Cairn Homes welcomes 'exceptionally strong' start to 2025 despite falling profits 

The Irish homebuilder said it increased investment in construction activities, raising its revenue and profit forecasts for 2025

Michael Stanley, Chief Executive Officer of Cairn Homes.

Irish property developer Cairn Homes saw its revenue fall by more than 20% in the first six months of this year, falling to €284.5m in the period. 

The fall in revenues, which totalled €366.1m in the same period last year, follows a series of acquisitions by the developer. 

Cairn said it took over scaled sites in off-market transactions which will deliver around 2,000 homes in the medium term, predominantly for first-time buyers. 

It also progressed option agreements and joint ventures arrangements to secure an additional c.1,500 units.

The Irish homebuilder welcomed "exceptionally strong sales" in the first half of 2025, notably from first-time buyers, which it said drove €625m growth in its closed and forward order book to 4,092 new homes , totalling €1.54bn net sales value. 

The company's gross profit fell to €63.1m, down from more than €80m in the same period in 2024. Its operating profit dropped from €61.4m to €42.7m, resulting in an operating margin of 15% which Cairn said reflected its historically weighted trading in the second half of the year, as well as transaction timing and mix compared to the first half of 2024. 

The developer reported a private weekly sales rate of 4.1 new homes per active selling site , driven by exceptionally strong demand from first-time buyers. It also said it would release its second Croí Cónaithe (Cities) approved development in the second half of this year, following its first launch earlier this year.

Cairn said it maintained its average sales price of €387,000 in the first half of this year, including the delivery of well-located Social & Affordable scaled apartment developments for its State partners at lower sale prices.

Land acquisitions

To date, the developer said it has acquired land which will deliver around 900 new homes and exercised a joint venture option which will deliver 700 new homes.

Last month, Dairygold confirmed that it sold its Creamfields development property to Cairn Homes for €25.6m.

Creamfields is the former CMP (Cork Milk Producers) Dairies site on the Kinsale Road in Cork City, which Dairygold received full planning permission in 2022, for the development of 606 residential units and other commercial units.

Dairygold partnered with Cairn Homes to deliver the residential element of the development, and both parties engaged with housing body Respond to develop a mixed residential offering of cost rental, affordable and Part V social accommodation, which was supported by Cork City Council.

Looking forward, Cairn said it was upgrading its full-year guidance for 2025, forecasting revenue of €945m, which changed from previous guidance that it would exceed 10% revenue growth.

It is also now forecasting an operating profit of between €160m and €165m, up from previous guidance of €160m. For 2026, Cairn is forecasting revenue of between €1.02bn and €1.05bn, and an operating profit of between €175m and €180m.

"I am also very pleased to report that the business is performing strongly, our strategy is working, and we have doubled down on investment in our construction activities," said Cairn CEO, Michael Stanley. 

"As this unwinds, it will lead to a strong second half which is why we are raising our guidance today for 2025 and also introducing new guidance as a result of increased housing output for 2026.

"In keeping build cost inflation under control, maintaining average sales price consistency, and placing a strong emphasis on energy efficiency, a well-designed Cairn home represents an attractive proposition for first time buyers."