Cairn Homes lifts profit outlook as order book jumps
Cairn Homes Plc reported a drop in first-half revenues on the back of lower property sales, though a big increase in the order book has bolstered the outlook for the second half, prompting an upgrade to guidance for the full year.
The Irish housebuilder now expects 2025 operating profits to be between €160m and €165m, compared with previous guidance of €160m. Revenues are tipped to come in at €945m, representing growth of around 10%.
The company also introduced 2026 guidance for the first time, pushing for further growth in both measures to €175m-180m and €1.02bn-1.05bn, respectively.
Revenues over the six months to 30 June fell to €284.5m, down from €366.1m the year before, as Cairn sold just 708 units, down from 893 units previously, while the average selling price remained steady at €387,000.
As a result, gross profits fell to €63.1m from €80.4m, though the gross margin improved to 22.2% from 22.0% due to operational efficiencies.
Despite the weaker results, the company's closed and forward order book stood at 4,092 homes by the end of the half, up 1,700 since the start of the year.
Looking forward, Cairn welcomed the significant policies, initiatives and legislative changes introduced by the Irish government this year, as it attempted to increase housing delivery. Meanwhile, mortgage market conditions "remain positive" amid falling interest rates and strong wage growth, it said.
"The Government has put in place a suite of policies which can, if efficiently implemented, make a material difference in the delivery of new homes in the years ahead. In response, we will continue to invest in our own construction activity to deliver even greater numbers of quality homes for our customers," said chief executive Michael Stanley.
Shares were up 2% in early deals in London at 190p.
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