Vistry shares tank on profit warning
By Frank Prenesti
Date: Wednesday 13 May 2026
(Sharecast News) - Shares in UK housebuilder Vistry tanked on Wednesday as it warned first half profits would be "significantly" lower than last year and paused its share buyback to focus on cash generation and cutting debt.
In a trading update, Vistry added that it expected the second half to be in line with 2025, driven by a step up in demand for affordable housing, but noted that the level of macro-economic uncertainty has increased since the start of the Iran war, "and with it the range of potential outcomes for the current year".
Vistry, which owns Bovis Homes, Countryside and Linden Homes, said it would now slow construction on some sites and adopt "higher hurdles" for land buying as while conditions remain volatile. Shares in the firm were down almost 13% in London trade.
"The use of increased incentives and discounts has been more significant on low margin sites and developments that are nearing completion, resulting in an earlier recognition of profit impacts and a higher weighting of the overall profit impact in the first half than previously anticipated. We expect the level of discounting and its effect on profit to reduce in the second half of the year," the company said.
Vistry now expects full-year adjusted profit before tax toward the middle of analysts' forecasts range of £168m - £283m.
It said the war had "created some upward pressure" on building materials costs and worker wages, which were likely to continue into the second half of the year, but was "mitigating these where possible", including negotiating with suppliers.
AJ Bell investment director Russ Mould said: "To build from the ground up you have to level expectations, and it feels like new Vistry boss Adam Daniels has done that with his first major update since taking charge at the housebuilder."
"Prioritising cash generation over profit looks a sensible decision for a company carrying a meaningful amount of debt. However, it does mean first-half earnings will be substantially lower year-on-year as the company sells its open market homes at a discount to clear inventory."
"There have also been delays on its affordable housing partnerships projects as the industry goes through a period of transition.
"Rising costs associated with the inflationary pressures unleashed by the Iran conflict are a wildcard factor over which Vistry has little control. A lot might now ride on Daniels' strategy update in September after he's had a chance to fully review the group and its operations."
Reporting by Frank Prenesti for Sharecast.com
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