Barratt Redrow (BTRW) H2 2026 earnings summary

Executive summary

• Delivered solid operational and financial performance in a subdued market, supported by strong brands, disciplined execution, and completion of the Redrow integration, with synergies on track.

• Maintained a robust balance sheet and enhanced capital return program, including significant share buybacks and increased shareholder returns.

• Total home completions rose 5% year-over-year to 17,667, with affordable completions up 27.4%.

• Focused on cost efficiencies, streamlined house types, and leveraging multi-branding to optimize land and outlet growth.

• Customer satisfaction remained high, with 17 consecutive years of HBF 5-star ratings and 122 NHBC Pride in the Job awards.

Financial highlights

• Revenue increased 6.6% year-over-year to £6,055.0m, driven by higher completions and average selling price.

• Adjusted pre-tax profit (PBT) was £572.8m, down year-over-year due to higher net interest and lower JV profits.

• Adjusted gross margin declined to 15.3%, with operating margin at 9.9%.

• Net surplus of £61.4m at year-end, compared to net indebtedness of £37m last year.

• Statutory PBT rose 48.2% to £363.5m.

Outlook and guidance

• FY27 guidance: 17,500–17,900 completions, average outlets stable at 405, and build cost inflation of 3–4%.

• Affordable completions expected to normalize at 20% of total.

• FY27 year-end net cash projected at £400m–£500m.

• Capital return of £400m planned for FY27, mostly via share buybacks.

• Expected £300m building safety spend and £340m land creditor settlements in FY27.