Cairn Homes delivered substantial increases in revenue and operating profit last year as its sold an additional 500 homes.

The homebuilder brought in revenue of €859.9m, up 29% from €666.8m in 2023, and made an operating profit of €150m, up 32% from €113.4m year-on-year.

Cairn sold 2,241 units as compared to 1,741 in 2023, and average selling prices declined from €389,000 to €383,000. The company credited "significant efficiency and innovation" for the more "competitive price point".

The group also claimed build cost inflation of less than 2% due to its "continued focus on driving efficiencies" through scale, innovation and digital construction.

Cairn commenced construction of 4,100 new homes, including 10 large-scale developments, up from 2,162 the previous year, and the firm expects to significantly increase construction work-in-progress spending in 2025 as a result.

As of Wednesday (26 February), Cairn had a closed and forward order book of 2,593 homes with a combined value of €989m, an improvement of 5% versus the same time last year (2,473 worth €946m).

Operating costs amounted to 4.3% of revenue, or approximately €37m. In 2023, operating costs amounted to 5.1% of revenue, or around €34m.

Basic earnings per share increased 41% year-on-year from 12.7 cent to 17.9 cent, and the company returned €115.3m to shareholders in buybacks and dividends.

Operating cash flow of €134.7m represented an increase of 26% from €107m in 2023, and the company invested €99.5m in land acquisitions, up from €57.9m the year prior.

Net debt rose from €148.3m to €154.4m, and earlier this month, the company refinanced its sustainability-linked syndicate facility with AIB, Bank of Ireland and Home Building Finance Ireland, increasing it by €75m to €402.5m and extending the duration to June 2029 with the option of a further year.

Cairn now has access to €460m of facilities to support medium-term growth.

During 2024, Carin entered into forward fund transactions to build 2,150 social and affordable homes, and it has commenced over 2,000 new homes at the Seven Mills development in west Dublin.

Looking ahead, Cairn expects 2025 to be "another strong year," with revenue growth of more than 10% and operating profit of €160m.

“We took a material step, right across our business, in operational performance and volume delivery in 2024," said Michael Stanley, CEO of Cairn Homes.

"We also made significant progress in our financial performance based on a foundation of continuous and substantial investment in the delivery of new homes for private buyers and for the State.

"We will continue to be relentless in driving efficiencies through scale, innovation, digital and sustainable construction to deliver new homes at pace, scale and value for money. We look forward to another strong year of growth in housing output."

In its outlook, Cairn noted the extension of the Help to Buy and First Home schemes to 2030, and annual targets of 50,000 homes per annum, rising to 60,000 by the end of the decade.

Additionally, the company highlighted the macro health of the domestic economy, and first-time buyer drawdowns of €3.1bn in 2024, up 15% year-on-year.

"The newly elected government has put new home delivery front and centre in its Programme for Government," Stanley added.

"While policymakers give due consideration to the strategic challenges surrounding housing delivery in the medium term, there are numerous quick wins that can deliver substantially more homes in the short term.

"This is the time for the government to be brave and I have confidence that we and the broader industry will respond in kind."

Photo: Michael Stanley (right), CEO of Cairn Homes and John Coleman, CEO of the Land Development Agency (LDA). (Pic: Damien Eagers Photography)