Home builder Cairn Homes has reported lower revenues and profits for the six months to the end of June but said it was expecting the second half of 2025 to deliver another year of growth in revenue and profitability.
It said this will support its upgraded 2025 and 2026 guidance.
Cairn said its revenue for the first half of 2025 moved down to €284.5m from €366.1m in the first half of 2024, while its gross profit fell to €63.1m from €80.4m.
The house builder said its net average selling price eased to €387,000 from €388,000 the same time last year, which it said reflected the ongoing delivery of competitively priced new homes to both its core first-time-buyer and State partner markets.
It sold 708 units in the six month period, down from 893 units the same time last year.
The company today announced an interim dividend per share of 4.1 cent, an 8% increase from the 3.8 cent declared the same time last year.
Cairn said its closed and forward order book of 4,092 new homes has increased by over 1,700 new homes from 2,361 new homes at the beginning of the year.
It reported private weekly sales rate of 4.1 new homes per active selling site in the six month period, which it said was driven by "exceptionally strong" first-time-buyers demand.
It also said it was expecting build cost inflation of about 1-1.5% for the full year, down from the rate of about 2% expected at the start of the year. It said this reflected its focus on "innovation, productivity and scaled procurement efficiencies".
During the first half of 2025, the company launched eight new schemes across Dublin, Kildare, Meath, Cork and Galway, with strong demand reported for all the schemes. This includes the successful launch of its first Croí Cónaithe (Cities) approved development in the second half in Douglas in Co Cork.
Following that successful launch, Cairn said it will release its second Croí Cónaithe approved development in the second half of the year. This Government initiative enables private ownership of apartments and Cairn said it will continue to support this across several future sites.
Michael Stanley, Cairn's CEO, said the company celebrated a decade in business in June, adding that it has a market cap of €1.35 billion with over 30,000 people now living in a Cairn home.
"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," Mr Stanley said.
"As this unwinds, it will lead to a strong second half which is why we are raising our guidance today for 2025 and also introducing new guidance as a result of increased housing output for 2026," he said.
"In keeping build cost inflation under control, maintaining average sales price consistency, and placing a strong emphasis on energy efficiency, a well-designed Cairn home represents an attractive proposition for first time buyers. In parallel, the delivery of cost-effective new homes for our State partners, in mainly scaled apartment developments, plays a critical role in addressing the national housing challenge," he 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," he added.
Looking forward, the company said that supported by the exceptionally strong sales momentum it has upgraded its full year guidance for revenues of €945m, while operating profits of €160-165m now expected compared to its previous guidance of €160m.
It also said it remains confident about its future growth prospects and upgraded its guidance for 2026. It said it is now expecting revenue of about €1.02-1.05 billion and operating profit of about €175-€180m for the year.
Shares in the company ended lower in Dublin trade today.
