Cairn Homes (LON:CRN) reported a record first half for 2026, with revenue rising 60% year-on-year to €455 million as the Irish homebuilder increased completions and expanded its sales footprint. The company also raised its full-year revenue, operating-profit and return-on-equity guidance, citing a growing order book, improving operating leverage and stronger cash generation.
The company sold 1,139 homes in the first half, also about 60% above the prior-year period, across 19 developments in Dublin, the Greater Dublin area, Cork and Galway City. Average selling prices remained broadly stable at €393,000, up 1.6%, despite build-cost inflation of about 2.5%.
Profit growth and upgraded outlook
Operating profit increased 75% to €74.8 million, while operating margin expanded to 16.4% from the prior year. Gross profit rose 54% to €96.9 million and gross margin was 21.3%, according to CFO Richard Ball.
Profit after tax rose 84% to €58.4 million, resulting in earnings per share of 9.3 cents, up 82% year-on-year. Net asset value increased 13% to €860.3 million, or €1.37 per share.
Cairn upgraded its 2026 guidance, now targeting:
- Revenue of about €1.08 billion;
- Operating profit of about €185 million; and
- Return on equity of about 17%, increased from prior guidance of 16.5%.
Management said it expects return on equity to remain stable in a range of roughly 17% to 17.5% over the medium term. Ball said capital-allocation decisions, including future land transactions, would be assessed based on whether they are accretive to shareholder returns.
Order book provides visibility through 2028
The company’s closed and forward sales pipeline stood at 5,020 homes with net revenue of €1.9 billion, up 23% from a year earlier. Of that total, 3,881 homes worth €1.44 billion were in the order book for delivery from the remainder of 2026 through 2028.
Stanley said Cairn’s private-market sales policy remains focused on homes expected to be ready for occupation within three to six months. He said the company had seen strong demand during recent launches and expected the order book to continue growing through the autumn sales season.
The business plans to operate across 30 selling sites during 2026, including 13 new schemes. Cairn said it is increasing the number of houses it delivers, with an emphasis on owner-occupier homes and first-time buyers. It is targeting for approximately 60% of its owner-occupier homes over the next five years to be priced below government caps for the First Home and Help-to-Buy schemes.
Cash flow, capital efficiency and shareholder returns
Cairn’s net debt fell by €112.9 million year-on-year to €194.5 million. Operating cash flow was €22.4 million after a net €69.1 million investment in work in progress, compared with a net outflow of €118.6 million in the prior-year period.
Ball said the improvement reflected the company’s investment in scale and a stronger forward-sales position. Closing work in progress increased €48 million over the past 12 months to €483 million, while the value of forward sales increased €174 million to €1.44 billion.
The company held €693.3 million of land for development and €482.9 million of construction work in progress at June 30. Debt to gross asset value was 18.6%, below its approximate 20% year-end target. Cairn has €500 million of committed debt facilities and no debt maturities until June 2029 following a €42.5 million loan-note refinancing.
Cairn increased its interim dividend by 10% to 4.5 cents per share, payable November 2, and announced a new €50 million share-buyback program that began immediately. The company returned €36.8 million to shareholders through dividends during the first half.
Land strategy, apartment delivery and costs
Management highlighted efforts to reduce the capital intensity of the business. Cairn owns a land bank of 18,000 units across 38 sites, at an average plot cost of €37,000, and has added a capital-light strategic land bank of about 2,750 units. It also has a strategic pipeline of 6,500 units using structures including land options, deferred consideration, planning- or zoning-conditional contracts and joint ventures.
Stanley said the company does not expect the material net land investment seen over the previous 24 months to recur over the next several years. He added that Cairn is using forward-funding structures on some larger apartment projects for state partners, approved housing bodies and the Land Development Agency, allowing portions of work in progress to be funded monthly during construction.
On apartment demand, Stanley said the Croí Cónaithe scheme was helping support homeownership in urban locations. He said Cairn’s Seven Mills project had received more than 4,000 inquiries during its initial apartment launch and that the company was delivering more than 200 units under the scheme.
Management maintained its 2026 build-cost inflation expectation of 2.5%. Stanley said current pressure was principally related to transport costs rather than raw materials, while Ball noted the company is about 95% procured for 2026 and about 50% procured for 2027.
About Cairn Homes (LON:CRN)
Cairn Homes plc, a holding company, operates as a home and community builder in Ireland. The company engages in the development and sale of residential properties, as well as rental of properties. It also provides financial services. Cairn Homes plc was incorporated in 2014 and is based in Dublin, Ireland.
