Barratt Redrow (BTRW) H1 2026 earnings summary

Executive summary

• Delivered resilient operational and financial performance in a subdued market, with 7,444 home completions (up 4.7% year-over-year) and near-complete Redrow integration, confirming nearly all of the £100m synergy target.

• Maintained a strong land position and balance sheet, positioning three brands for future growth and high customer satisfaction.

• Focused on disciplined execution, cost optimization, and capital efficiency.

• Statutory profit before tax increased 83.8% to £156.2m, reflecting reduced Redrow integration and PPA costs.

Financial highlights

• Revenue grew 10.5% year-over-year to £2,632.1m, driven by higher completions and a 4.9% increase in average selling price.

• Adjusted profit before tax (pre-PPA) was £199.9m, down 13.6% year-over-year, mainly due to higher net interest costs and lower JV profits.

• Adjusted operating profit (pre-PPA) was £210.2m, with margin down to 8.0% from 8.9%.

• Adjusted EPS before PPA adjustments was 10.0p; interim dividend declared at 5.0p per share, maintaining a 2x cover ratio.

• Net cash at period end was £173.9m, with year-end net cash expected at £400m–£500m.

Outlook and guidance

• FY26 total completions expected in the range of 17,200–17,800 homes, including ~600 JV completions.

• Underlying pricing to remain broadly flat; build cost inflation guided at ~2% for the year.

• Adjusted finance charge expected at ~£30m; building safety spend to be ~£250m.

• Average outlets to be flat in FY26, with a significant uptick to 425–435 in FY27, driven by synergy and organic growth.

• Full-year adjusted profit before tax (pre-PPA) expected within consensus range of £558m–£617m.