DUBLIN - Irish homebuilder Cairn Homes Plc ( Euronext (EPA:ENX) Dublin: C5H / LSE: CRN) today announced a trading update for the year ended December 31, 2024, revealing a 30% increase in housing output and surpassing its financial guidance for the year. The company reported approximately €860 million in revenue, a significant rise from €666.8 million the previous year, and an operating profit of roughly €150 million, up from €113.4 million in 2023.
Cairn Homes, which focuses on building sustainable new homes, has seen a return on equity (ROE) of 15.1%, marking a notable improvement from 11.3% in 2023. The company initiated construction on over 4,100 new homes and launched 10 large-scale developments in 2024. The forward order book stood at 2,361 new homes with a net sales value close to €910 million at the year end.
Despite a slight decrease in gross margin from 22.1% to approximately 21.7%, the company maintained an operating margin of around 17.4%, with operating costs below 4.5% of revenue. The average selling price of homes was €383,000 after VAT, which reflects the company's effort to provide affordable homes.
Cairn Homes also closed several forward fund transactions, which will result in the delivery of about 2,150 social and affordable homes over the coming years. The company's land acquisition strategy has been evolving, with four new option deals adding to its landbank.
The company has returned over €115 million to shareholders through share buyback programs and dividends. As part of its commitment to sustainable construction, Cairn Homes released its Climate Transition Plan and Passive House Position Paper, with more than 1,750 apartments commenced to Passive House standard.
Looking ahead to 2025, Cairn Homes expects to see revenue growth exceeding 10% and plans to continue investing in construction activities, aiming to increase sales to first-time buyers. The company will provide more detailed guidance for 2025 when it releases full year 2024 results on February 27, 2025.
CEO Michael Stanley commented on the importance of affordable housing delivery and the role of the state in supporting this initiative. He highlighted the success of the company in 2024 and the potential for further growth in the coming year.
This trading update is based on a press release statement and is subject to audit. Cairn Homes Plc is recognized for its focus on building high-quality, sustainable new homes in Ireland.
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