Barratt Redrow (BTRW) investor relations material

Executive summary

• Reservation rates rose 6.3% year-over-year, with private reservations up 3.2%, supported by PRS and multi-unit sales, reflecting resilient demand despite macroeconomic uncertainty.

• Forward order book is 11% higher, supporting guidance for 17,200–17,800 home completions, with adjusted profit before tax expected in line with consensus.

• Integration of Redrow is nearly complete, with £100m cost synergies confirmed and £50m to be realized this year.

• Maintained disciplined capital allocation, selective land investment, and cost control.

• Land approvals are lower year-to-date, reflecting a selective approach amid fewer attractive opportunities.

Financial highlights

• Year-end net cash guidance raised to £550m–£650m, about £150m ahead of previous guidance, due to land spend timing and legacy payments.

• Land spend guidance reduced to £700m–£800m for FY 2026, down from £800m–£900m.

• Build cost inflation for FY 2026 expected at 2% (1% H1, 3% H2), with limited inflationary pressure currently.

• Delivered 3,274 home completions in the quarter; year-to-date completions at 10,718 homes.

• £33.3m deployed on share buybacks in the quarter; £83.7m cumulative in FY26.

Outlook and guidance

• Guidance on completions unchanged at 17,200–17,800 (including c.600 JV homes), with strong order book and positive spring trading.

• Adjusted profit before tax expected in line with consensus (£568m, range £534m–£586m).

• Cautious on land approvals, guiding 7,000–9,000 plots for FY 2026.

• Outlet count for FY 2027 expected at 425–435, with further growth dependent on approvals.

• Monitoring geopolitical risks and potential for higher-for-longer interest rates.