursuing both standalone and

dual-branded opportunities. Charles Church is allowing

us to secure land opportunities in new markets we are

unlikely to have otherwise accessed. As well as serving

distinct markets, a dual-branded presence can generate

additional sales for each brand as customers explore

the breadth of homes on offer. Our medium-term target

remains to double Charles Church’s contribution to the

Group and its first bespoke marketing strategy is helping

drive increased interest and enquiries. So far in 2026,

enquiries are up 48% and website visitors are up 127%.

With Charles Church also launching its own new and

enhanced customer website in the coming months,

alongside the marketing platform mentioned above,

we are confident it will continue to drive growth and

enhance returns for the Group.

Our Westbury Partnerships brand is becoming a

trusted partner for institutional investors and registered

providers. Our flexible model lets us match each site to

local demand, whether private homes, affordable

housing or BTR. We have invested in both the homes

we are building, to ensure they efficiently meet the

The Planning and Infrastructure Act passed in December

was a positive step. While it will take time for planning

reforms to take effect, we are proactively shaping our

pipeline, identifying 68 sites for accelerated planning

ofwhich 25 planning applications are expected to

besubmitted by the end of the first quarter. This will

include 300 plots at Dudley, West Midlands and 200

plots at Keynsham, Severn Valley. These sites combined

represent about 13,000 plots to support medium-term

delivery. Following extensive discussions with Government,

we were delighted to see the launch of ‘Phase 2’ of its

‘New Homes Accelerator Programme’. The accelerator

is now more focused on speed, unblocking stalled sites

that can deliver in the short term. We immediately submitted

sites and have identified a longer list of additional

opportunities. We look forward to working closely with

Government to accelerate the opening of new outlets.

Three strong brands providing diversification

Our three-brand strategy – Persimmon Homes, Charles

Church, and Westbury Partnerships – allows us to target

diverse and distinct market segments. This approach

delivered robust growth in 2025, with each brand

delivering more homes than the previous year. Across

all three brands we have invested to enhance the customer

proposition, the quality of the homes we offer and the

efficiency in which we build them. By strengthening

each brand and sharpening their distinct positions in

the market, we have built a platform that not only

supports current performance but also positions us for

sustained progress towards our medium-term ambitions.

Core Persimmon remains our largest brand and the

cornerstone of the Group. In 2025, our outlet network

and sales and marketing initiatives led to a 7% increase

in core Persimmon completions. We continued to invest

in the core Persimmon brand, refining our approach to

placemaking, creating standout developments with

quality street scenes and landscaping. We streamlined

our core product range making them more efficient to

build and harnessing in-house manufacturing capabilities.

By utilising our own bricks, tiles, and timber frames, we

not only enhance supply chain security and accelerate

delivery times but support our margins with estimated

savings of up to £6,000 per plot.

We also invested further in our sales and marketing to

drive customer interest. Core Persimmon is well placed

in the market with private selling prices around 19%

below the market average

. We augmented this market

requirements of these customers, and the relationships

to open up and sustain new market opportunities.

The BTR market continues to offer good opportunities

for capital-efficient sales to our institutional customers.

We increased the number of partners we worked with

in 2025 and introduced new BTR house types – drawing

on our knowledge of investors’ requirements – to meet

their needs efficiently. This improved offering and expanded

partner network, led to a 21% increase to 1,758 in the

homes we delivered for our partners (2024: 1,456).

Despite some partners pausing investment decisions

ahead of the Budget, all planned deals completed in

2025. This budget-related pause is reflected in our

current forward order book. Investor interest remains

high, however, and we are working closely with a

number of partners to complete deals shortly. Persimmon’s

national footprint and single-family housing expertise

position us well to capitalise on this market, particularly

where we have larger sites that offer the opportunity of

mixed-tenure development, enabling us to maximise

value and returns.

Completions to housing associations rebounded

strongly in the second half and in total we delivered

2,075 homes for our partners, up 31% on the prior

year (2024: 1,589). Delivery was particularly strong

in the fourth quarter of 2025 and consequently we do

not anticipate this level of growth to be replicated in

2026. Our relationships across the housing association

market remain strong and we are focused to ensure we

meet partner requirements, especially for the forthcoming

Social and Affordable Homes Programme to maximise

future opportunities.

With three distinct brands serving unique customer

segments and market channels, we have built a dynamic

platform to drive our medium-term ambitions. Alongside

our growing outlets we are building more routes to

more markets to deliver more homes and growing returns.

Build quality and customer service

At Persimmon, our commitment to build quality and

customer service is central to our business operations.

During 2025, we delivered a step change in growth,

without compromising on the consistently high standards

we have achieved in recent years. This provides a strong

platform to meet our medium-term targets. By combining

strong growth with a reputation for consistent build

quality and service excellence we will meet customers’

Group Chief Executive’s statement continued

with us. We had some excellent land opportunities in

2025 and as a result secured 16,309 new plots at

strong embedded margins, achieving a replacement

rate of 137%. This underpins our confidence in our

medium-term targets, as this land comes into production

and older land acquired before the spike in build cost

inflation begins to unwind. Overall, our total land

holdings increased to 84,879 plots giving us good

visibility over our future pipeline (2024: 82,084).

Our proactive approach to planning is removing barriers

to consent and securing more approvals, converting our

sustained land investment into a growing number of active

sites. We opened 103 new outlets in the year (2024: 103

outlets) and finished the year with 277 outlets, up 3%,

while the sector reduced outlet numbers by c.2%

We obtained detailed or reserved matters planning for

12,815 plots in 2025, 108% of our completions for the

year. Examples include at Madgwick Lane, Chichester

and Hull Road, York, where we combined enhanced

placemaking with proactive engagement to navigate

local planning and stakeholder challenges to secure

approvals and outlet openings. These successes are

helping to develop a strong pipeline, with plans for

more than 100 outlet openings in 2026. We expect to

see net growth in outlets this year and remain on track

to meet our target of at least 300 outlets.

Our strategic land portfolio is already a strong asset

for our business, making an important contribution to

our current growth. Over one third of the plots we secured

detailed planning approval for in 2025 came from our

strategic land bank. It is also an important asset to

support our medium-term growth ambitions and we

have therefore invested to strengthen our strategic

landportfolio further. During the year, we acquired

theMidlands-based land promoter Lone Star Land

and have already identified significant new opportunities

amongst their portfolio. We have also invested in

ourin-house strategic land teams across Persimmon,

broadening our reach and influence in the market.

Overall, we added c.10,000 potential plots to our

strategic land bank in 2025 and ended the period

with over 77,000 potential plots up from c.70,000

potential plots, equivalent to 10% growth. Our ability

to choose the right locations and navigate the planning

process is central to our growth strategy.

High-quality land bank and growing outlets

continued

Financial statementsGovernance Other informationStrategic report14 – Persimmon Plc Annual Report 2025

Innovation and vertical integration

Our vertically integrated model has continued to

benefit the business, with increased production at

Brickworks, Tileworks and Space4 to meet the demands

of our expanding business. Further investment across

all three facilities will also play a pivotal role in supporting

our growth ambitions. Our in-house materials are now

the preferred choice throughout the business. This

approach delivers significant advantages in cost,

efficiency and quality, ensuring reliable supply and

consistent high standards, allowing us to deliver

affordable high-quality homes for our customers.

To meet the increasing demand for our next-generation

brick during the year, we implemented a third shift at

the Brickworks facility. Brickworks delivered c.60 million

bricks, 23% more than in 2024, to 258 sites during

2025. With the factory now operating, 24 hours a day

and seven days a week, plans are in place to further

expand capacity in 2026 by introducing an additional

production line, opening in 2027.

Our own tile is now our preferred option for every

region, except where local planning rules require an

alternative product. Demand again grew in 2025, with

c.12 million tiles, 54% more than in 2024, delivered to

282 sites. We anticipate adding a third shift this year,

further enhancing cost efficiency.

The new state-of-the-art automated timber frame line

at our Space4 factory became fully operational in the

second half of 2025 and has improved both the efficiency

of the factory as well as the consistent quality of the

product being delivered to site. We are also the first

developer to install an automated roof truss line. This

truss line gained certification in November 2025 and

began delivery to site in January 2026. The investment

made in the factory reflects the significant growth in

demand for the product. Space4 supplied 3,666 timber

frame products as well as 964 room-in-roof kits, a

36% increase in delivery during 2025. By the end of

2026 all of our regions outside of Scotland (where we

use third-party suppliers), will be taking product from

our Space4 factory. We continue to see the use of

timber frame as key to delivering future growth and to

improving on-site efficiency, by not only shortening

build times but also reducing demand for scarce labour.

We are looking to innovate and further increase our

use of AI, including seeking out new opportunities to

leverage advanced tools for compliance, site management,

and land assessment. By exploring AI-powered insights,

we aim to strengthen decision making and enhance

operational efficiency across our core business areas.

To support this, we have launched a pilot Persimmon

Data & AI Academy to build practical, immediately usable

data and AI capability across the organisation. The

first cohort of colleagues will begin their training in March.

Current trading and outlook

Market conditions have been supportive – including

greater mortgage availability and real wage growth –

which when combined with our increasing outlet base,

has underpinned our growth. We welcome the beneficial

changes to the planning environment that the Government

has introduced, which should support further outlet

growth over time. Our diversified value-positioned

brands and strong platform position us well to meet

increasing demand supported by our sustained

investment in land, continued success in planning,

vertical integration and commitment to quality and

customer service.

In the first nine weeks of this year our net private sales

rate per outlet per week was 0.73, up 9% compared

tothe same period last year (2025: 0.67). The private

average selling price in the order book is up 6%, which

combined with increased reservations has resulted in

a9% increase in our private forward sales position

to£1.25bn as at 1 March compared with a year ago

(2025: £1.15bn). Total forward sales as at 1 March

have increased by 6% to £1.80bn (2025: £1.69bn).

With stable build cost inflation and our unique vertical

integration, we are managing ongoing cost pressures

effectively while investing in further capacity and

innovation. This, together with our investment in land

and plans to open more than 100 outlets in 2026,

positions us well. We are monitoring the impact the

conflict with Iran could have on our markets in 2026.

Within private sales, we have not assumed mortgage

rate reductions or the introduction of any government

demand stimulus, with the most important short-term

factor being any changes to customer sentiment in

response to increased uncertainty. However, sales in the

opening weeks of the year have been strong and our

BTR and partnerships customers have funds mostly in

place for our planned delivery this year. The potential

impact of the current uncertainty on build cost inflation is

not yet known, but we would anticipate limited impact

on the current year due to our existing agreements with

key suppliers and our accelerated production levels

coming into 2026. More widely, our increased banking

facilities provide additional balance sheet strength.

Assuming the conflict with Iran and its impact is short,

we expect to deliver between 12,000 and 12,500

completions in 2026, with underlying operating

profittowards the upper end of current consensus

Ourinvestment for growth at this point in the cycle

willresult in increased finance costs and therefore

underlying profit before tax is expected to be in line

withcurrent consensus

The enduring aspiration for home ownership remains

strong and provides the opportunity for growth into

themedium term. Continued strategic investment in the

business and our self-help strategy over recent years

has positioned us well for future expansion. This investment,

along with capital allocation choices as we progress

our building safety remediation work, will enable us

toconvert market opportunities into sustainable growth

in support of our medium-term ambitions to deliver an

underlying operating margin and ROCE of 20% and

increased returns for our shareholders.

Dean Finch

Group Chief Executive

9 March 2026

Footnotes:

Stated before net exceptional charge (2025: £44.9m; 2024: £34.4m),

and goodwill impairment (2025: £3.4m; 2024: £1.6m). Margin

based on new housing revenue (2025: £3.31bn; 2024: £2.86bn).

2. HBF industry data based on 12 months to 31 December 2025.

3. Based on the Persimmon Homes private average selling price of

£286,145 for the year to 31 December 2025 compared with the

national average selling price for newly built homes sourced

from the UK House Price Index as calculated by the Office for

National Statistics from data provided by HM Land Registry.

4. The Group participates in the House Building Federation

(HBF)’s Five Star Scheme. The HBF star ratings are based on

results from the National New Homes Customer Satisfaction

Surveys run by the NHBC. From the 2024/2025 survey year

the HBF has moved to a combined mean score (not percentage

satisfied) for build quality and service after score based on the

8-week and 9-month survey responses. In the first year, a score

of greater than 4.15 is equivalent to five-star status.

5. Company compiled full year 2026 consensus of 12,136

homes, an underlying operating profit range of £486m to

£517m and underlying profit before tax mean of £470m.

aspirations, increase the number investors, landowners

and suppliers who want to partner with us and further

enhance our attractiveness as an employer of choice.

Our combined quality and service HBF score ended the

survey year at 4.30

and continues to track at five-star

homebuilder status, reflecting our ongoing focus on the

quality of our customers’ experience. We are

delighted to have maintained our five-star HBF rating,

awarded to us for the fourth year running in March 2025.

Delivering this while growing the business demonstrates

the embedded culture of consistently delivering

high-quality homes. This is further reflected in our

Trustpilot scores, which remain at their ‘Excellent’

rating with 4.6 stars for both Persimmon Homes and

Charles Church (December 2024: Persimmon 4.5 star;

Charles Church 4.4 star).

We also sustained our improvements in build quality,

with reportable items continuing to track at low levels

at 0.29 (2024:0.26). Our increased investment in site

work in progress alongside more accurate and efficient

build programmes has meant we built 22% more homes

on average per week than in the prior year. Our improved

build programmes also ensure a more rigorous alignment

to our key stage inspections process, providing build

quality checks and reducing the need for and costs of

rework. This has been further strengthened by investment

in more Independent Quality Control officers and more

training for our people. These initiatives led to a 310bps

improvement in our NHBC Construction Quality Review

scores to 92.6% (2024: 89.5%), which is a great achievement.

We are continuing to invest in our people, systems and

processes, to drive further progress. The continued roll

out of digitised systems is helping to drive further efficiency

and quality benefits. A materials management system

that will help automate call-offs in line with build

programmes, will help manage cash flow and reduce

lost, stolen and damaged costs. Granular analysis of

our build programme progress, measuring site-level

labour rates and plot-level progress, is allowing a

greater focus on areas for improvement and best

practice sharing to secure further improvements in

ourefficiency. Tools, platforms and processes such

asthese are crucial to us driving the growth necessary

to meet our medium-term targets efficiently.

Persimmon Plc Annual Report 2025 – 15Financial statementsGovernance Other informationStrategic report

Our strategy

Our five key priorities provide the framework

forleveraging our sector-leading land holdings

and strong operational capabilities.

Our land holdings and pipeline of outlets provide us with a strong platform

to deliver disciplined growth, leveraging our operational capabilities.

We continue to focus on what is within our control – growing outlets,

developing our brands and investing in vertical integration. We are

advancing our systems and processes to improve our product for our

customers while building high-quality, safe and sustainable homes.

Strategic progress

NHBC

reportable items

0.29

SAP rating¹

average on ourhomes

Embedded in landbank

c.28%

gross margin

1. The average standard assessment procedure (‘SAP’) rating of our new

homes; equivalent to EPC ‘B’ rated.

KEY PRIORITIES

Build quality and safety

Progress in 2025

Maintained high levels of build quality, reflecting significant

improvements since the introduction of The Persimmon Way

with NHBC Construction Quality Review scores at 92.6%.

NHBC Reportable Items maintained at low levels; 0.29 per

inspection in 2025.

Expanded training and digital tools for site teams, enhancing

operational efficiency.

Continued strong performance in safety reviews and

independent inspections, supporting our mission to deliver

trusted, high-quality homes.

Future focus

Advance systems and processes to further improve

productquality.

Innovate in modern construction methods and

verticalintegration.

Maintain leadership in building safety and sustainability.

Link to principal risks

Supply chain disruptions may impact material availability

andbuild schedules.

Regulatory changes could require rapid adaptation in safety

and quality standards.

Market volatility may affect investment in new technologies.

Maintaining consistent quality across expanding operations

remains a challenge.

Environmental risks and sustainability goals need

continualfocus.

Read more on pages 73 to 76

Customers at the heart

ofourbusiness

Progress in 2025

Delivered outstanding customer experience, with HBF five-star

rating for the fourth consecutive year in 2025 and NHBC

customer recommend a friend at 93.5%.

Trustpilot scores improved to 4.6 for Persimmon Homes

(2024: 4.5) and 4.6 for Charles Church (2024: 4.4).

Enhanced sales schemes and incentives, including New Build

Boost and Rezide.

Continued development of all three brands, expanding

customer base and improving digital journey.

Future focus

Further enhance customer experience.

Strengthen brand presence and marketing initiatives.

New website and customer CRM to be launched in 2026.

Maintain customer satisfaction ratings.

Link to principal risks

Market fluctuations affecting customer demand

andaffordability.

Changes in customer expectations and preferences.

Maintaining high levels of customer satisfaction.

Regulatory changes impacting customer service processes.

Read more on pages 73 to 76

Financial statementsGovernance Other informationStrategic report16 – Persimmon Plc Annual Report 2025

Disciplined growth: high-quality

landinvestment

Progress in 2025

Strengthened land bank and increased sales outlets,

supporting growth despite mixed market conditions.

Average selling price, completions, planning approvals,

andforward order book all up year on year driven by quality

locations and outlet growth.

Disciplined investment in land complemented by continued

industry-leading planning success, securing new site openings.

Three-brand strategy and marketing investment further

supporting growth, with 11,905 completions in 2025.

Future focus

Continue disciplined investment in land and planning to

expand outlet base.

Invest in marketing and sales processes to drive growth.

Monitor market conditions and adapt strategy to

maintainmomentum.

Target expansion to 300 outlets in the next 12–24 months.

Link to principal risks

Macroeconomic volatility and interest rate changes may

affectgrowth.

Planning system challenges could delay site openings.

Competition for land and resources.

Climate change impacts could affect land availability and cost.

Regulatory changes affecting investment strategy.

Read more on pages 73 to 76

Industry-leading

financialperformance

Progress in 2025

Operating profit improved, reflecting disciplined cost control

and efficiency gains.

Revenue from new housing increased to £3.31bn, 20bps

improvement in underlying housing operating margin.

Improved ROCE to 11.7%.

Cash flow from operating activities supporting investment,

firesafety remediation and dividends.

Future focus

Sustain tight cost controls and efficiency improvements.

Enhance vertical integration for greater efficiency and supply

chain security.

Explore new opportunities for faster build times and

qualityenhancements.

Maintain strong cash flow and financial resilience.

Deliver high-quality, affordable homes while securing

industry-leading returns.

Link to principal risks

Cost inflation, regulatory changes and new levies impacting

sector-wide profitability.

Market volatility affecting sales and profitability.

Maintaining financial resilience in uncertain conditions.

Read more on pages 73 to 76

Supporting sustainable communities

Progress in 2025

Average SAP rating of homes of 89 (‘B’ EPC rating).

Placemaking framework delivering high-quality design

andgreen spaces, creating sustainable communities.

Invested £484m in local communities, and supported

c.23,500 jobs across the supply chain.

Operational waste recycling rate maintained at 98%.

Continued progress on legacy building remediation,

withworks completed or started on 77% of developments.

Future focus

Continue to improve the energy efficiency of our homes,

andreduce living costs for customers.

Deliver our net zero carbon transition plan.

Invest in local communities through our community champions

and outreach programmes.

Leverage our supply chain engagement to increase

sustainability resilience and innovation.

Enhance biodiversity and green infrastructure in

newcommunities.

Link to principal risks

Minimise climate risk by reducing carbon emissions

fromourbusiness activities.

Supply chain challenges may impact delivery

ofsustainabletechnologies.

Maintaining progress on legacy remediation.

Read more on pages 73 to 76

Persimmon Plc Annual Report 2025 – 17Financial statementsGovernance Other informationStrategic report

New housing revenue

£3,312m

+16%

Underlying profit

beforetax

£446m

+13%

Underlying new housing

operatingmargin

14.3%

+20bps

Forward sales

at 31 December

£1,173m

+2%

Key priorities

Build quality and safety

Customers at the heart of our business

Disciplined growth: high-quality land investment

Industry-leading financial performance

Supporting sustainable communities

Read more on pages 16 and 17

Key performance indicators

FINANCIAL

Definition

Revenue generated from the legal completion

ofnew homes to our private customers and

housing association partners.

Why we measure it

Strength of housing revenue is an important

measure of the success of our strategy. Our

range of house types and emphasis on quality

homes at a range of price points put us in a

strong position in our markets.

Links to key priorities

Definition

Anticipated revenue for future home sales to

private customers and contracts with housing

associations that have yet to legally complete.

Why we measure it

Forward sales give us an indication of the

level of demand we have for homes going

into future periods. This allows us to ensure we

are controlling work in progress to meet demand

andmaintain strong financial discipline.

Links to key priorities

Definition

Based on operating profit before net exceptional

charge and goodwill impairment (underlying

operating profit) and new housingrevenue.

Why we measure it

We have a strong track record of delivering

industry-leading returns and we monitor our

performance to ensure continued discipline

inour approach.

Links to key priorities

Definition

Stated before net exceptional charge

andgoodwillimpairment.

Why we measure it

Our disciplined land replacement processes,

cost management and efficiency programmes

aim to generate superior returns that provide

a platform for further investment in the Group’s

resources to support our future growth.

Links to key priorities

2023

2024

2022

2021

2,538

2,863

3,696

3,450

Read more on page 22 Read more on page 15 Read more on page 22 Read more on page 23

1,060

1,146

1,040

1,624

14.0

14.1

27. 2

28.0

359

395

1,012

973

2025 3,312 1,173 14.3 446

2023

2024

2022

2021

2025

2023

2024

2022

2021

2025

2023

2024

2022

2021

2025

Financial statementsGovernance Other informationStrategic report18 – Persimmon Plc Annual Report 2025

Net assets per share

1,127p

+3%

Return on average

capitalemployed

11.7%

+60bps

Net cash

£117m

-£142m

Free cash generation

£56m

+£16m

Read more on page 24 Read more on page 24 Read more on page 23 Read more on page 23

420

259

862

1,247

10.5

11.1

30.4

35.8

1,070

1,096

1,077

1,136

(173)

373

767

Definition

Net cash flow before financing activities.

Why we measure it

We use this to measure balance sheet strength

and liquidity. Ensuring we have an appropriate

capital structure to support the business

through the cycle is keyto our success.

Links to key priorities

Definition

12-month rolling average calculated on

underlying operating profit and total capital

employed. Capital employed is the Group’s

net assets less cash and cash equivalents plus

land creditors.

Why we measure it

Our focus on return on average capital

employed allows us to measure the efficiency

ofour use of capital. We will continue our

disciplined approach to working capital

management to meet market demand.

Links to key priorities

Definition

Calculated as the total value of the Group’s

assets minus total liabilities divided by the

number of shares in issue.

Why we measure it

Net asset value per share movement is an

indicator of thevalue that we are delivering

for our shareholders. Wehave a good track

record of delivering strong returns for our

shareholders through the cycle.

Links to key priorities

Definition

Cash and cash equivalents, bank overdrafts

andinterest bearing borrowings.

Why we measure it

Ensuring we have an appropriate capital

structure to support the business through the

cycle is key to our success.

Links to key priorities

56 117 11. 7 1,127

2023

2024

2022

2021

2025

2023

2024

2022

2021

2025

2023

2024

2022

2021

2025

2023

2022

2021

2024

2025

Persimmon Plc Annual Report 2025 – 19Financial statementsGovernance Other informationStrategic report

Number of work-related

incidents (’RIDDORs’)

3.8

+1.6%

Quality

91.4%

-210bps

Customer

satisfaction score

93.5%

-250bps

Land holdings

84,879

+3%

Key priorities

Build quality and safety

Customers at the heart of our business

Disciplined growth: high-quality land investment

Industry-leading financial performance

Supporting sustainable communities

Read more on pages 16 and 17

Key performance indicators continued

NON-FINANCIAL

Definition

The number of plots we have either owned

orunder control to support our future

homedelivery.

Why we measure it

The Group’s high-quality land holdings with

industry-leading margins are a key strength of

the business. By monitoring them we can track

our future pipeline of work.

Links to key priorities

Definition

Based on the number of customers who would

recommend their builder to a friend in the

National New Homes Survey, run by the HBF.

Why we measure it

We put our customers at the heart of our

business and ensuring they are satisfied is key

to the Group’s success. We were delighted to

be awarded HBF five-star builder status again

in 2025. From 2026, we will report on the

HBF’s combined score which is the new measure

for benchmarking housebuilder star ratings.

Links to key priorities

Definition

Based on how satisfied customers are with

thequality of their new home in the National

New Homes Survey, run by the HBF.

Why we measure it

Our ethos is to ‘build right, first time, every

time’. Monitoring our performance is key to

building consistently high-quality homes for

our customers.

Links to key priorities

Definition

Reportable accidents, RIDDORs, reported

per 1,000 workers in our housebuilding

operations (including, where relevant,

thosereported by our subcontractors).

Why we measure it

The safety of our employees, subcontractors

and customers is the number one priority for

ourbusiness.

Links to key priorities

82,235

82,084

87,19 0

88,043

Read more on pages 14, 16, 23 and 24 Read more on pages 15, 16 and 52 Read more on pages 15 and 16 Read more on pages 45 to 47

2023

2024

2022

2021

92.9

96.0

90.6

92.0

89.6

93.5

86.6

87.9

2.8

2.2

3.6

4.0

84,879 2025 93.5 91.4 3.8

2023

2024

2022

2021

2025

2023

2024

2022

2021

2025

2023

2024

2022

2021

2025

Financial statementsGovernance Other informationStrategic report20 – Persimmon Plc Annual Report 2025

Absolute Scope 1 and 2

carbon emissions (tonnes

e market based)

16,938

Read more on pages 30 to 39

21,973

20,306

25,017

26,447

Definition

The amount of carbon we emit from using

energy in our own activities including offices,

manufacturing businesses, construction sites and

business travel. Energy sources include diesel,

petrol, LPG, kerosene, gas and electricity.

Why we measure it

We are committed to reducing our carbon

emissions, ensuring we meet our approved

science-based targets, and contribute to

achieving the Government’s long-term net

zero carbon goal.

Links to key priorities

2023

2024

2022

2021

2025 16,938

1. Based on new housing revenue

(2025:£3,312.0m; 2024: £2,863.3m)

and underlying operating profit

(2025:£472.1m; 2024: £405.2m)

stated before net exceptional charge

(2025: £44.9m; 2024: £34.4m) and

goodwill impairment (2025: £3.4m;

2024: £1.6m).

2. Stated before net exceptional charge

(2025: £44.9m; 2024: £34.4m) and

goodwill impairment (2025: £3.4m;

2024: £1.6m). Profit before tax after

net exceptional charge and goodwill

impairment is £397.3m (2024: £359.1m).

3. 12-month rolling average calculated

on underlying operating profit and

total capital employed (including land

creditors). Underlying operating profit

is stated before net exceptional charge

(2025: £44.9m; 2024: £34.4m) and

goodwill impairment (2025: £3.4m;

2024: £1.6m).

NEW BUILD BOOST

HELPSCOUPLE BUY

THEIRFIRST HOME

Katy and Chris Marshall’s journey illustrates the transformative impact of Persimmon’s

New Build Boost product. After years of instability and 14 moves due to rising rents and

insecure tenancies, the couple discovered Persimmon’s scheme while searching for a new

build home. The interest-free equity loan enabled them to purchase a two-bedroom

house in Selsey with a manageable deposit and fixed payments, providing long-term

security. Persimmon’s innovative product not only helped the Marshalls escape the rental

cycle, but also offered peace of mind and a stable future for their family, demonstrating

the real-world value of tailored homebuying solutions.

Persimmon Plc Annual Report 2025 – 21Financial statementsGovernance Other informationStrategic report

Financial review

The Group generated total revenue

of £3.75bn (2024: £3.20bn), with

new housing revenue up 16% at

£3.31bn (2024: £2.86bn).

In total, the Group delivered 11,905 new homes in

2025, up 12% on the prior year (2024: 10,664), at

ablended average selling price up 4% at £278,203

(2024: £268,499).

Of these, 9,830 homes were delivered to private

customers, an increase of 8% on last year (2024: 9,075)

and representing 83% of total completions (2024: 85%).

The private average selling price of £301,392 was up

5% on the prior year (2024:£287,162) reflecting an

increase in delivery from Charles Church and the strength

of the market in some of our regions, partially offset by

an increase in the number of plots sold to investors.

During the year, we completed the sale of 1,758

homes to investors, up 21% from the 1,456 delivered

last year. Our ongoing focus on strengthening strategic

partnerships has contributed to growth in this key

market segment. As some of our partners delayed

investment decisions ahead of the November Budget,

ourforward BTR order book was reduced coming

into2026. Weremain confident that investor sales

willcontinue tobe an important market for Persimmon.

The Group delivered 2,075 new homes to housing

associations, up 31% on the prior year with particularly

strong delivery in the fourth quarter (2024: 1,589).

Asa result, we would expect a similar number of

homes to be delivered in 2026 with over 80% of

2026delivery already secured. The average selling

price of £168,347, was 4% higher than the prior year

(2024:£161,916), reflecting the geographic mix and

size of properties.

The Group’s performance continues to be supported

by our high-quality land portfolio, with land cost

recoveries

of 11.5% of new housing revenue for the

year (2024: 11.9%). This decrease in the year reflects

the mix of completions.

The Group’s underlying gross profit

for the year

increased by 13% to £656.3m (2024: £582.4m).

TheGroup’s reported gross profit for the year is

£616.5m (2024: £580.4m) after exceptional items,

asdescribed below. Our underlying gross margin

reduced to 19.8% (2024: 20.3%), partly reflecting

thehigher proportion of BTR and housing association

completions within the year and the impact of embedded

build cost inflation.

The Group has maintained its focus on cost control

andwith the benefit of greater volume delivery has

been able to increase its operating margin in the year.

Underlying operating profit

for the Group increased

17% to £472.1m (2024:£405.2m), generating an

underlying operating margin

of 14.3% (2024: 14.1%).

On a reported basis, operating profit increased 15%

to £423.8m (2024: £369.2m) including the net

exceptional charge described below.

In August we sold FibreNest, our non-core broadband

service, to BUUK Infrastructure. This allowed us to use

the proceeds to invest further in our growth strategy

asset out in March 2025 and eliminates the requirement

for further investment in FibreNest. Under BUUK’s

ownership, FibreNest will offer improved choice

forcustomers, with access to up to 18 internet

serviceproviders.

The Group has reported a net exceptional charge

of£44.9m (2024: £34.4m). This comprises a net

exceptional charge within gross profit of £39.8m

(2024: £2.0m), relating to anticipated costs for the

removal of combustible cladding and other building

safety remediation works (see below). Additionally,

afurther exceptional charge of £5.1m has been

recognised within operating profit, reflecting Persimmon’s

£15.2m voluntary contribution to the Government’s

affordable homes programme following the closure

ofthe CMA investigation (see below) and associated

fees of £1.0m, partially offset by the £11.1m profit

realised from the disposal of FibreNest. These items

are classified as exceptional due to their non-recurring

nature. Further details can be found in note 6 to the

financial statements.

DISCIPLINED

INVESTMENT

DRIVINGGROWTH

The Group’s Capital

Allocation Policy is

toinvest in future

growth through

disciplined expansion

of our land portfolio

while maintaining

astrong balance

sheetand delivering

sustainable returns

toshareholders.

Andrew Duxbury

Chief Financial Officer

Financial statementsGovernance Other informationStrategic report22 – Persimmon Plc Annual Report 2025

Net finance cost for the year was £26.5m (2024: £10.1m)

being a result of lower average cash balances, increased

utilisation of our £700m Revolving Credit Facility,

£12.0m of imputed interest payable on land creditors

(2024: £3.8m) and £7.0m of imputed interest payable

on the legacy buildings provision (2024: £7.4m).

The Group generated an underlying profit before tax

of £445.6m (2024: £395.1m), and a reported profit

before tax of £397.3m (2024: £359.1m).

The Group has an overall tax charge of £111.6m for

the year (2024: £92.0m) and an effective tax rate of

28.1% (2024: 25.6%), marginally lower than the standard

rate of 29% (including both corporation tax and the

Residential Property Developers Tax) (2024: 29.0%).

Underlying basic earnings per share

for the year was

100.7p, 9% higher than the prior year (2024: 92.1p).

Reported basic earnings per share was 7% higher

thanlast year at 89.3p (2024: 83.6p).

Underlying return on average capital employed (‘ROCE’)

including land creditors was 11.7%

, 60bps higher

than the prior year (2024: 11.1%), reflecting the increase

in underlying operating profit

in the year. ROCE excluding

land creditors was 13.1%

compared with 12.2% at

31December 2024. On a statutory basis, ROCE

including land creditors was 10.5%

(2024: 10.1%).

Building safety

The Group has committed to make progress on its

building safety remediation programme, as well as

investing in future building quality. Our proactive work

has been recognised through our status as a Building

aSafer Future Charter Champion.

Across our Legacy Building Programme, we continue

our proactive approach of working with management

companies, factors (in Scotland) and their agents to

carry out necessary remediation as soon as possible.

Of the total of 87 developments in our programme,

43(49%) have already had any necessary works

completed. Of the remaining 44 developments,

24currently have work on site and 20 are at varying

stages of pre-tender, live tender, progressing to contract

or agreed contract and works starting very soon.

Strong balance sheet

andlow leverage

Maintain a strong balance sheet

through the cycle and prioritise

building remediation works

Investment in growth

andcapabilities

Investment in new and existing

sitesto continue outlet growth

M&Aonly where it meets strict

financial criteria

Sustainable

ordinarydividend

Well covered by profits

overthecycle

Return any excess capital

to shareholders

Special dividend

orsharebuybacks

Capital allocation

Aswe actively progress the programme, the number

ofdevelopments at or before the tender stage has

reduced to eight. With over 90% of developments fully

tendered, this gives some reassurance over our future

cost estimates. The number of developments on site

orcompleted has increased 10% to 67. For further

information please see note 23.

During the year, the provision has been increased by

£39.8m, following a review of the projected costs to

complete rectification work, along with the identification

of four additional developments requiring remediation,

offset by works assumed by, or recoveries secured

from, historical subcontractors. We continue to pursue

cost recoveries from third parties. Due to the non-recurring

nature of these changes, they have been disclosed as

exceptional items to support the understanding of

financial performance and improve the comparability

between reporting periods.

We utilised £56.1m of the provision in the year, with

total aggregate expenditure now over £175m, whilst

afurther £7.0m of imputed interest was charged to the

Income Statement through finance costs. The remaining

provision at 31 December 2025 was £226.0m, a

£9.3m reduction on the position as at 31 December 2024.

The next 18 to 24 months are projected to be the peak

period of cash expenditure on this programme.

Competition and Markets Authority (‘CMA’)

On 9 July 2025, the CMA announced its intention to

close its investigation on whether Persimmon, along

with six other UK housebuilders, had exchanged

competitively sensitive information, accepting voluntary

commitments from all parties. The CMA has not made

any findings that Persimmon Plc and its group companies

has infringed UK competition law and the voluntary

commitments offered do not constitute an admission

ofany wrongdoing. As part of these commitments,

Persimmon made an ex-gratia financial contribution

of£15.2m to the Government’s Affordable Homes

Programme in January 2026. This has been

accountedfor in the period as an exceptional cost.

Balance sheet

Total equity increased by £0.1bn to £3.61bn at

31December 2025 (2024: £3.51bn). This is after

returning £192.1m of capital to shareholders through

afinal dividend of 40p per share in respect of the

2024 financial year and an interim dividend of 20p

per share for the 2025 financial year. Retained earnings

increased to £3.04bn (2024: £2.94bn). Reported net

assets per share of 1,127p represents a 3% increase

from 1,096p at 31 December 2024.

Land holdings

A core strength of the business remains its disciplined

approach to land replacement. Over the last three

years we have maintained our selective land purchase

strategy, positioning us well for the future as we look

togrow our outlet position. At 31 December 2025, we

had 277 outlets, 3% higher than 31 December 2024,

and remain on track to increase outlets in 2026 as we

position the business for further growth.

At 31 December 2025, the carrying value of the

Group’s land assets increased by 14% to £2.59bn

(2024: £2.27bn), reflecting continued investment in

the Group’s future and our ongoing focus on converting

owned land with outline planning permissions to

implementable consents. The Group’s land cost

recoveries for the year of 11.5%

of new housing

revenue is 40bps lower than the prior year, reflecting

the mix of completions in the year, and remains an

excellent position.

During the year, the Group brought 16,309 plots

intoits owned and under control land holdings

across71 locations throughout the country, equivalent

to a replacement rate of 137%. 1,639 plots were

converted from our strategic land portfolio, which

continues to be a strength for the business. In August

2025, we bought a Midlands-based land promoter,

Lone Star Land, further strengthening our strategic land

capabilities. Further detail is provided in note 7.

At the end of the year, the Group had owned and

under control land holdings of 84,879 (2024: 82,084)

representing approximately seven years of forward

supply at 2025 volumes. Owned plots totalled 70,236

(2024: 69,189) of which 40,215 have a detailed

implementable planning consent, providing excellent

visibility (2024: 40,430). The Group’s owned land

holdings represent approximately six years of forward

supply at 2025 volumes, with an overall pro-forma site

gross margin

of c.28% (2024: c.29%), slightly lower

year on year, partly due to fewer conversions from

high-margin strategic land in the period. The land cost

to revenue ratio within the owned land bank of 12.8%

(2024: 11.9%) reflects both the lower conversion from

strategic land, the purchase of more serviced land in

the period, where infrastructure costs (reflected in

build costs) are expected to be lower and weighting

towards land purchases in the south.

Persimmon Plc Annual Report 2025 – 23Financial statementsGovernance Other informationStrategic report

Land holdings continued

We have made some excellent additions to our owned

land bank during the period, and together with our

controlled and strategic land pipeline, we remain

confident in our ability to deliver our medium-term

growth targets.

In addition to its owned plots, the Group controls

14,643 plots (2024: 12,895) through exchanged

contracts. These contracts to acquire the site will be

completed once all outstanding unfulfilled planning

conditions have been satisfied. Cash invested in these

under control plots is limited to deposits paid on the

exchange of contracts and fees associated with

progressing the sites through the planning system.

During the year, the Group secured detailed or reserved

matters planning for 12,815 plots (2024: 13,064).

The Group incurred net land spend of £541.3m

during2025 (2024: £437.0m), including £211.2m of

payments in satisfaction of deferred land commitments

(2024: £210.6m).

In 2025, the Group acquired interests in a further c.10,000

potential plots of strategic land opportunities resulting

in a total of over 77,000 plots at 31 December 2025

(2024: c.70,000 plots). This will provide a long-term

supply of forward plots for future development by the Group.

Work in progress

At 31 December 2025, the Group had work in progress

of 4,114 equivalent units of new homes under construction,

12% higher than the position we entered the year with

(2024: 3,684) as we position the business for further

growth in 2026. On average, overall weekly build

rates tracked 22% higher in the year, with an average

of 245 equivalent units of build per week, compared

to 201 per week in 2024.

Our work in progress investment at 31 December 2025

of £1.63bn was up 15% on the prior year (2024: £1.43bn).

This reflects the anticipated growth in completions and

investment in expanding our outlet base in 2026, along

with accelerating our build programmes to drive continued

high standards of quality and customer service.

As at 31 December 2025, we owned 894 part

exchange properties (2024: 739 properties) at a

value of £198.8m (2024:£154.4m). Part exchange

continues to be a key sales incentive for our customers,

and we are progressing sales of part exchange

properties promptly at around expected values.

Cash generation and liquidity

During the year, we continued our targeted investment

into the business to enhance quality, efficiency and

returns as we build a more sustainable business

andposition for further growth. Our long-standing

financial discipline will continue to maintain our

robustbalance sheet.

At 31 December 2025, the Group had a cash balance

of £117.0m (2024: £258.6m) with land creditors of

£623.4m (2024:£423.2m), of which c.£355m are

expected to be settled during 2026. This increase in

land creditors is in line with our strategy to increase

our outlet base as we continue to target reaching

over300 outlets.

The Group generated £487.9m of cash from operating

activities in the year (2024: £419.6m), before investing

£349.4m in working capital (including a £590.1m

increase in inventories offset by a £321.4m increase

intrade and other payables), the net receipt of £68.1m

in relation to the disposal of FibreNest and returning

£192.1m of capital to shareholders through dividend

payments (2024: £191.8m).

The Group’s shared equity loans have generated

£4.0m of cash in the year (2024: £4.6m). The

carrying value of these outstanding shared equity

loans, reported as ‘shared equity loan receivables’,

is£25.7m at 31 December 2025 (2024: £29.0m).

On 26 January 2026, the Group agreed an increase

to its secured funding arrangements with the syndicate

of partnership banks.The Group’s existing syndicated

facility of £700m committed to July 2030 was expanded

to £750m and an additional fixed term facility of

£250m was agreed to 31 January 2028, giving

anincreased total secured funding level of £1bn,

supporting the continued investment programme over

the coming years. The extra facilities will allow the

Group to prudently manage growth at this stage

ofthecycle, while maintaining ample headroom.

The Group’s defined benefit pension asset is in line

with last year at £130.7m at 31 December 2025

(2024: £130.7m).

Capital allocation

The Group is creating value by investing in growth.

TheGroup’s Capital Allocation Policy is to invest in

future growth through disciplined expansion of our

land portfolio while maintaining a strong balance

sheet and delivering sustainable returns to shareholders.

For 2025, the Board proposes a final dividend

of 40p per share to be paid on 10 July 2026 to

shareholders on the register on 19 June 2026,

following shareholder approval at the AGM. This

dividend is in addition to the interim dividend of 20p

per share paid on 7 November 2025 to shareholders

on the register on 17 October 2025 to give a total

dividend of 60p per share in respect of the financial

year 2025 (2024: 60p).

As we deliver on our medium-term growth ambitions,

coupled with further progress on our Building Safety

Remediation Programme, we anticipate increasing

ourreturns to shareholders.

2026 outlook

The strong desire for home ownership, together with

our strategic investments, positions us well to deliver

sustainable growth and shareholder returns.

Our current private forward sales position stands at

£1.25bn, a 9% increase year on year (2024: £1.15bn).

With this progress in our forward order book, we are

targeting 12,000-12,500 completions for 2026 assuming

stable market conditions. We are conscious of geo-political

uncertainty and are monitoring the impact this could

have on our markets. Benefiting from our improved

operational capabilities and disciplined investment in

our land holdings, we aim to achieve further growth in

profit and returns. We expect underlying operating

profit to be towards the upper end of the current market

consensus range

and, with increased financing costs

reflecting our investment for growth, underlying profit

before tax is expected to be in line with current market

expectations

The next two years are expected to see peak

expenditure on our building safety remediation

programme, with approximately £100m anticipated

tobe spent in 2026. Our net cash position at the end

of 2026 is currently forecast to be between £100m

netdebt and £100m net cash, reflecting our ongoing

investment for growth.

Andrew Duxbury

Chief Financial Officer

9 March 2026

1. The Group’s total revenues include the fair value of

consideration received or receivable on the sale of part

exchange properties, planning promotion contracts and

income from the provision of broadband internet services.

Newhousing revenues are the revenues generated on the

saleof newly built residential properties only.

2. Land cost value for the plot divided by the revenue of the new

home sold.

3. Underlying gross profit stated before a net exceptional charge

of £39.8m (2024: £2.0m) and margin based on new housing

revenue (2025: £3.31bn; 2024: £2.86bn).

4. Underlying measures

stated before a net exceptional charge of

£44.9m (2024: £34.4m),

and goodwill impairment (2025:

£3.4m; 2024: £1.6m) and margin based on new housing

revenue (2025: £3.31bn; 2024: £2.86bn).

5. 12-month rolling ROCE calculated on underlying operating

profit and total capital employed. Capital employed being the

Group’s net assets less cash and cash equivalents plus land

creditors. ROCE excluding land creditors is calculated on

capital employed being the Group’s net assets less cash and

cash equivalents excluding land creditors. Statutory ROCE

including land creditors is calculated on reported operating

profit and capital employed with capital employed being the

Group’s net assets less cash and cash equivalents plus land creditors.

6. Estimated weighted average site gross margin based on

assumed revenues and costs at 31 December 2025 and

normalised output levels.

7. Land cost value for the plot divided by the anticipated future

revenue of the new home sold.

8. Company compiled full year 2026 consensus of 12,136

homes, an underlying operating profit range of £486m to

£517m and underlying profit before tax mean of £470m.

Financial review continued

Financial statementsGovernance Other informationStrategic report24 – Persimmon Plc Annual Report 2025

Our people

SUPPORTING

OURWORKFORCE

At Persimmon, our people remain the cornerstone of our success.

Their dedication, talent and hard work drive our commitment to

delivering high-quality homes and exceptional customer service.

As we look back on 2025, we are proud to have built on the

strong foundations laid in previous years, further strengthening

our culture of pride, inclusion and opportunity.

Our approach to people management is structured around the full employee lifecycle – attraction,

onboarding, development, reward, progression, retention and exit – ensuring a consistent, connected

experience that reflects our commitment to safety, wellbeing, clarity and opportunity at every stage.

Employee

Lifecycle

1: Attraction and

recruitment

7: Exit

2: Onboarding

6: Culture and

retention

3: Learning and

development

5: Progression and

performance

4: Reward and

recognition

Culture and talent

Our unique business culture continues to foster pride

and happiness among our talented employees. This

culture, combined with our people, is a key driver of

our industry-leading performance. In 2025, we continued

to attract, retain and develop top talent through

comprehensive training programmes, robust succession

planning and a deep commitment to diversity and inclusion.

Employee survey results reinforce this strength,

with89% of colleagues saying they know what they

need to do to be successful in their roles, and 87%

understanding how their work contributes to Persimmon’s

goals. This clarity and sense of purpose are fundamental

to our culture.

This year, we launched a mentoring scheme connecting

over 100 colleagues – including Executive members

– with mentors and mentees, fostering growth and

knowledge sharing across the business. Our refreshed

Performance Development Review model has enabled

more meaningful career conversations, while targeted

secondments and stretch projects, such as our AI working

group, have opened new pathways for development.

Chantelle Muir’s achievement as the first female

bricklayer to reach the SkillsBuild national final

andachieving a strong second place is a powerful

testament to the quality and impact of Persimmon’s

apprenticeship programme. Her success reflects the

effectiveness of our training, mentoring and on-site

development, and highlights our commitment to

developing skilled, confident professionals who

areshaping the future of the industry.

Our Advanced Management Programme and Leadership

Development Programme continue to deliver results,

with 46% of participants promoted, including female

leaders in senior roles. We are proud to see our

internal talent stepping into key positions, supported

by structured learning and leadership opportunities.

Our Management Development Training Programme

(‘MDP’) was shortlisted for the Housebuilder Awards

2025 in the ‘Best Training Initiative’ category.

In addition, employees report strong confidence

inleadership, with 79% expressing favourable

viewsof local leadership – 19 points above the

UKConstruction and Heavy Industry benchmark.

Chantelle Muir – Bricklaying Apprentice – West Scotland.

Persimmon Plc Annual Report 2025 – 25Financial statementsGovernance Other informationStrategic report

Our people continued

Training and development

We continue to invest in the growth and development

of our people across all areas of the business. In

2025, our in-house training team delivered a wide

range of programmes, including digital learning,

wellbeing initiatives and customer-focused development.

Ongoing digitisation of our training offer has

enhanced the learning experience, providing flexible,

role-relevant access to high-quality eLearning that

supports performance and long-term development.

During the year, we launched the Customer

CareAcademy, a structured programme for

customer careadvisors and managers, incorporating

an ICS accredited qualification and a Service

Improvement Plan to ensure learning is applied directly

to service delivery.

We also introduced our Trainee Assistant Site

Manager (‘TASM’) Programme, providing a

practical, experience-based pathway for experienced

site operatives to progress into site management roles

through targeted training and mentoring.

Number of training days delivered

c.15,900

Number of Mental Health First Aiders

299

(2024: 270)

98%

of our staff would recommend

Persimmon training to colleagues

46%

of staff undertaking our AMP andLDPmanagement

programmes havebeenpromoted

TWO AWARDS

FOR TARGET ZERO

Our Target Zero campaign to spread awareness of workplace safety has been recognised

attheInternational Brilliance Awards.

The campaign, produced in partnership with agency Gallagher Communication, won

theEmployee Engagement category in the internal communications section of the awards.

Andwecame second in the Internal Communications Campaign category.

Target Zero, which means ‘zero incidents and zero regrets’, launched in 2024. Phase two of the

campaign kicked off during Safety Week in July 2025 and included an ‘On the Sidelines’ video

series with former rugby players Nathan Hines and Stuart Grimes, Managing Director, North

East. The campaign continued through the autumn with monthly ‘Train yourself to THINK’ toolbox

talks, delivered to site operatives by site management, and a focus on telehandler activities.

Abigail Bainbridge, Group Health, Safety & Environment (’HS&E’) Director, said: “Target Zero

isour commitment to safety excellence and highlights the need to report all incidents, however

minor they may seem. Due to the campaign, reporting has gone up 70%. This gives us a more

accurate view of health and safety on our sites – and a better understanding of the incidents that

are occurring and why, so that we can continue to make efforts to reduce them. We won’t rest

until we eliminate all workplace incidents.”

Charlotte Ling, Group Head of Internal Communications, added: “Target Zero is a great example

of how our business can use communications in an engaging and impactful way to make a real

difference to site colleagues. Working with HS&E, we will continue to build on what we’ve

achieved so far – and you can expect to see more on Target Zero later this year.”

Financial statementsGovernance Other informationStrategic report26 – Persimmon Plc Annual Report 2025

Our overall

engagementscore

70%

7 vs. benchmark

I would

recommend

Persimmon as

agreat place

towork

8 vs. benchmark

5 vs. 2024

5 vs. 2023

79%

I am proud

towork for

Persimmon

1 vs. benchmark

3 vs. 2024

3 vs. 2023

76%

Key

Positive Neutral Negative

Our apprenticeship and graduate programmes remain

a cornerstone of our workforce strategy. In 2025, we

welcomed our fifth cohort of graduate trainees, with

40% of trainees female. During 2025, we supported

345 apprentices across theGroup, working in close

partnership with colleges, professional bodies and key

supply chain partners. Ourapprenticeship levy

utilisation exceeded 80%, demonstrating our continued

commitment to investing infuture ready talent and

building a sustainable skills pipeline for the business.

Feedback from our employee survey shows

clearrecognition of this commitment, with 76% of

colleaguesreporting they receive useful feedback

onperformance and 77% feeling part of a team

– demonstrating the positive impact of structured

learning and capability development.

Diversity and inclusion

We are committed to fostering an environment where

everyone feels valued and respected. This year, female

representation increased to 31%, with 34% of senior

roles now held by women. Ethnic minority representation

rose to 5%, reflecting our focused recruitment and

development efforts.

New network groups, including the Carers’ Network,

and initiatives like ‘Persimmon People’ and our Religion

and Culture Group, are helping to build a culture

ofbelonging.

Our bespoke mentoring intervention is providing support

for up-and-coming female and ethnic minority colleagues,

while enhanced data tracking and disability support

programmes ensure we continue to make progress on

our diversity and inclusion goals.

Employee voice from the Engagement Survey reinforces

that colleagues see Persimmon as ‘a company undergoing

positive transformation’, with particular appreciation

for improvements in communication, culture and

people-focused initiatives.

Employee engagement

andwellbeing

We provide an exceptional employee experience.

In2025, our engagement score reached 70%, 7%

ahead of the external benchmark, and 79% of colleagues

would recommend Persimmon as a great place to work.

Labour turnover reduced from 24% in 2024 to 23% in

2025, and 84% of colleagues agree Persimmon is

positioned to succeed over the next three years.

The wellbeing of our colleagues is a top priority.

Welaunched a Group Wellbeing Hub and a Wellbeing

Charter, providing a single front door to support and

resources. Over 180 Mental Health First Aiders have

been trained, and our new Absence Policy has

contributed to an 18% reduction in sickness absence.

Colleagues highlighted Persimmon’s focus on

wellbeing as a major strength, with 84% saying their

manager genuinely cares about their wellbeing and

commentary emphasising the Company’s focus on

employee wellbeing.

Wellbeing training for managers and role-based

support are now embedded across the business.

Recognition and rewards

Recognising and rewarding our people is central

toour culture. In 2025, we introduced new sales

incentive schemes, a Buy Holiday Scheme and a

Wellbeing Charter, alongside long service awards

and the launch of our Carers’ Network. Our intranet

now features more people stories, celebrating

achievements and promoting Persimmon as an

employer of choice. We have also enhanced our

careers landing page and developed targeted

campaigns to attract diverse talent.

Looking ahead

As we move into 2026, we remain focused on expanding

talent and succession planning, enhancing diversity

and inclusion, embedding wellbeing initiatives and

driving employee engagement and rewards. We will

be expanding our academy offering with the launch

ofour Sales Academy and the development of

standardised training programmes for our Technical

and Commercial teams. We will also introduce

initiatives that strengthen our own apprenticeship

provision while providing structured support for

apprenticeships across our supply chain partners.

By investing in our people and fostering a culture of

opportunity and belonging, we are building a resilient,

inclusive and high-performing workforce ready to

support Persimmon’s long-term growth and success.

We are genuinely

guided by a strong

commitment to doing

the right thing — even

when it’s difficult. At

our core, we value

asking tough questions

and embracing

complexity, all within

an environment that

remains deeply

people-focused.

Employee Engagement Survey

Persimmon Plc Annual Report 2025 – 27Financial statementsGovernance Other informationStrategic report

Sustainability

SUSTAINABILITY STRATEGY

Our three sustainability pillars

enable us to focus on driving our

strategic performance and are

aligned with the Group’s key priorities,

ensuring sustainability is a core part

of the Group’s operations.

BUILDING FOR

TOMORROW

We will reduce our environmental

impacts and achieve net zero

carbon reductions aligned with

science-based targets in both

the near and long term.

By minimising our environmental impact, we

can also benefit from increased efficiencies

throughout our supply chain and operations.

We focus on not only operational environmental

impact, but also the benefit that improved

sustainability can bring to our customers

through their homes and communities.

Key priorities

We are committed to reducing carbon

emissions from our operations and across

our value chain and have developed our

netzero pathway to 2045.

We aim to reduce absolute operational

carbon emissions by 46% by 2030.

We aim to achieve zero carbon ready

homes in use by 2030.

We aim to have 50% of our homes built

using timber frames from our off-site

manufacturing facilities in the medium term.

TRANSFORMING

COMMUNITIES

We will positively transform the

communities directly connected

to Persimmon’s activities.

Creating sustainable places for our customers

isat the heart of what we do. Our Placemaking

Framework guides all our developments and

ensures we create lasting, sustainable communities

with great design, the right house types and

valued green open spaces.

We make a positive local impact when building

new homes, meeting stakeholder expectations

and engaging with residents.

Key priorities

We are committed to maintaining an HBF

five-star rating for our customer satisfaction.

We are committed to delivering high-quality

homes. Our NHBC Reportable Items was

0.29 for the year ended 31 December 2025.

We are committed to delivering at least

a10% Biodiversity Net Gain on all

newdevelopments.

We have signed up to the Future Homes Hub

Homes for Nature Commitment to support the

protection of endangered species and provide

homes for wildlife.

We have specific and measurable commitments

on every site to leave a positive and lasting

legacy for the communities in which we operate.

SAFE AND

INCLUSIVE

We have a safe and inclusive

culture focused on the wellbeing

of our customers, communities

and workforce.

Recruiting and retaining the right people

meanswe deliver our key priorities and

provideexcellent customer service.

It is a priority that our processes meet stringent

standards to ensure safety and wellbeing. In

2025, we continued to drive our Target Zero

initiative, a bespoke safety excellence commitment.

Key priorities

We will report our Annual Incidence Injury

Rate and will aim to improve it year on year.

We will use our Target Zero initiative to work

towards zero incidents.

We aim to increase diversity across our

business and create an inclusive workplace.

We are committed to being a Living Wage

Foundation-accredited employer.

We will continue to apply ethical standards

and expect our supply chain to comply with

similar standards.

Read more on pages 30 to 40 Read more on pages 41 to 44 Read more on pages 45 to 49

We align our

SustainabilityStrategy

withthe UN Sustainable

Development Goals

We understand our material issues and align our

strategy and priorities to the Sustainable

Development Goals (’SDGs’).

Financial statementsGovernance Other informationStrategic report28 – Persimmon Plc Annual Report 2025

Carbon

DisclosureProject

(‘CDP’) Score

A-

2024: A-

Tonnes of greenhouse

gas emissions per

home sold

1.42

2024: 1.90

Community

Champion donations

c.£1.1m

2024: c.£900k

Trees planted on

our developments

c.215k

2024: c.146k

Average SAP rating

of our homes

2024: 86

Operational

wasterecycled

98%

2024: 98%

Investment in local

communities over

the last fiveyears¹

c.£2.3bn

2024: £2.2bn

Affordable

homes²

2,339

2024: 1,763

Low-carbon heating

solutions installed

instead of gas boilers

c.1,328

2024: 671

SUSTAINABILITY HIGHLIGHTS

Public open spaces

and gardens

provided for families

541 acres

2024: 484 acres

1. Estimated using an economic tool kit.

2. Homes provided to our housing association partners and discounted open market value homes.

Persimmon Plc Annual Report 2025 – 29Financial statementsGovernance Other informationStrategic report