Cairn Homes Records Strong Sales Surge in H1 2025

Cairn Homes has announced a significant surge in sales for the first half of 2025, reporting an order book of 4,092 homes with a net sales value of €1.54 billion. This figure represents an increase of over 1,700 homes since January, indicating robust demand in the housing market. The company attributed much of this growth to First Time Buyers (FTBs), who contributed €625 million to the order book, demonstrating the strong appetite for new residential properties.

The listed company shared its interim results for the six months ending June 30, 2025, noting a weekly sales rate of 4.1 new homes per active selling site. Positive mortgage market conditions, driven by falling interest rates and rising wages, particularly among FTBs, have fueled this demand. FTBs accounted for 73 percent of mortgage drawdowns in the year leading up to Q2 2025, the highest percentage since data collection began in 2003. During this period, there were 32,298 FTB mortgage approvals, marking the highest level since the global financial crisis.

Despite the strong sales, national housing completions stood at 32,717 for the year ending June 2025, highlighting a significant gap between supply and demand. This has prompted Cairn to revise its revenue guidance for the current financial year, projecting revenues of €945 million and an operating profit between €160 million and €165 million. Looking ahead to 2026, the company anticipates revenues between €1.02 billion and €1.05 billion, with an operating profit of €175 million to €180 million.

In the first half of 2025, Cairn generated revenues of €284.5 million, including €274 million from residential property sales, driven by the sale of 708 units. This marks a decline from €366.1 million in the same period of 2024, when 893 units were sold, reflecting expectations that this financial year would be weighted towards the second half. The net average selling price for homes was €387,000, relatively stable compared to €388,000 last year.

The company’s net debt rose to just over €307 million, compared to €157 million in the first half of 2024. This increase reflects Cairn’s significant investment in construction activities during this period. The firm expects net debt to decrease in the latter half of the year as it continues to ramp up operations. Cairn reported a gross profit of €63.1 million, yielding a margin of 22.2 percent, which the company attributes to operational efficiencies achieved through strategic relationships and innovations in its supply chain.

Build cost inflation is projected to be between 1 percent and 1.5 percent for this financial year, a decrease from approximately 2 percent at the beginning of 2025. This reduction is credited to Cairn’s focus on enhancing productivity and procurement efficiencies. In July, the company refinanced part of its U.S. private placement debt, increasing the facility by €40 million to €97.5 million. Cairn now has access to €500 million in committed debt facilities.

Since June, Cairn has acquired land expected to yield around 900 new homes and exercised a joint venture option to deliver another 700 homes. The company’s total land bank now comprises approximately 16,900 plots.

Michael Stanley, CEO of Cairn Homes, expressed pride in the company’s achievements over the past decade, highlighting its market leadership position and a market capitalization of €1.35 billion. He noted that the business is performing strongly and that increased investment in construction activities will support a robust second half of the year. Stanley stated, “I am also very pleased to report that the business is performing strongly, our strategy is working, and we have doubled down on investment in our construction activities.” With these developments, Cairn aims to meet the growing demand for housing and enhance its output for the upcoming years.