Barratt Redrow (BTRW) H2 2025 earnings summary

Executive summary

• Delivered resilient operational and financial performance in a challenging market, with the Redrow integration progressing well and cost synergies ahead of target.

• Maintained a strong balance sheet and robust net cash position, supporting growth and capital allocation plans.

• Now operating with three differentiated brands and an enhanced land position following the Redrow acquisition.

• Achieved high customer satisfaction, with all three brands rated excellent on Trustpilot and strong external accreditations.

Financial highlights

• Adjusted profit before tax was £591.6 million pre-PPA, up 53.7% year-over-year; adjusted PBT post-PPA was £488.3 million, up 26.8%.

• Adjusted EPS was 30.8p; full-year dividend increased by 8.6% to 17.6p.

• Gross margin improved by 30 basis points to 17.4%, and adjusted operating margin rose 50 basis points to 10.7%.

• Net cash at year-end was £773 million.

• Revenue was £5,578.3 million, a 2.0% decrease year-over-year on an aggregated basis.

Outlook and guidance

• FY26 guidance: 17,200–17,800 total home completions, with affordable housing at approximately 20%.

• Adjusted administrative costs expected around £400 million in FY26, with £45 million in total synergies targeted.

• Build cost inflation expected at 1–2%, and year-end net cash expected between £400 million and £500 million by June 2026.

• Ordinary dividend cover maintained at 2.0x adjusted EPS (ex-PPA), with a £100 million annual share buyback from FY26.

• Medium-term guidance targets 22,000 home completions, operating margin recovery to 15%, and return on capital employed back to 20%.