Glenveagh Properties Stock

Welcome to the conference call. [Operator Instructions]

Now, I will hand the conference over to Stephen Garvey. Please go ahead, sir.

Good morning, everyone, and thank you, operator. I am Stephen Garvey, Chief Executive of Glenveagh Properties. I'm joined today by my colleagues, Conor Murtagh, our CFO, and Kate Halliday of Investor Relations. Thank you for joining our interim results call for the 6 months ended the 30th of June 2026.

This morning, I'll take you through the executive summary on the H1 performance, the market, the policy backdrop, and how our long-term strategy is showing up in homebuilding, partnerships, land and innovation. Conor will take you through the financials, capital allocation and the outlook. And I'll come back at the end for any closing remarks. As always, we'll leave plenty of time for your questions towards the end.

We'll begin on Slide 4, which sets out the highlights of H1, including a sold-out 2026 and an EPS upgrade guidance amongst many other milestones of note. Overall, this was a half of accelerating activity. Construction spend is up 34%. We launched 6 new sites, and the order book has grown to a record EUR 1.8 billion, up 29% year-on-year. The result is that second half is now fully underwritten. Within our Homebuilding segment, nearly 2,400 units are sold, contracted or reserved, up 62%, and every home we expect to close this year is already sold, contracted or reserved.

Within our Partnership segment, we have now seen strong increases in activity in the period, reflected by an increase of 43% in partnership revenue, standing at EUR 176 million. Our land bank saw further enhancement, increasing to 21,000 units from 19,000 at year-end with limited incremental investment. We have now doubled our buyback program, which we began in January of this year, expanding it to EUR 100 million. On completion, this program of approximately EUR 520 million will have been returned to shareholders since 2021.

Today, we've also upgraded guidance. We now expect to deliver almost 2,900 equivalent units across the group this year, up from 2,750, and with more than 1,700 homebuilding units, up from 1,600. We have upgraded our full year earnings per share guidance to at least EUR 0.21, whereas in March, we guided up to EUR 0.21, a mark of continued confidence in the trajectory of the business. These upgrades come on the back of a fully sold order book for 2026 and strong activity evidenced from the construction spend on the ground.

Turning to Slide 5 and the robust underlying market fundamentals we are experiencing here in Ireland. The demand picture hasn't changed. Ireland's population continues to grow, increasing approximately 17% in the past decade. Our population is the youngest of our European peers with a median age of now 39.6, over 5 years younger than the EU average. This points to a population of prime household formation age and contributes to the sustained structural housing demand we are seeing today. Employment is at an all-time high, and the average weekly earnings rose 3.9% from Q2 2025 ahead of inflation.

Mortgage approvals reached a record EUR 17 billion annualized to March 2026, with drawdown values up almost 8% year-on-year. Household income and access to credit both remain supportive of affordability. Against that, national completions for the first half were just under 17,000 units, up 11% year-on-year. However, demand continues to outpace supply. Although 40,000 completions may be achieved in 2026, planning and commencement data suggests this number may not be sustainable into 2027.

Looking now at our policy on Slide 6. There has been decisive and supportive government policy set out. The framework is now largely complete, while the focus has now shifted to implementation and delivery. The EUR 275 billion in the National Development Plan front-loads housing and water infrastructure with capital ceilings rising annually and the National Planning Framework rezoning underway. These are all very encouraging developments. A number of key supports have been put in place, including Help to Buy has been extended to December 2029.

The First Home funding of approximately EUR 390 million was put in place with future plans to expand on, which is now in progress. Croí Cónaithe continues to bridge the apartment viability gap. Apartment VAT has been reduced from 13.5% to 9% as well as the corporation tax deduction of EUR 50,000 per apartment until the end of 2030. And the focus on implementation can be seen through.

On the back of the Planning Act 2024, the Housing Activation Offices are making a real difference on the ground as well as infrastructure progress on 2 projects that are critical to the medium-term housing supply. The Greater Dublin Drainage project has moved into procurement and enabling works, while the Shannon pipeline is in the final stages of planning. However, there is still more to do.

As outlined in inaugural Homebuilding Horizons Report 2026, it is clear that zoning, servicing and capacity enabling infrastructure still remain as constraints. But the direction of travel is clearly right, and the job from here is implementation. We will continue to engage constructively to help translate policy into homes on the ground so that we can best contribute towards the national delivery targets.

Taking a look at Slide 7 now. I'd like to focus on the policy picture that is providing strong support to buyers in terms of affordability. Help to Buy and the First Home Scheme together account for just 4.5% of government's EUR 7.5 billion housing package. And when you look at the chart on the right-hand side, you can see that they can provide a significant impact for first-time buyers.

To understand the relevance to our own platform, this is why we build own-door housing and why our product primarily sits below EUR 500,000. Our focus is to maximize affordability where the demand is strongest. And this is why our average selling price will trend down, not up, which brings me to Slide 8 and our land bank.

As we've previously mentioned, we own a high-quality, well-located, fully assembled land bank. This provides us with the visibility required to plan and achieve our medium-term objectives. Our land bank has expanded to approximately 21,000 units after disposals with limited incremental capital investment, up from 19,000 units at year-end. Targeted land investment of EUR 33 million added 1,100 plots to the business. Planning and design gains added a further 900 units, and rezoning of our own strategic land holdings to residential use added a further 600 units at no extra cost.

Almost 75% of these homes will be located in the Greater Dublin Area, and the majority will be own-door product, which is the deepest and most resilient part of the market. This will support the delivery of 2,900 to 3,700 units per annum through to 2030 without material further investment in the near term.

Slide 9 details our investment case, and having spoken to the compelling market opportunity, I'll turn now to our operational review to take you through the progress across the platform.

Bringing us to Slide 11. Our Homebuilding segment is underpinned by the fact that all units expected to close in 2026 are now sold, contracted or reserved. With 155 units closed in the first half and just under EUR 64 million of revenue, our cumulative spend in the period, which is up 34% year-on-year, underpins the delivery into the second half of the year. As we look into H2, our forward order book comprised of nearly 2,400 homebuilding units sold, contracted or reserved, up 62% year-on-year. We've launched 6 new sites in H1 with a further 7 phases selling across other existing developments.

Turning to Slide 12. Our Partnership segment continues to grow in scale and significance. And as we proudly operate as an established partner of choice for the state and state agencies for large-scale affordable delivery, underpinned by a provable and scalable model. We continue to make progress on our active sites in Ballymastone, Oscar Traynor Road and Mooretown continuing to contribute. And we are currently in active discussions on approximately 1,000 units on Glenveagh lands with an expectation to provide further details on this at full-year results.

Looking at Slide 13. We have a robust pipeline of partnership opportunities, which provide a strong medium-term visibility underpinning the next phase of growth. With over 7,000 units and an established net development value of approximately EUR 3 billion, there is ample opportunity that the business can capture over the medium term.

An increasing proportion of the pipeline land is internally sourced, reflecting the natural progression of state-led procurement as it begins to ramp up their process on the back of policy directives. Importantly, we know we have more land to bring forward. So these opportunities -- as these opportunities convert, and we can continue to replenish the pipeline and sustain a healthy runway for future partnership opportunities.

A meaningful share of the pipeline has planning granted, highlighting the quality and the maturity of these opportunities. As I mentioned in March, we are not going after everything in this pipeline. We are focused on what is best suited for us, which is the best product we can build efficiently and at a scale we need and where our platform adds the most value. Partnership continues to be a key priority for the group, noting our status as a partner of choice continues, sustainable growth as the segment continues to mature.

Taking you now to Slide 15, where I'll turn your attention to our home of the future, our manufacturing-led and innovation-driven strategy, including the rationale behind it. Firstly, taking a step back and bringing your attention towards 2 central costs in the industry that are trending notably upwards. The carbon tax is at EUR 71 a tonne today, legislated to reach EUR 100 per tonne by 2030, which we expect to materially affect the cost of material down the line.

And on the labor side, the industry employs approximately 178,000 people today and needs about 280,000 by 2030. Gross new entrants added 40,000 people. Retirees took out around 17,000, and policy and productivity measures are expected to contribute the equivalent of about 24,000 people over the next number of years. This still leaves a shortfall of over 50,000 construction workers. And that is before you account for the National Development Plan competing for the exact same workforce. The cost and labor challenges are coming, and we have assembled a structural hedge against them, which takes me on to Slide 16.

Our integrated system tackles these challenges head-on, reducing our construction timeline from 18 weeks to less than 12 weeks. Across a network of 3 factories in Carlow, Arklow, and Dundalk spanning 400,000 square foot in total, we are leveraging a system of sequential benefits by increasing the proportion of build process that we can premanufacture in-house.

Timber frame and light gauge steel are already embedded across the entire platform. That sets us up for implementation of our external wall system, which reduces the reliance on wet trades on site. Lighter wall unlocks our insulated raft foundation system, reducing concrete usage and lowering embodied carbon. And then, our roof cladding substitutes heavier finishes with modular off-site friendly systems. Finally, our energy and water systems, which are designed to reduce peak consumption as well as lower the running costs for our customers, are already being implemented with new systems rolling out into the second half of 2026. As we roll out each of these systems, we are progressively increasing the premanufactured value, or PMV, reaching 70% by 2030, if not there beforehand.

Slide 17, the rollout of the system from now until 2030. Timber frame and energy systems are 100% of the portfolio today, with the new energy specification phasing in from the second half of this year. The external wall and foundation systems start with 200 units in 2027 and ramps up from there. And the lightweight roof phases in from 2029, all of them at 100% of production in 2030.

The bottom row highlights the premanufactured value progression of these work streams rolled out and the ramp-up. Today, we sit at approximately 45% with nearly half of Glenveagh's homes already made indoors. By 2030, we'll sit at 70%. We have built this integrated system of -- for approximately EUR 75 million of capital with a further EUR 15 million remaining across this year and next year.

To emphasize the scale and the sophistication of this strategy, it took us about 7 years to assemble. Part of its strength is that it's not easily replicated, requiring standardization, design for manufacturing and an attractive own-door focused land bank of scale and workforce experience. Combined with the market conditions and the government supports, we continue to view this as an exciting enhancement of our development and delivery capabilities. And I'm looking forward to keeping you updated as we roll out the integrated system into future updates.

With that, I'll hand you over to Conor to take you through the financials.

Thanks, Stephen, and good morning, everyone. I'll start with the income statement on Slide 19 with a focus on the performance highlights for the half. Revenue for the half was EUR 240 million against EUR 342 million for the same period last year. Homebuilding contributed EUR 64 million from 155 closed units, and partnerships, EUR 176 million, up 43%, which includes approximately EUR 10 million of land sales. This step down in group revenue relates to the phasing of homebuilding completions and the second half weighting that we set out for you in March. As Stephen has said already, every home we expect to close in '26 is sold, contracted or reserved, and construction spend is 34% ahead in the period to June on similar volumes.

Looking closer at the mix, average selling price was approximately EUR 402,000 in the first half against EUR 377,000 in H1 2025, owing to site mix. Like-for-like pricing is firm across every active site. We expect an ASP of approximately EUR 380,000 for the full year and around EUR 350,000 on a spot basis over the medium term as our own standardized product takes an increasing share. That pricing direction is deliberate. Affordability is the strategy with a view to continuing to meet buyer needs.

Group gross profit in H1 was EUR 37 million at a margin of 15.5% against 19.5% for the same period in 2025. This movement purely reflects a higher proportion of Partnerships revenue in the half at 73% against 36% last year, with Partnerships obviously carrying a lower margin. Underlying performance in both segments moved in the right way, however. Homebuilding margin was 21.9%, up 50 basis points, and we expect approximately 21% for the full year with H1 flattered by mix on low volumes. Partnerships gross profit grew 16% to EUR 23 million at a 13.2% margin, in line with our expectations.

Administration expenses, including depreciation, reduced 3.6% to EUR 24 million, and I will come on to talk about overhead trends a bit more in a few moments. Net finance costs were EUR 12.3 million versus EUR 9.6 million last year, reflecting higher average net debt and the write-off of unamortized borrowing costs on our previous facility. We expect approximately EUR 24 million in finance costs for the full year. That leaves profit before tax of EUR 1 million. As we mentioned, we have upgraded our full-year guidance from up to EUR 0.21 to at least EUR 0.21 on the back of a sold-out order book for 2026 and accelerated construction delivery.

Moving to Slide 20. This gives a picture of the progressive dilution of overheads we have seen as we scale the business. Alongside scale benefits, active cost management and the deployment of AI across the business, each support our expectation of an overhead base below 5% of revenue for the full year, with further declines as a percentage of revenue to follow in future years.

Turning to the balance sheet on Slide 21. Total assets of approximately EUR 1.45 billion, up from EUR 1.25 billion at year-end. Land, excluding development rights, was EUR 559 million against EUR 534 million at year-end, an increase of 5%, resulting from the EUR 33 million of targeted acquisitions and limited releases due to lower homebuilding volumes, which will all now come in H2.

Work in progress increased 46% to EUR 505 million from EUR 347 million a year ago, with construction spend up 34% year-on-year, underpinning the outturn for 2026. Contract assets were EUR 137 million, and the unwind of this through H2, alongside a growing forward funded component within partnerships structurally improves cash conversion as we continue to scale. The post year-end contract asset balance will be significantly below EUR 100 million.

On Slide 22, we take a look at net debt, which was EUR 423 million at 30 June against EUR 168 million at year-end. Operating cash outflow in the half was EUR 209 million. We are guiding net debt to reduce to approximately EUR 120 million by year-end, underpinned by the order book position that we talked about and the unwind of the work in progress build from the first half, which converts to cash as those homes close in addition to the natural unwind in the contract assets and partnerships.

Across WIP, land and contract asset alone, there's approximately EUR 300 million to unwind in H2. From 2027, we expect homebuilding completions to be spread more evenly, relatively speaking, across the year. This will return net debt, both on average and half year, to normalized ranges and give a more consistent lower net debt position through the year. We continue to target average net debt of 15% to 25% of gross assets with a swift transition from the upper end of the range this year to closer to the lower end of 15% in 2027.

Slide 23 then sets out our evolving land bank between now and the end of '27. As I noted, our land balance sits at approximately EUR 558 million, which includes the EUR 33 million spent in H1. We continue to remain on track to take approximately EUR 100 million out of total land investment by December 2027. This has been facilitated not only by our well-invested position in plots, but also by rezoning, planning and design gains, which have added to our land bank at 0 additional costs.

As the country accelerates new land zonings, we expect our strategic land portfolio to continue to contribute developable plots to the business beyond what is in the 21,000 outlined, supporting the targeted reduction in balance sheet value, as there is no additional cost of these units. Land sale guidance for this year is now approximately EUR 20 million, down from EUR 45 million with a further EUR 25 million of land sales now anticipated in 2027.

Slide 24 highlights the group's refinancing, which we completed in April and is future-proofing the group's funding position. Total committed funding is now EUR 550 million, up from EUR 450 million in the previous facilities. This is a new 5-year EUR 450 million RCF with our existing lenders, AIB, Bank of Ireland, Barclays and Homebuilding Finance Ireland, with ING now also joining the syndicate. Alongside it, a new EUR 100 million of 7-year private placement was completed with MetLife, which brings long-dated institutional capital into the structure for the first time and further broadens the lender base.

With approximately EUR 57 million of project level facilities, total funding across the group is now over EUR 600 million. The funding suite in its totality represents a step change for the business in terms of counterparty expansion, tenure, available liquidity, economics and covenants. The private placement carries a fixed coupon out to 2033, while a 5-year interest rate cap is in place on EUR 100 million of the RCF. Both combined largely derisked the group's average debt requirements from interest rate risks in future periods.

Moving to capital allocation on Slide 25. The priorities of discipline and balance are unchanged, but the demands on capital are now beginning to fall rapidly. The land bank is fully assembled. The manufacturing program is substantially complete with approximately EUR 15 million left to spend, and shorter build cycles and better delivery profiles means every unit delivered will benefit from greater economies of scale, and sites will absorb less working capital, which brings us to returns.

The current buyback began as a EUR 25 million program in January and was extended to EUR 50 million in May. Today, we've added a further EUR 50 million. That takes the authorized program to EUR 100 million running to no later than the 31st of March 2027. On completion, approximately EUR 520 million will have been returned to shareholders since 2021, with share count down well over 40%.

Looking forward, on Slide 26, I want to point to key elements of our exceptionally strong 2026 outlook. This is underpinned by a resilient demand environment, clear policy visibility and our ability to deliver the right product, principally high-quality own-door housing in the best locations at the right price.

On EPS, we are now guiding full-year EPS for 2026 to be at least EUR 0.21, revised from up to EUR 0.21 in March. We expect to complete more than 2,900 total equivalent units this year, and of those, in excess of 1,700 will be homebuilding units. The combined 2026 and 2027 homebuilding output of 3,600 reflects a deliberate reallocation of some of our land bank towards partnerships where units delivered on Glenveagh land are forward-funded and capital light.

As these schemes convert, the group sees scope for partnerships to outperform its EUR 60 million average annual gross profit guidance with a corresponding acceleration in group return on capital employed. The segment is on track to deliver its guided annual profit of in excess of EUR 60 million in 2026 with a further 1,000 unit pipeline in Glenveagh sites, providing visibility into future periods.

Homebuilding gross margin is expected to remain at approximately 21%, supported by standardization, scale benefits and the site economics embedded in our portfolio. Our land sales, as mentioned previously, are now expected to be approximately EUR 20 million for 2026 with a further EUR 5 million in 2027, and we remain on track to take EUR 100 million out of the balance sheet value invested in land by 2027.

And lastly, net debt is expected to materially reduce to approximately EUR 120 million by year-end with the business having entered a structurally lower capital phase of delivery from Q3 of this year.

Thanks again for joining this morning, and I'll pass you back to Stephen for his concluding remarks.

Thank you, Conor. Turning to Slide 28. I want to conclude today's call with 3 key things. First, the market opportunity is real and is sustained, structural undersupply, particularly for affordable product, record employment, real earnings growth and a policy framework that is now largely built.

Secondly, our sector-leading platform is built to capture that opportunity at scale and serve that demand with high demand for own-door homes at accessible prices, a fully assembled land bank that carries us all the way to 2030 with planning secured or lodged on approximately 65% of it. We have 3 factories and an integrated system that reduces our time on site with greater efficiencies and margin expected, as we pass through the rollout phases from now to 2030. And our Partnership business is now operating at scale with a pipeline of approximately EUR 3 billion. This has been assembled over 7 years and is not easily replicated.

And third, that platform is delivering strong tangible outcomes. We are sold out for 2026. We have upgraded both delivery and earnings guidance this morning. We have doubled the buyback to EUR 100 million, and we expect the business to be highly cash generative into the second half of the year. The strategy is working, and we are confident in our ability to sustain this momentum.

Before we open the lines for any questions, I would, as always, like to take this opportunity to thank our entire team at Glenveagh and all our partners across the industry and the supply chain for their commitment and hard work through the first half of the year. Together, we are realizing our vision and the state's ambition that everyone should have access and an opportunity to great value, high-quality homes in flourishing communities across Ireland.

Thank you for taking the time to join us this morning. I will now pass you back to the operator for any questions you may have. Thank you.

[Operator Instructions] The next question comes from Colin Sheridan from Davy.

Congratulations on a great set of results. I've got 3 myself, if that's all right. The first 2 are actually on the land markets. Maybe if you could just comment a little bit on what you're seeing going on in the land market and maybe a little bit just to the zoning upside that you've seen during the course of H1, which must be pretty pleasing. And to what extent there might be further upside to be gained from the strategic land bank in that front.

And the second bit on land is just on the reduction in values out to the end of 2027. I mean, Conor, you referred to the EUR 100 million coming out. I mean, the level that you're going to, does that feel even more sustainable than you had been talking about previously?

And the last one then is just on the partnerships pipeline. I mean, it's obviously at a similar level as it was back earlier in the year, but it looks like there's been a lot of progress made within the categories you look at it. Does it feel a bit more real now that pipeline in terms of being closer to bringing stuff into the land bank for real? That's it for me.

Thanks, Colin. Yes, land, I suppose just what we're seeing out there at the moment is there is more land coming into the system. I'll talk about zoning in a second, but there probably is a realization with landowners now that the RZLT is becoming real and their opportunity to sell on. So there is an element of land coming into the system.

Obviously, we're at a low base because of the National Planning Framework restricted the amount of availability of land. As the minister noted during the summer, the government artificially kept the land market low and didn't realize the consequence of that, and now, we're reversing that position. So I suppose they are instructing local authorities to really zone up. And we're seeing that firsthand.

As we said, we've seen some of our strategic land convert from agricultural base to actually zoned residential land, and we've seen that gain. I think I quoted in the March or maybe it's a bit longer than that, that we expected somewhere between 3,000 and 4,000 units would come from our strategic land bank over the next number of years.

I think where the positive step change will really happen is when local authorities enact 10-year development plans. That will be a sea change because in that one stroke of the pen, somewhere between 0.5 million and 600,000 will enter the system because they'll be going to 10-year life cycle. So our view is that kind of happens from around the mid-'28 into 2029, we see a real uptick in the availability of land. And I suppose what we called out this last week in our Horizons Report was we're in favor of RZLT to, I suppose, incentivize landowners to bring land into the system. So we see the availability of land in the coming years not being a challenge.

For ourselves, we're not in the land market for the foreseeable future. It's very small. It's acquisitions that are adjacent to existing opportunities that we have. So we're not really an active buyer, and we will remain that way probably now well into 2028.

On the EUR 100 million, yes, and that reduction value, Colin, yes. So like as we said, we'd overinvested intentionally in land at the end of '24 because we saw the shortages.

I think we're back online there. Apologies, we lost everybody.

So what I was saying there, so we'd intentionally overinvested in land and what you're seeing now is a return to normality. And I suppose those rezonings that you're seeing coming through the system, that demonstrates that the reduction in land is sustainable and that we can continue to operate the business at current levels and indeed grow volume at the same time as reducing that land balance to EUR 450 million and below.

Just on the last one, Colin, on partnerships. As we've called out, obviously, we've made a lot of progress as the year has evolved on our existing partnerships. I think there's 3 positive step changes. Obviously, partnerships has really matured, and you've seen that revenue generated in the first half, and you'll obviously see it a lot stronger into the second half of the year.

I think more importantly is the pipeline of partnerships. So firstly, our own portfolio is now a lot more active. We've gotten a lot more inbounds from both local authorities, approved housing bodies and the Land Development Agency to partner up for cost rental, social housing and affordable purchase. As we've identified, we're in discussions on 1,000 units, and we'll update at full year results. But we have a bigger pipeline beyond that. So probably really positive on our own existing portfolio and what it can deliver now on partnerships.

Beyond that, I think what you would have seen from the early variations that have happened in local authorities is a lot of the land that was owned in some of the local authorities is actually state land and that will start to come into the system towards the back end of 2027. And we've identified the opportunities there. So yes, very positive towards where Partnerships is and then ultimately where Partnerships can grow over the next number of years.

The next question comes from Shane Carberry from Goodbody.

Two, if I can, please. The first one is just in regards to kind of following on, on the Partnerships land bank. Would you be able to give us a little bit more color around the transition that you said you're seeing from Homebuilding land into Partnerships land? And how significant an opportunity that could be in terms of return on capital employed story?

The second one then, just regards to, obviously, the H2 skew was well documented. Could you give us a little bit of color though maybe in terms of current trading and how kind of Q3 has evolved thus far in terms of us thinking about that kind of H2 skew?

Yes. No, I know there's -- to give context of where we are in, I suppose, Q3 is we would have closed more in July than we would have for the first half of the year, and we closed more in August than we did in July. So I suppose we have the positive momentum. It was a strategic decision. We did flag it early in the year that, obviously, we were going to invest. A number of things that we've rolled out is just examples of this is we've rolled the energy -- the new energy system out onto some of our sites. We were letting that bed in.

The interesting thing is we're seeing a real positive uptake with the actual buyer out there on the ground because of how energy efficient our product is. Your utility bills are cut in half, and there's a real buy-in from the consumer, and we're seeing strong uptick. So it's letting all that bed in, but we're in a good place to monetize, as we've said, into H2.

Most importantly, the order book is there and the demand is there. I think particularly where we're seeing the strongest demand at the moment is particularly of our own product. So where we standardize product on standardized sites, we're seeing real buy-in there, and that's positive.

The other one?

Yes, Partnerships return on capital then.

Yes, I'll let you on the return on capital. I suppose where we're really seeing the benefits on the Partnership side is -- so say where we have a scheme of maybe 1,000 units now. And that 1,000 units, we might have said would have been a 5-year delivery pipeline. Introducing Partnerships onto that site is bringing that timeline maybe back to a 3-year timeline. So you're returning your capital at a faster turn on your land. So instead of being 5, you're bringing it into 3.

But then also, on your WIP profile. So a 200-unit site has a EUR 40 million WIP. You're changing the WIP profile of that site from EUR 40 million maybe to EUR 25 million by introducing partnerships. So there's massive wins for that, I suppose. And where we really see the wins into that is that 1,000 units that we're talking at the moment, monetizing that into 2027, and it actually makes us in a really advantageous position from a capital basis into that.

If you want to talk about the return?

Yes. No, that's exactly it in terms of accelerating the use of our own land bank. But I think more importantly, it derisks the delivery profile in that business, not only of the EUR 60 million gross profit, but also gives us visibility on growing that into the future. So I think that's an important benefit as well.

Obviously, with the pure state lands, you're reliant on the timing of master plans, zoning, then going to tender. And the benefit of having Partnerships on our own land means that it's much more within our control, and the product we deliver on it is exactly the product that we're comfortable building. So very pleased with the direction of travel there.

The next question comes from Harry Goad from Berenberg.

I've got 2 questions, please. Firstly, I know you made some comments on build cost inflation for this year, but how do you feel that trend into 2027? Do you expect some sort of alleviation in those pressures?

And then secondly, just thinking about labor, there's an interesting chart you got in your deck about the sort of shortfall -- potential shortfall in the workforce. How does that sort of play into your thinking about sort of operating the business at a larger scale as you head to the latter years of the decade?

Thank you, Harry. Yes, too, obviously, geopolitical events are making it very volatile out there and particularly on the energy side. I think what we've probably seen during the year is surcharges on cost, particularly with haulage, particularly with anything that's energy intensive. And we've seen surcharges particularly being the thing of the moment. And I suppose suppliers are going to see how that evolves.

I think for ourselves and where we see ourselves positioned is, obviously, we're well hedged. An awful lot of our procurement is done and any gains that we have there can offset, obviously, the challenges that are being seen from the energy side. And I think more advantageous for us is obviously the standardized product, but then the manufacturing element by controlling your timber frame, by controlling your energy system and then obviously introducing our new wall system, these are all benefits that can control or reduce our cost into the future.

So I suppose for Glenveagh, we have more tools than most to navigate that. Where we really see the gains across the portfolio is timelines. Because we are so integrated in the process now, it's the timelines on site. So where a program might run for maybe 60 months, if you can take 6 months out of that program, it's a massive saving for us because we're just more efficient with the delivery because we control that supply chain. And obviously, that allows us to really navigate any challenges that potentially others can't navigate.

On the labor side, and we would have flagged this for the last couple of years, I think people have to realize that, obviously, the government are making a big investment in housing. They want to see targets increased, and they want to see the delivery happening. They're giving us as much tools as possible to do that. But there is a recognition there that also on top of this, there's a massive investment from government in relation to the National Development Plan. So infrastructure, sewage upgrade, water upgrade, all of these things are going to demand a greater workforce.

Again, that was a strategic decision in our business to invest in the vertical integration to allow us to be more efficient when those challenges will come. I think in Conor's notes, he said like our house price can trend down from here, not up. That's a real advantage. I'm not sure the rest of the competition have those tools to play with. So we're in a really -- not in a comfortable position. We're really happy where we're positioned. And obviously, we'll navigate whatever the challenges are in front of us.

Yes. And to follow up on the BCI point, I suppose, very much in line with expectations with what we thought -- where we thought we'd be in March and in May. And I suppose what we're seeing from suppliers is given we're one of the only 2 suppliers of scale in the Irish market, we're the last people that suppliers want to call with price increases. So what I'd say in that is line ball with where we were expecting it to be.

[Operator Instructions] There are no more questions at this time. So I hand the conference back to the speakers for any closing comments.

Thank you very much, everyone, for joining the call. And we look forward to catching up with you over the next week or so. Thank you.

So hello, and welcome to the Glenveagh Full Year Results 2025 Results Conference Call. Please note, this conference is being recorded. [Operator Instructions]

I will now hand you over to your host, Stephen Garvey, CEO of Glenveagh, to begin today's conference. Please go ahead.

Good morning, everyone, and thank you, Zach. I'm Stephen Garvey, CEO of Glenveagh Properties. I'm joined today by my colleagues, Conor Murtagh, our CFO; and Kate Halliday, Investor Relations. Thank you for joining our full year 2025 results call.

This morning, firstly, I'll walk you through our full year strategic and operational highlights, the market, the policy context and how our strategy is performing in Homebuilding, Partnerships, land and innovation. After that, Conor will take you through the financials and capital allocation, and I'll return to the outlook on closing remarks. As always, we'll leave plenty of time for any of your questions at the end.

To begin, let's turn to Slide 4 with the headline numbers for the full year. 2025 was another strong year for Glenveagh, with record revenue of EUR 926 million, strong completions growth at 2,568 units, which was delivered -- which was up 11% year-on-year, and earnings per share ahead of guidance at EUR 0.20, an increase of 18%. We completed our EUR 105 million share buyback program and continue to expand our margins across the business.

What gives us real satisfaction is not just the numbers, it's what they reflect. The investments we have made over the past number of years in our landbank, in our manufacturing, in our Partnerships are all coming through in the results now. The strategy we set out is working, and the business is performing at a level that we can sustain and further growth opportunities we can build on this.

Turning to Slide 5. Before we get into the detail, it's worth taking a moment to frame the opportunity in front of us. Glenveagh is in a strong position. Ireland has a genuine long-run housing shortage, and we've built a platform that is designed to address this at scale. Our landbank, our manufacturing capability, our partnership relationships, these give us a structural competitive advantage that isn't easily replicated. We're not just benefiting from favorable conditions, we're actively shaping how homes get built in this country. Glenveagh is uniquely positioned to deliver on the compelling market opportunity in front of us, with a sector-leading platform and a track record of delivering strong outcomes, reliable cash generation, effective capital management, balance sheet strength, all focusing on delivering long-term value creation and returns for our shareholders.

Slide 6 sets out the underlying fundamentals and the picture remains a positive one. All of the drivers remain for the demand of new homes such as population growth, employment levels and wage growth continues to strengthen. Ireland's population is growing faster than anywhere else in Europe, and the employment is at an all-time high. That's the environment we're operating in. Notwithstanding potential global economic risk, it underpins the confidence we have in the business at this very moment.

At the same time, national completions, while at the highest level in over a decade, remain well below what is needed each year to meet demand. The structural shortfall is real, but government policy changes have set out a clear road map to meet the required demand.

Moving to Slide 7. The policy backdrop has continued to improve and is now meaningfully supportive of housing delivery, with government targeting over 300,000 new homes by the end of this decade. The National Development Plan, which provides long-term infrastructure visibility of over EUR 275 billion. This is Ireland's largest ever capital program, which will sustain investment -- infrastructure investment through to the year 2040. Help to Buy has been extended. VAT on apartments has been reduced from 13.5% to 9%. Planning reform is beginning to deliver greater certainty. These are real practical changes that make it easier to build homes in Ireland today.

We welcome all of this. There is more to do on zoning, infrastructure and enabling capacity, but the direction of travel is clearly right, and we continue to engage closely with government and state agency to help turn policy intent into homes on the ground. The large government presence at MIPIM this week reaffirmed its commitment to attracting new institutional and capital investment into the sector to deliver much needed homes in Ireland.

On Slide 8, I want to highlight what perhaps is the most important structural asset, our landbank. We've now completed the current phase of our land assembly strategy. The result is a large, fully invested landbank, with no further material land investments now required. The vast majority is in the greater Dublin area and focused on own-door product, which is the deepest segment and most resilient demand segment in the market. This landbank supports strong delivery capacity all the way through to 2030. It was secured at an attractive cost with embedded spot margins that gives us confidence in the return profile within our portfolio.

We've also completed a meaningful level of land disposals in 2025, and remain well on track to deliver the stated sales across 2026. In a market where deliverable zone land is constrained, we have assembled probably the best landbank in the country today.

Turning to Slide 9. Planning is one of the areas where our in-house capability gives us a real edge. Our planning approval rate over the last 5 years is well above the national average, with only one refusal across a large number of applications, demonstrating our strong relationships with local authorities and the planning and product quality of what we deliver.

All 2026 deliveries have already commenced, and the 2027 program is either planned or progressing through active planning applications. The recent planning reforms, the most significant in the generation, are improving time lines, removing delay mechanisms and increasing certainty for applicants. These changes are good for the sector, good for buyers and practically good for well-resourced operations like Glenveagh.

Let's now move to the Homebuilding on Slide 10. This was another strong year for the segment. We delivered just shy of 1,500 units, with margins expanding and the forward order book materially ahead of where it was this time last year, now standing at over 1,250 units. The pace of sales was strong across the year, with multiple phases selling out quickly, including Hereford Park, Kilmartin Grove, Rath Rua, Greville Park and Effernock.

The performance reflects the choices we've made in standardization, scalable sites and vertical integration. These aren't just teams. They're showing up in our results today. And with a strong order book and 4 new launches in Q1 and more planned across existing developments, the pipeline is well positioned going into the year ahead.

Turning to Partnerships on Slide 11. This was another strong year for this segment, which is now operating at a scale and maturity that really sets Glenveagh apart. Revenue was up significantly year-on-year at 60%. Margins were ahead of target at 18.2%. And we continue to build the pipeline, closing out the year strongly with a new mandate for 350 units secured in H2 2025, and in advanced discussions across 3 further opportunities totaling approximately 500 units.

Construction also advanced well at Ballymastone and Oscar Traynor Road, while we closed the transaction at Marina Depot with the Land Development Agency in Cork. Glenveagh is firmly established as the state's partner of choice for large-scale affordable delivery, and that's a position built on consistent, reliable execution over a number of years. It's a hard-won reputation and one we are very proud of.

On Slide 12, we give you more detail on the Partnership pipeline, which continues to deepen. The pipeline now stands at approximately 8,000 units, with a total estimated net development value of about EUR 3 billion. It's substantial and well balanced across commenced timing, contract status and land source, giving us strong visibility on future delivery. We don't need to convert the full pipeline to deliver our targets, and this gives us an ability to be selective and to progress schemes where our platform and scale add the greatest value for both the authorities and Glenveagh.

Moving now to Slide 14 and our Home of the Future section. There are 6 principles that guide our innovation program, and it's worth spending a moment on these because they explain why investing in the area and what we expect to get. The first principle is time. We are targeting a significant shift, evolving less on-site labor and maximizing efficiency, which will bring homes to customers faster and allow us to return -- to cycle our capital quicker through the business as we move through each phase.

The second principle is quality. Over 95% customer satisfaction score reflects the higher standards and the more controlled manufacturing approach can support. Greater precision and less variability give customers more confidence in the product and in the quality of what we deliver.

The third and fourth principles are labor and value. Moving more actively into off-site manufacturing reduces the reliance on skilled trades on-site and creates a more resilient, scalable delivery model. That in turn supports value by improving delivery certainty and strengthening the proposition for our customers and our apartments.

The fifth and sixth principles are standardization and infrastructure resilience. Standardization helps simplify the delivery and support scale. While infrastructure resilience is about reducing resilience on public infrastructure and increasing energy independence together. Together, they give us greater control over program delivery and strengthen the long-term resilience of our model.

Then moving to Slide 15, where we present the challenge and how our response. Ireland needs over 50,000 new homes a year. Traditional construction is slow, fragmented and labor-intensive. It cannot get us there. That's the gap that Glenveagh has built its model to close. Our response is vertically integrated housing system. Glenveagh, combined with NUA, our in-house manufacturing arm, creates a platform that connects standardized design directly to off-site production.

Our 3 factories in Carlow, Arklow and Dundalk have the capacity to produce 2,500 units per year based on one operating shift. The outcome is faster delivery, reduced program risk, guaranteed supply and improved quality. And we're aligned with government policy. Our new facility in Carlow received ministerial endorsements as a milestone for housing delivery, and we are well positioned to scale this to 4,000 units per year by the year 2030.

Slide 16 shows the road map for what comes next. Workstream I, timber-frame and light-gauge steel, is already fully embedded across the platform. And that is the foundation for everything else that is built up. We're now moving through to 4 further work streams, each which increases the premanufactured value or the PMV.

Workstream II is the external wall system. It replaces heavily wet trade-dependent construction with an engineered wall system, taking PMV from our current base to 55%.

Workstream III moves to insulated raft foundation system, reducing concrete usage and lowering embodied carbon on sites and bringing PMV to 60%.

Workstreams IV and V, roof cladding and energy and water systems, are the final stages, each targeting 70% of PMV. Roof cladding substitutes heavier finishes with modular off-site friendly systems, while energy and water workstreams incorporates technologies that reduces peak consumption and reduces the reliance on public infrastructure connections that can delay site starts.

We have 400,000 square foot of manufacturing capacity already in place to support this journey. The direction of travel is clear, as more and more of the build process moves to offsite, we become more efficient, more predictable and more resilient. Together, it all compounds over time.

On Slide 17, delivering at scale is only meaningful if you're delivering quality. Our customer satisfaction rating reached a new high in 2025 and repeat mandates from sector state partners tell the same story. Our Home Buyer Portal is now fully integrated across the customer journey, which is a reflection of the care we put into the experience on the other side of the transaction.

With that, I'll hand you over to Conor to talk you through the financials.

Thanks, Stephen, and good morning, everyone. I'll start with the income statement for 2025 on Slide 19. As Stephen outlined, 2025 was another year of strong financial progress for Glenveagh, which delivered continued revenue growth, margin expansion across both operating segments and EPS ahead of guidance. The quality and sustainability of the earnings profile continue to improve, and the results reflect the compounding benefit of investments and strategic decisions made over the past number of years.

In the year, group revenue increased to EUR 926 million, up 7% year-on-year, with Homebuilding contributing EUR 545 million from 1,490 closed units, with Partnerships delivering EUR 381 million in revenue, representing 60% year-on-year growth as the segment continued to scale.

Gross profit increased to EUR 198 million, with gross margin expanding by 20 basis points to 21.4% despite changes in business mix. Homebuilding gross margin was 23.6%, up 110 basis points, underpinned by standardization, scale and vertical integration, alongside a continued contribution from land sales. Partnerships gross margin was 18.2%, which included a positive land contribution of approximately 190 basis points. Excluding lands, the underlying Partnerships margin was approximately 16.3%, ahead of expectations and reflecting continued strong on-site execution.

Central costs were EUR 50 million, including a noncash share-based payment expense of approximately EUR 8 million. Total administration expenses were EUR 54 million, including depreciation and amortization. While absolute costs rose modestly as we continue to invest in systems, innovation and talent, overheads reduced as a proportion of revenue, evidencing the improving operational leverage as the business scales. This dynamic is expected to persist, with overhead growth expected to lag revenue over the medium term.

Net finance costs increased marginally to EUR 19 million, driven by higher average debt balances earlier in the year. Profit before tax was EUR 125 million, up EUR 114 million from 2024. Earnings per share increased to EUR 0.20, up 18% and ahead of guidance, with a return on equity of 14.4%, up from 14.2% 2024.

Turning to the balance sheet on Slide 20. The balance sheet reflects a robust and increasingly efficient financial position. Following the completion of the current phase of our land assembly strategy, the year-end land balance reduced to approximately EUR 534 million, excluding development rights, down from EUR 556 million at the end of 2024, driven by unit delivery and selective land disposals. Our focus remains on steadily reducing capital employed in land over time, while maintaining output and protecting delivery certainty.

Work in progress remained broadly stable at EUR 284 million, reflecting disciplined production management and official capital deployment as output scaled. Contract assets increased during the year to EUR 142 million, consistent with the phasing of revenue recognition across Partnership projects. Net assets stood at EUR 793 million at the 31st of December, up from EUR 751 million at year-end '24, representing continued balance sheet strengthening.

Moving to cash flow on Slide 21. Operating cash inflow was EUR 100 million for the year, supported by disciplined management of WIP and land investment, with capital turnover improving as output scales and standardization accelerates delivery.

Net debt reduced to approximately EUR 168 million at year-end, down from EUR 179 million at the end of 2024 despite increased production activity and continued capital returns to shareholders.

Looking ahead, the unwind of the contract assets through 2026 as milestones are achieved, combined with a growing forward-funded component within Partnerships, is expected to strengthen structural cash conversion as that platform scales.

On Slide 22, we provide a bridge and how the landbank is expected to evolve between 2025 and 2027. Land sales of EUR 55 million were completed in 2025, with a further EUR 45 million targeted for 2026. This will take total disposals across the 2 years to approximately EUR 100 million. The year-end 2025 land balance of EUR 554 million, inclusive of development rights, is expected to reduce to a range of approximately EUR 400 million to EUR 460 million by the end of 2027, driven by unit sale WIP releases and land sales, balanced by a modest level of selective land acquisitions. This trajectory reflects a deliberate shift from a period of active land assembly to one of progressive capital release, optimizing the portfolio towards larger, scalable developments, while supporting improving returns and cash conversion over time.

Moving to Slide 23. Our capital allocation priorities remain clear and consistent. On land, the current phase of our land assembly strategy is now completed, and the landbank supports the delivery of between 2,750 and 3,600 units per annum true to 2030, with no further net land investment required.

On WIP, we anticipate continued investment to support the [ 33% ] Homebuilding unit growth from 2025 to 2027, offset by the ongoing focus on expanding the Partnerships' platforms in a disciplined and sustainable manner, resulting in an unwind of the contract assets. Furthermore, our Grade A office block in Dublin Docklands is expected to deliver a material cash inflow in 2028, following the completion of our lease-up strategy.

On supply chain, offsite investment is largely complete, with EUR 70 million invested to date and the capability in place to deliver 2,500 timber-frame and light gauge steel units per annum on a single shift. A further EUR 20 million investment is planned across 2026 and 2027 to expand timber-frame capacity and importantly, operationalize our innovative facade production.

On returning excess cash, we completed a EUR 105 million share buyback program in December 2025 and commenced a further EUR 25 million program on the 15th of January 2026. On completion of the program, over EUR 445 million will have been returned to shareholders since 2021, reducing the issued share count by approximately 42%. The group targets an average net debt range of between 15% and 25% of gross assets, and we expect to be highly cash generative in H2 '26, providing capacity for continued reinvestment and further capital returns subject to market conditions.

So bringing it all together on Slide 24, we're confident in our ability to deliver our guidance for 2026, growth in completions across both segments, continued margin delivery and further progress on land sales. We're guiding to EPS of up to EUR 0.21 for the year, supported by a robust land portfolio, a solid order book and ongoing standardization. We expect approximately 1,600 Homebuilding unit deliveries in 2026, and Partnerships is expected to deliver the targeted annual average gross profit of EUR 60 million for that segment.

The business enters the year with a strong order book, fully invested landbank and clear line of sight on delivery. We'll continue our disciplined and balanced approach to capital allocation, maintaining our focus on value creation and return to shareholders.

Thanks again for joining this morning, and I'll pass you back to Stephen for his concluding remarks.

Thank you, Conor. And to wrap things up, please turn to Slide 26, where I want to leave you with 3 things. First, the market opportunity is real and sustained. Structural undersupply, strong employment, rising earnings and a more active policy environment are all driving demand. And that picture isn't going to change materially over the next 5 years.

Second, our platform is built to capture the opportunity at scale, a fully invested landbank, a manufacturing-led delivery system, a scale Partnership business and a track record of disciplined execution. These give us a competitive position that's difficult to replicate.

And third, we're delivering record completions, record revenue, expanding margins and significant capital return to shareholders since 2021. The strategy is working. We are confident in our ability to sustain this momentum.

Thank you for taking the time to joining us this morning. And I'll pass you over now to Zach for any questions you may have. Thank you.

[Operator Instructions] And the first question comes from the line of Colin Sheridan of Davy.

A few for me, if that's okay. The first one is just on land. I'm just wondering if you could comment on -- clearly, you're not going to be buying as much land over the next couple of years, but how are you seeing the market at the moment? And whether or not actually given the changes to NPF, there's any strategic land rezoning opportunities in the landbank as it sits today?

Second one then, just -- you comment on the H1, H2 split and Homebuilding in the statement. I wonder if you can give us a bit of color of what that looks like at a group level for the full year and what the level of confidence is in H2 delivery at this stage of the year?

And then I guess we have to do one on build cost I mean, how protected do you think you are at this point in time in terms of contracts? And how is vertical integration likely to help out on that side? And I guess how much can price be a protection as you go through the year, notwithstanding that we don't know how things are going to play out at this stage?

Sure, Colin. Thanks for the questions. Yes, I suppose that the land buying strategy that we had, obviously, we made a major investment in 2024. We clearly signaled that. We took down approximately EUR 280 million worth of land that came in via '24 and '25, and some will come in, obviously, in 2026. And I suppose we made the right investment at that moment in time because, from our standpoint was, land was going to be constrained because of, I suppose, an underestimated national planning framework that estimated the country only needed 33,000 units.

The majority of product that we purchased was own-door, which suits the strategy in the business between vertical integration and I suppose the deeper segment of the market.

We're not going to be in the land -- not going to be active in the land market for the foreseeable future, probably somewhere into -- maybe into 2028 at this stage. And I suppose our confidence is that the land portfolio that we've assembled allows us to comfortably support the delivery, as Conor outlined, between 2,750 and 3,600 all the way to 2030. So we have plenty of upside there.

Our view is the National Planning Framework is going to zone somewhere between 800,000 and 1 million plots of land. And our view is that the capital to sustain that purchase won't be there. So there'll be plenty of opportunity when we go back into the market.

Just from a business context, obviously, we have a large proportion of our portfolio, which is strategic land. So the 19,000 plus that we call out excludes strategic land. We're already starting to see some of our strategic land getting zoned in adoptions of local area plans and variations. So they will add further to the portfolio as it evolves. So we are seeing quite an active land market out there. There's plenty of demand but a limited supply, that supply will come on, I suppose, for us. We're timing our entry to 2028 because we think that's where the biggest opportunity will be. And tied into that will obviously be our own strategic landbank and where that goes.

On build cost inflation, look, it's a very volatile market at this very moment. I think we have the tools to navigate this better. I would describe us as -- because we have the vertical integration tied down the ways we have, we can probably sustain a higher element of inflation versus other competitors out there. So while we are monitoring and playing close attention to it, we probably have the best tools to navigate. But inevitably, there will be more build cost inflation here. But that doesn't change our view on where guidance is at this moment in time. We're very comfortable where things are.

I think, Conor, you might do on the H1, H2 split.

And I think a bit further on build cost, like we've taken all the actions we can ahead of time and with good visibility on 2026 costs, over 80% of that, and as locked in as it can be in the current environment, and then over 50% for 2027. So we're not complacent on it. Inevitably, there will be some, but we're well placed there.

When we come back to H1, H2 split, what you're going to see in the first half of the year is an outperformance in Partnerships relative to prior year, and that's going to be balanced by a reduction in Homebuilding completions in H1 versus prior year. So Stephen mentioned the land that we acquired at the end of 2026, that got in -- end of 2024, that got into production in the early part, to middle part of 2025, and that's going to materially deliver from H2 2026.

So it's not huge in the context of the business. So last year, we were mid-30s in terms of percentage of revenue delivered in H1. It will be high 20s in 2026. And then very comfortable, like you only have to look at the order book there. So it's well underpinned by demand. And now it's about execution, and we have the benefit of having been on site on a lot of those schemes from 2025. So notwithstanding the H2 weighting, very confident in the coming through.

We will take our next question from the line of Shane Carberry of Goodbody.

Three for me, if that's okay. Just one, Stephen, if I could get you to expand on the kind of broader Partnerships pipeline, that would be great. Just kind of the types of opportunities that are within that. And you kind of mentioned that you don't necessarily have to execute on all of them. So just a little bit more color around how you're thinking about that going to be on the forecast horizon be helpful.

Second, just with regards to planning and just kind of expanding a little bit on kind of Slide 9, it looks like you've been very active from a planning perspective and done very well over the last few years. There was an article in The Irish Times a couple of days ago kind of saying about a couple of delays potentially on a couple of sites. Is that just normal course of business? Or should we read anything into that?

And then just on the back of last question, just on the back of kind of maybe Slide 7 and 8. Just kind of trying to think -- and I know it's only a small proportion of your portfolio that's kind of above the EUR 450,000 sort of level. Just what kind of demand are you seeing above that sort of level knowing that the supports are in place? There's quite a lot of support in place below that sort of level.

Yes. Sure. Yes, I've seen the article myself. I suppose what was a little frustrating about the journalist is, he seemed to forget the ones that had all come through the system. We got -- and I suppose it just shows that the planning system is reforming. We got 2 judicial reviews that were stuck in the court for a number of years, both came through almost 600 units in early January. We got a big development of 450 units in Mooretown, which was granted by Fingal County Council within the 8 weeks.

The two in question, Balbriggan, the FI has been submitted today. So that shows how quick we could respond to that. And then I think the second one in Belcamp. Obviously, Belcamp is a much larger development, which incorporates Dublin City Councils landbank as well. And what I suppose Fingal and DCC wanted to do is that bring the DCC lands in as well at this stage. So it's going to incorporate the whole thing, which they know is coming down the track. So I have no issues on the planning, I suppose.

We've only seen one scheme fail, and that scheme has now been regranted by the local authorities. So across the board, a really positive planning environment. And I think we show best-in-class in the quantum that we're now pulling through the planning system. And I just think by the end of '27, as we move into early '28, the quantum of land that we'll have planning granted on and the runway we'll have in front of us will dramatically change. So I'm really confident on that front.

On the Partnership pipeline, I suppose we break it into 3 buckets. Sub EUR 200 million, we probably see 1/3 of that there. Some of that is within our own portfolio, and we're already in discussions with local authorities and approved housing bodies. The other 1/3 is somewhere between EUR 200 million and EUR 400 million and then another quantum above that larger than that.

What we're really seeing confidence in and you're starting, I suppose it's all hinged now on the National Development Plan. We've seen some local authorities already rezone their own land. And we know they're identifying these locations for development. So we have a real confidence in what's coming. And I suppose we have real confidence, and I've been very crystal clear about this is, we're not going after everything. We're going after what works best for Glenveagh in the sense of the product that we can deliver, the more efficiency that we can bring to the table, and obviously, the scale of those projects. So very confident, very comfortable where that thing is. And I suppose it really shows where Partnerships is now maturing to -- and I suppose, the sustainability of that model going forward is in a really good place.

The last one, Shane?

It was on the -- above EUR 450,000.

Oh yes, sorry, sorry. Yes, I suppose, Shane, the only thing I would say, the majority of product and likely to be well into the high 90s is we have very little product above EUR 500,000. There's an element of what we acquired in the [ Gannon ] portfolio, and that's working its way through the system. They're not as fast as sales, but the conversion rate that we have isn't required. So look, I would say the majority of product that we have is sub EUR 500,000. We're now doing a new launch of product in Dublin at the EUR 400,000 mark. So it just shows where we've moved as a business. So very comfortable in the space.

Yes. I think part of what you're seeing in that 12%, Shane, is the Partnerships piece. So a lot of those are contracted already. So we would have some apartment schemes where you're pushing over that EUR 450,000. But as Stephen said, a key attraction of the Homebuilding landbank is that it's almost all of it's under at EUR 500,000 cap, not only under it, it has significant space below it, which is positive.

So our next question comes from the line of Jonathan Coubrough of Deutsche Bank. .

In terms of NUA, I know it's another timber-frame manufacturing business in Ireland recently changed ownership. It would be interesting to hear just what you think the cost saving is if you're doing this in-house at the moment versus if you were to buy those timber frames externally? And also, beyond cost savings, can you point to the other benefits of having an in-house timber-frame facility?

Yes. I might take the first part of that and tee it up for Stephen thereafter. I think the way to think about it, Jonny, is we've put about EUR 70 million into NUA, and it's more than covering its cost of capital, that competed for capital versus the Homebuilding business and the Partnerships business. But it still has significant room to sort of grow that further, but you're probably going to see that when Phases 2, 3 and 4 kick in. So it's covering its return, its cost of capital at the moment, but it will materially outperform and when we push the additional premanufactured value through the facility.

Yes. No, I think that's 100%. I suppose, Jonny, we made the long-term investment like NUA for us was a journey that started in 2020, but it only really comes to the fore in '27 '28. We see an element of that in '24 and '25, but it really only starts when the vertical integration of the next phases are all incorporated. And I suppose that's where we have the real confidence in controlling build cost because we have to remember that this government are now investing nearly EUR 20 billion in infrastructure per year. Inevitably, that will tighten the labor market and the availability of labor. But that's where the vertical integration really outperforms for us.

So obviously, we watch that trade. Obviously, our facility is twice the size of that, and our facilities can expand dramatically over the next number of years. So yes, we feel that from an investment point of view, the returns will really benefit the business really into the future here.

Understood. And just a follow-up. I think you've been very clear that you're not in the land market now for a couple of years, but I just wonder whether -- when you do go back in, whether you'd be wanting to do things under option and if land options is something that you've been looking at?

Yes. I'll surmise the land market this way. If you look at the average cost per plot in Glenveagh, you're at 30-odd thousand a plot. As I said, I think somewhere between 800,000 and 1 million plots of land will become available. That's up to EUR 30 billion in capital. That capital does not exist and will not exist on the ground. And I suppose our view is that the land market will really mature. And I suppose for us is it will become more closer to the U.K. where you don't have to pay all upfront for the land. You can do strategic deals. The cost of capital that's weighted in the sites can reduce, and that's the trajectory on. So I think all that's positive upside from where we are at this moment in time. We made the right investment in 2024 to see us all the way to 2030, and now it's just about waiting for the opportunity and strike it through.

What I have to say is I know there's a lot of media coverage about this, that the local authorities aren't moving fast enough. They inevitably never will move fast enough. But it's a bit like an oil tanker. Once you start the turning, it will keep going. And I suppose we've just seen 1 or 2 local authorities come out over the last number of days, and you're starting to see big swings. And this is all before we put 10-year life cycle plans in place as well. So there'll be loads of land. We'll be the best place operator to execute it. Our build cost is going to be key to that to produce the unit more efficient than anyone else. And then I suppose the land cost is going to be relevant for us in the business.

The next question comes from the line of Edward Prest of Berenberg.

I've got 3, I think, 2. Firstly, in terms of volumes and your Homebuilding volume target of 1,600 and 2,000 for '26 and '27, are you thinking of those as targets to hit or a minimum level that you would achieve? And so therefore, how much capacity you've got to beat those?

Secondly, in terms of Partnerships, you're looking at about -- so FY '25 is about 41% share of revenue. Is that the kind of level you expect to hold going forward? Or are you thinking more in terms of absolute euro value there that you'll maintain? Yes, that's the 2 for me.

I think, look, what we're being crystal here is, obviously, the portfolio has the capability of doing 2,700 to 3,600. We're giving guidance, obviously, to 2,000. No, it's not a target. It's kind of we see that as the floor for what we can do going forward. So pretty comfortable there. I think as the business matures, we'll see how that can expand. But I think we have plenty of capacity and capability to grow into that, and we'll see how things evolve over the next 12 months.

But we have the land, we have the capability, we have the demand. I suppose, for us, it's just about execution and doing it the right way. I don't want to go through this like an elevator. I want to make sure it's a stairs, and we move through each platform, and we can set a stable base and move on to the next phase. So very comfortable in what we can do into the future.

On the Partnerships side, yes, the 40%. I know I've always been of the view that I want to get this business to a 1,700, 1,800 unit a year business. What that could represent? Can't give you clear numbers yet in the sense of the scale of that. But we comfortably believe that this can be a EUR 650 million to EUR 700 million business in the coming years. We certainly think there's a pipeline there to do this. We certainly think we're the best counterparty to do it.

And I think we've proven in the Partnerships that are now delivering some of the most standout partnerships in Oscar Traynor Road, which -- you've seen the minister out 2 weeks ago, ribbon cutting as the first 40 units are now being handed over, and there's real momentum in that site. I think Ballymastone is a standout development, almost 1,400 units. I think the success of that has really shown that this really works. And I suppose the engagement with local authorities, it's a proven model, you are a good counterparty, and we'd like to do more with you into the future. So I think this can be a very stable business, and there's plenty of opportunity for us into the future.

I think in the near term, and yourself and consensus are in a really good shape, and they're at 40%. So certainly, for '26, '27, 40% is a sensible place to be. And then we can see where we'll update you on the developments and the taking down of that pipeline that Stephen highlighted earlier for the impact in '28 and beyond.

There are no more questions. [Operator Instructions]

Great. Look, thank you, everyone...

We have a follow-up question from Shane Carberry.

Sorry, guys. Just had to get in right at the end. Just one follow-up. I just want to expand a little bit more on the strategic land piece as well would be really helpful. Just how much that could help things going forward as well would be useful to get a bit of a frame in terms of the scale of that and how quickly that could potentially flow through as well when we think about those landbank dynamics that you mentioned earlier?

Yes. Look, as the business stands, it's 19,000 units of land. As it stands before any rezoning is happening, we're starting to see rezonings happening. They're not in the numbers yet, but we'll see how they flow through. Variations are to be completed across the board. Realistically, the first variations will be completed by the end of Q2 of this year. I think likely now what's going to happen is there's going to be a second variation by local authorities to speed up process as well, and you're starting to hear the first rumblings of that across local authorities. They've done one, they're going to do another one.

Look, we have quite a substantial quantum of land that can be converted. It is quite substantial. It's not a further euro investment. It's in the landbank. We just want to see how that plays through, but there is a decent quantum there.

I think where you're going to see, Shane, is in reduced expenditure in land in '27 and '28 and that near-term horizon. And then you're going to see it in unit delivery and margin from '29 and beyond because clearly, they're required at attractive rates. So it's less capital deployment in '27 and '28 and then it's margin and unit benefits in the years that follow.

There are no more questions. I will hand it back to speakers for any closing remarks.

Thank you, Zach. Thanks, everyone, for joining us, and we look forward to catching up with you over the next number of weeks. Thank you very much.

Hello, and welcome to Glenveagh Interim Results 2025. My name is Laura, and I will be your coordinator for today's event. Please note this call is being recorded. [Operator Instructions]

I will now hand you over to your host, Stephen Garvey, CEO, to begin today's conference. Thank you.

Good morning, and thank you, Laura. I am Stephen Garvey, CEO of Glenveagh. I'm joined today by our CFO, Conor Murtagh. We appreciate you joining our interim results call for the first 6 months ended the 30th of June 2025. This morning, I'll walk you through the key highlights, the market, the policy context and how our strategy is showing up in Homebuilding, Partnerships, land and innovation. Conor will take you through the financials and capital allocation, and I will return to the outlook and closing remarks. As always, we will leave plenty of time for your questions at the end.

Let's begin on Slide 4, which sets out our headline numbers for the first half of the year. This period demonstrated the strength of our Building Better strategy, set out scale delivery, deepened our partnerships with the state and drove operational efficiency through innovation, and that's exactly what's reflected in our results. Our focus on standardization and vertical integration is now embedded across the business, making us more resilient and more efficient as we grow. The benefits of our early investment and innovation are visible in our margin profile and our ability to deliver at scale even as the market evolves. This is also the first interim period where our Partnerships segment has made a material contribution to group profit. This is a real milestone for us and reflects the strength of our public-private model.

We are now recognized as a partner of choice for the state with a growing pipeline and strong demand for our homes. We continue to manage our capital with discipline, optimizing our landbank and maintaining a strong balance sheet even as we accelerated delivery. Our buyback program continues to create value for shareholders, and we are seeing the benefits of a more efficient, more focused approach to capital deployment. We will discuss these elements in greater detail as we progress this morning. For now, I want to emphasize that the strategy we set out a few years ago is delivering for our customers, our partners and our shareholders.

Turning to Slide 5. Let's take a moment here to consider what sets Glenveagh apart in the current environment. The need for new homes in Ireland remains acute, and government policy is more focused than ever on increasing supply. This is happening against the backdrop of continued economic strength and a supportive policy environment, so the market opportunity is clear. What gives us confidence is the way we have positioned the business to capture the opportunity. We've built a sector-leading platform, one that's not just about scale, but about delivering high-quality homes in the right locations, supported by a uniquely integrated operating model.

Our early investment in innovation and standardization is now delivering tangible benefits, making our business more resilient and more efficient as we grow. We are seeing the benefits of our deepening partnerships with the state and hard-won reputation as a partner of choice for public housing delivery. This is supported by a disciplined approach to capital allocation and a strong balance sheet. Our focus on profitable growth, active landbank management and ongoing investment in our supply chain is enabling us to create long-term value for the business and drive sustainable returns for our shareholders.

Providing further context, Slide 6 shows just the long-term demand outlook for housing in Ireland remains exceptionally strong. We continue to see positive trends in income and employment with both wages and job creation rising steadily across the economy. Alongside this, Ireland's population growth remains robust, driven by sustained net inward migration well above the European average. Mortgage lending activity is also maintaining a healthy pace with first-time buyers accounting for a significant share of drawdowns supported by government schemes. The underlying drivers of demand for new homes are strengthening.

Turning to Slide 7. We can see in more detail how government policy and recent market initiatives are creating a genuine supportive environment for housing delivery. The National Development Plan and the Planning and Development Act 2024 are setting ambitious targets and providing significant funding alongside the infrastructure and planning certainty needed to achieve them. On the demand side, supports such as Help to Buy and the First Home Scheme continue to underpin affordability for buyers. They both have been extended, giving buyers and developers greater confidence to plan ahead. There's also a strong policy push for modern methods of construction and using state land at scale through the Land Development Agency and local authorities.

But as we've said before, meeting Ireland's housing needs will require more than just policy ambition. It will take sustained private sector capital, adequately zoned land, public sector resources and critical infrastructure. The success of our Partnerships platform shows how public and private resources can be pooled effectively to deliver much needed homes. We've shaped our strategy around this shift, and we are beginning to see material results, which we will talk about shortly. In the short term, the policy environment is evolving for the better, and that gives us real confidence in our ability to continue delivering at scale.

Now let's dive deeper into our segments, starting with Homebuilding on Slide 8. Just a quick reminder that at the start of the year, we announced with the 2024 results that we have simplified our reporting on Homebuilding previously Suburban and Partnerships, previously Urban and Partnerships. This was a standout period for homebuilding with delivery nearly doubling year-on-year. The momentum reflects the strong demand and the benefits of our differential model and strategy. Standardization, scalable sites, vertical integration are all coming through in our results. Excellence in our execution saw major completions at Kilmartin Grove and Hereford Park as well as major progress across a number of developments and a number of new sites starting earlier in the year. Our average selling price was elevated in the first half due to mix, but we expect that to normalize as the year progresses. Margin expansion in Homebuilding was driven by the choices we made to invest efficiently and repeatably with the forward order book at around EUR 1.4 billion, we have strong visibility for the rest of the year and well into 2026.

Turning to Slide 9. Let's talk about Partnerships. For the first time, this segment made a material profit contribution, reflecting the scale and momentum in this part of the business. We now have 6 active sites underway, including new contributions from Mooretown, New Road, the Cork Docklands, which is a development in collaboration with the Land Development Agency, alongside Ballymastone, Oscar Traynor Road and Foxwood Barns. This growing pipeline underpinned by robust planning momentum and repeated demand from public sector clients gives us strong visibility on future delivery.

Moving to Slide 10. We can see how our land portfolio remains a source of strength and flexibility. The portfolio has been carefully assembled to align with our strategy. It is focused on supporting high-quality own-door homes in right locations with 74% of our units in the Greater Dublin area. We continue to maintain a strong cost discipline with the average plot cost at EUR 32,000, and the landbank supports an attractive embedded margins and capital returns. Importantly, this landbank gives us capacity to deliver between 2,600 and 3,600 equivalent units per year through to 2030, underpinning our medium-term delivery objectives. We have also been actively managing the portfolio with over EUR 60 million of land sales either closed or at advanced stages, ensuring we remain flexible and capital efficient as the market evolves. Finally, just to note, the recent publication of the National Planning Framework is expected to materially positively impact our strategic landbank, resulting in a lower capital deployment requirement in future land periods.

Turning to Slide 11. Our commitment to innovation remains a core pillar to our strategy. We continue to invest significantly in this area. Phase 2 of our innovation program is now underway via a EUR 25 million commitment to expand our off-site facility -- manufacturing facilities in Carlow, including an additional facade line alongside our timber frame platform. At the heart of this is NUA, our in-house manufacturing and innovation platform. Through NUA, we are moving beyond traditional building methods and embracing innovative lightweight alternatives, such as a new wall system, roof cladding and floor cassettes. Our exclusive perpetual license for integrated external facades is now a key part of this, allowing us to increase premanufactured value and improve further efficiencies. Off-site manufacturing and modern methods of construction are already delivering tangible improvements in cost control, build efficiency and margin performance, all of which makes Glenveagh more resilient, more efficient and better positioned to deliver at scale as the market evolves.

With that context, I'll hand you over to Conor to talk you through the financials and the capital allocation.

Thanks, Stephen, and good morning, everyone. I'll take you through the financials for the first half of 2025, starting with the income statement, then moving to the balance sheet, land and cash flow and finally, our capital allocation priorities. As always, we'll outline the key drivers behind the numbers and what they mean for the business.

If we can turn to Slide 13. As Stephen noted, the first half of 2025 marked a period of strong growth for Glenveagh. Group revenue reached EUR 342 million, up 124% on last year. This uplift reflects the momentum we've built in both Homebuilding and Partnerships with delivery volumes and on-site partnership activity, both moving in our favor. Gross profit increased to approximately EUR 67 million, and our gross margin expanded to 19.5%, up 130 basis points. This margin improvement is as a result of several years of investment in standardization, scale and vertical integration in addition to mix benefits. Work in progress rose to approximately EUR 347 million, which is in line with our plans to ramp up Homebuilding output and deliver under the Croí Cónaithe scheme. Net assets finished the first half at EUR 748 million and reflects approximately EUR 35 million of capital returns in the period. Altogether, it shows we're supporting growth in a disciplined way, optimizing working capital, managing our landbank and maintaining a strong balance sheet.

Moving to the landbank slide then. Apologies, continuing on the income statement there, we're seeing the benefits of delivering more homes and large repeatable sites and our off-site manufacturing is now contributing to program certainty, quality and cost control. A feature of both business segments in 2025 is the completion of sites and phases with cost contingencies unutilized supporting margin expansion. Underlying gross margin in the Homebuilding segment, excluding noncore sales at Shrewsbury Road and land sales was 22.8% Nevertheless, spot homebuilding margins in the group's medium-term delivery pipeline are approximately 21%, with site mix continuing to be a principal driver as the business monetizes its vintage landbank and scales to 2,000 units with a focus on return on capital.

Gross margin in Partnerships in H1 was 16.2%, ahead of target owing to site mix and unutilized contingency due to strong cost control. Similar to Homebuilding, site mix will play a significant role in future periods as the business scales up and the group completes the transition out of its remaining urban sites. EUR 400 million in revenues remains an achievable current year and medium-term target with visibility on replacing existing partnership sites with new wins increasing over the period. Operating profit for the first half was EUR 42.1 million, Net finance costs were EUR 9.6 million, reflecting a higher opening debt level following last year's land acquisitions. Profit before tax was EUR 32.5 million and earnings per share came in at EUR 0.052.

Moving to the balance sheet on Slide 14. Focusing in on the key numbers here. Land balance, excluding development rights, was EUR 536 million, down from year-end as we continue to actively manage the landbank and focus on capital efficiency. I'll come back to land on the next slide. Work in progress rose to EUR 347 million, which is in line with our plans to ramp up homebuilding and deliver under the Croí Cónaithe scheme. Altogether, it shows we're supporting growth in a disciplined way, optimizing working capital, managing our landbank and maintaining a strong balance sheet.

Moving to Slide 15. I touched on it briefly, and you can see how our landbank is evolving and supporting our growth agenda. The EUR 536 million land balance at June 2025 represents a peak investment level for us. From here, we're focused on reducing capital intensity, delivering units from our existing landbank and executing targeted disposals. We remain on track to complete land sales of EUR 100 million across 2025 and 2026. More than EUR 60 million of that is already closed or at advanced stages of contract. This strategy is about prioritizing capital employed in land and focusing on sites of scale that can support delivery in both Homebuilding and Partnerships. Given the strength of the landbank, both in terms of scale and product type, i.e., own-door homes, we can both grow the business and reduce capital deployed in land towards EUR 400 million to EUR 450 million over the next number of years.

Next, Slide 16 shows our cash flow. Operating cash outflow was EUR 10.8 million, a material improvement from the EUR 194 million outflow in H1 last year. That is driven by higher completions, greater contribution from Partnerships and tighter working capital management. Importantly, net debt was EUR 230 million, a lower figure than this time last year despite a materially higher starting position. Moving forward, we continue to invest selectively where returns are strongest, principally funding construction WIP, investing in innovation and returning surplus capital to shareholders, which brings me to Slide 17, where we have our capital allocation priorities.

Our medium-term visibility is as strong as it has been. We have clear line of sight on unit growth combined with landbank reduction on replenishing the Partnership's pipeline on freeing up capital, while capturing manufacturing benefits that will provide a structural medium-term cost advantage. Against that backdrop, we continue to focus on 4 key priorities: firstly, land. We're actively reducing our landbank, as I set out, primarily through unit delivery and targeted unit sales. But importantly, we will sustain, as Stephen mentioned, the capacity to deliver 2,600 to 3,600 units per annum. Secondly, work in progress. Investment here is supporting the planned increase in Homebuilding outputs to 1,900 units in 2027, which remains a core driver of revenue growth.

Third, supply chain and innovation. We're investing in off-site manufacturing and next-generation building approaches. That includes a EUR 25 million commitment to deliver a new external facade line and facility upgrade, which will transform how we deliver homes. Approximately EUR 10 million of spend will occur in 2025, EUR 10 million in '26 with the balance in 2027. And finally, returning excess cash. The buyback program announced in May has been expanded from EUR 85 million to EUR 105 million. That's been made possible by strong operational performance, robust cash generation and good visibility on land sales. To date, approximately EUR 84 million has been deployed under the current program. This disciplined balanced approach is supporting growth, innovation and value creation while also maintaining a strong financial position.

That's the conclusion of the financial review. Stephen, I'll hand back to you for the outlook and to close out.

Thanks, Conor. So to bring it all together on Slide 18, we remain fully on track to deliver full year guidance. We are reiterating our earnings per share target of EUR 0.195 for full year 2025, underpinned by a strong operational momentum and a healthy forward order book. We expect to deliver approximately 1,500 Homebuilding units this year with Partnerships contributing around EUR 400 million in revenue. This reflects the scale and the consistency we are now achieving across both segments.

On the capital side, we are making real progress in optimizing our land portfolio with EUR 100 million of land sales targeted across '25 and '26. And our landbank remains a core strength, giving us the capacity to deliver between 2,600 and 3,600 units per year all the way to 2030. Notably, we are achieving this growth while reducing the net debt and returning value to shareholders by expanding our buyback program to EUR 105 million today.

To wrap things up on Slide 19 and 20, we have our differential investment case. We will conclude -- I want to conclude by emphasizing 3 things: building better strategy set out the direction, and we are executing on it with consistency. Standardization and manufacturing are improving our cost control and speed with benefits already visible in margin and program predictability. Partnerships are now a material first half contributor and our land strategy balances visibility with capital efficiency. We have strong momentum into the second half and beyond. Glenveagh is uniquely positioned with strong visibility on future delivery for the balance of this year and beyond. All of this gives us real confidence for Glenveagh's ability to deliver sustainable value well into the future.

With that, I'll pass you over to Laura for any questions you may have, and thank you.

[Operator Instructions] We will now take our first question from Colin Sheridan of Davy.

Just maybe starting on Partnerships. Maybe you could talk a little bit about what the pipeline looks at this point in time. And I guess, with the changes we're likely to see from government with additional funding and a change to housing for all, how you think that could evolve or how you'd like to see it evolve in the next year or so?

And maybe just on build cost inflation. I mean, you've referred to the sectoral employment orders in the statement. Just wondering how build cost inflation has been progressing more generally and how the vertical integration in the business has been playing its part and trying to mitigate that on site.

Thanks, Colin. Partnerships, yes, obviously made substantial progress. I suppose it's a hard one reputation. We've been at this for a period of time, and we're only really seeing the benefits of that flow through on the income statement now. Positively disposed to what we're seeing coming down the track. We're in negotiations on a number of new partnerships, quite substantial ones, some of them adjacent sites, some future sites that are very close to us. Proactive local authorities out there now looking at opportunities and very much looking at certain local authorities who have probably perfected the model and got it really well coming out there to a certain degree.

The Land Development Agency, obviously, very proactive now as well. A lot of their land is starting to come into the system. They're running a number of RFPs. So yes, we've obviously got 6 sites on the go. Some of them will come to completion next year, but we're very positively disposed to being able to replace them on an ongoing basis. And I think we've proven we're the delivery partner of choice out there with all government agencies at this stage. So happy to dispose that.

Build cost inflation, yes, you're right. On the sectoral employment agreement was 3%. Labor probably makes up 50%, 55% of the delivery out there. So that will inevitably pass through. On the material side, pretty good, a little volatility in 1 or 2 products, but again, in the either, it's probably not too bad out there. So probably happy where things are at. So somewhere between 2.5% and 3% is probably where we see things plateauing out for the next 12 months. We don't see anything on the horizon that makes us concerned out there.

On the manufacturing side, I think what you're really seeing from the manufacturing and innovative side is it's probably really driving that way we can deliver programs, being able to release contingency on sites. They're obviously positive to margins. So it's the capability of predictability, sticking with programs, the quality of the product, all of those things are coming. We're probably now moving to Phase 2 of the innovation side. The benefits of that and the cost that, that will bring to the table and the -- or the cost savings, it's too early to predict yet. But Phase 2, 2027, 2028, we really hope it will feed into the system, and we should see positive turn from that.

I think what you see in manufacturing over the next number of years is will be labor and labor increases as we're seeing through sectoral employment orders will be less of a dial mover in that CPI number as we transition more and more to premanufactured value.

And we'll now take our next question from Shane Carberry of Goodbody.

Just kind of a follow-up on Colin's question, I guess, in terms of that kind of gross margin point. In terms of the standardization piece of the jigsaw, is it fair to think of that as the main contributor to the kind of underlying growth in the gross margin this year? And just, Conor, you mentioned in the presentation about maybe the mix going forward into '26. So if you could expand on that a little bit more, it would be helpful.

And then the second question is just around the medium-term targets really, it sounds like even more confident in the medium term kind of maybe beyond all of our forecast horizons as well. So if you could just give me a little bit more color in terms of how that kind of your confidence has evolved? Is it more the policy side improving, underlying demand getting better? Or it is some of the kind of innovation that you're doing or maybe it's a bit of all of the above.

Just -- go ahead. Go ahead.

On the gross margin side then, yes, you're right. Standardization is a lot of the benefit. It's also sites of scale. It's also strong cost control, getting to the end of sites and having contingency in place. And you're seeing that particularly on the Partnerships side as well. And then mix, there's a good strong mix effect this year, which brings us to your sort of follow-up question around gross margin for next year. We've spoken since the start of this year about intake margins being around approximately 21% in the medium-term landbank. And what you're going to see is that transition happening in 2026. So you'll see margins of approximately 21% in 2026 is the way to think about it.

And just on the policy and medium to long term, positive what we said 2027, we feel very comfortable about the 1,900 units in Homebuilding. We're positive towards the National Planning Framework. I suppose for our view, just where the policy is evolving is, you know the government have instructed the National Planning Framework and instructed local authorities to now go out and start varying their development plans. So an element of local authorities will vary their plans, but they'll also start going into their new plan phase. And we see kind of 2027 into 2028 as the period of time that about 750,000 units of zoned land will come into the system. Some of that will be our strategic land as well. So I suppose that's the opportunity we're seeing coming down the track. Obviously, there will be sites of scale.

So yes, positive in the sense of, I suppose, you have a government who are really now on the front foot to drive their policy initiatives. They're probably seeing some challenges with the administration side, not moving as fast as they'd like. But I think, yes, they're really trying to make a difference out there. I think we're well set up that our landbank positions ourselves to 2030. We're obviously core product, 80% of our product is that own-door product, so in a nice place there. But obviously, we hope we can enhance that. And the more the vertical integration feeds into the system, the bigger the sites become, the faster, more efficient we can deliver into the future. So yes, we're in a good place.

We will now take our next question from Jonny Coubrough of Deutsche Bank.

Can I ask on the landbank? You said in the presentation that the landbank could support up to 3,600 units a year out to 2030. What other investments would you need to make to achieve this level of output across WIP, supply chain overheads? I think you set out some of this on Slide 17, but it would be useful just for a bit of clarification on that one. And then also, you've mentioned EUR 100 million of land site sales over 2 years. So from there, will you be maintaining about a EUR 450 million landbank? And then how would you be looking to replenish that land? Are you looking at land options or other avenues?

Jonny, yes. So look, obviously, last year was the big pivotal year. We bought 9,000 plots of land. There was a 3-year supply in 1 hit. Obviously, we got them at attractive 32,000 a plot. So we're very happy with that. We're not actively in the land market. We're always keeping an eye on it, but we're not actively investing. Probably strategic land is where we're looking at an element of because we know what will come down the track. So product that might come into the system in '29, '30, we're looking at those kind of sites. But we're not making a very big investment on that.

On the WIP side of it, I'll leave that. Conor, do you want to go on that?

Yes. The WIP is actually well invested. So we've obviously grow Homebuilding units from 1,500 to 1,900 over the next couple of years. But at the same time, we have a number of urban schemes where we're well invested on the apartment side, which we'd be seeking to forward fund in the future. So one in North County, Dublin and another one in Cork. So you could see maybe EUR 50 million go into WIP on a net basis there between now and 2027 to support growth into 2028. And we obviously have called out the office as a cash inflow, most likely in or around 2028. So WIP is well invested even to support that growth that's there.

And then on the Partnerships side, obviously, there's a prevalence of forward funding in that. So the investment there will be minimum from where we are at the moment. And then manufacturing-wise, it's the EUR 25 million, with EUR 10 million over the balance of this year, EUR 10 million next year and EUR 5 million in '27.

[Operator Instructions] And while we wait, I'm handing it over for the written question.

So we've had a question in from Glynis Johnson. She has asked regarding the admin costs for H1 '25. What drove step-up? And what is the guidance for FY '25 and medium term? Second, on land market, she's asked, given the competitive land market, but also the positive upside potential to your strategic land, is there scope to increase the land sales targeted? And lastly, can you elaborate on the facade production? Is this the Mauer system? And how many home units would this likely cover by 2027?

I'll take 1 and 2 there. On admin costs, H1 reflects the run rate from H2 2024. So consensus is around EUR 51 million of administration costs for 2025. So we're comfortable with where that is. And over the medium term, we've said we want to reduce admin costs to less than 5% of revenue and are on track to do that. The land market and potential for more land sales. And what we'd say on that is we have greater certainty on the EUR 100 million of land sales than we had a number of months ago. However, the likelihood of it being materially in excess of EUR 100 million has reduced. So EUR 100 million is a good number to have across '25 and '26.

And Stephen, do you want to take the Mauer system?

Yes, you're right on that, Glynis. Obviously, we're the sole holder of that license in Ireland, and we think it's a huge opportunity for us. The potential savings and how this can evolve is it will make huge benefits for our prelims on site. It's a better, more attractive looking product. We've had some of the local authorities out down to look at the finished product. They're really impressed with it. So they're actually -- the quality of it and the aesthetics of it, it's really pleasing.

We are putting it into production in '26. First homes are going out in 2027. And we're going to take it on a phased basis. So probably 10% of the portfolio will start with, but the ambition is to get it right across the portfolio by a period of time. Like we've done with all other innovation and manufacturing, we've taken a step basis to us. But I suppose the real benefit is if we see success, we can start factoring that into us as we acquire new lands and right across the portfolio. So hopefully, we'll see the positive turn from that into 2027.

There are no further questions in queue and audio. And I will now hand it back to Stephen for closing remarks.

Thank you, Laura, and thank you all for joining today. We really appreciate it. Obviously, we'll be engaged with a number of you over the next number of days and weeks and look forward to seeing you. And thank you very much for joining us today.

Thank you. That concludes today's call. Thank you for your participation. You may now disconnect.