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 £100 million synergy targets by December.

• Maintained a strong land position and robust balance sheet, supporting three brands and future growth.

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

• Achieved high customer satisfaction, with 115 NHBC Pride in the Job Awards and a 5-star HBF rating for 16 years.

Financial highlights

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

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

• Adjusted gross margin before PPA adjustments declined to 15.0% from 17.0%.

• Adjusted operating profit before PPA adjustments was £210.2m; margin fell to 8.0% from 8.9%.

• Net cash at period end was £173.9m, supporting dividend payments and share buybacks.

Outlook and guidance

• FY26 total completions expected in the range of 17,200–17,800 homes, including ~600 JV completions; affordable mix expected at 20%.

• Underlying pricing to remain broadly flat; build cost inflation for FY26 guided at around 2%, with procurement synergies included.

• Net cash at year-end expected between £400m–£500m; adjusted finance charge c.£30m.

• Building safety spend to remain at c.£250m for the year.

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