Barratt Redrow (BTRW) Q4 2025 TU earnings summary

Executive summary

• Adjusted profit before tax delivered in line with consensus despite temporary delays in completions and planning approvals, maintaining confidence in medium-term targets and long-term demand for homes.

• Completed 16,565 homes, slightly below guidance due to timing issues in London PRS, multiunit sales, and weaker London investor demand; these units will be delivered in FY 2026.

• Integration of Redrow progressing ahead of schedule, with over two-thirds of £100m cost synergies already confirmed, new divisional structure implemented, and revenue synergies advancing.

• Reservation rates improved year-over-year, and forward sales position strengthened, supporting confidence in medium-term growth targets.

• Maintained industry-leading quality and service, winning the most Pride in the Job Awards for the 21st consecutive year and retaining five-star housebuilder status.

Financial highlights

• Adjusted profit before tax (pre-PPA) delivered in line with consensus; estimated adjusted items charge of £229m, including £102m for Redrow transaction and restructuring, £29m for CMA commitments, and £98m for legacy property provisions.

• Net cash at year-end stood at £772m, supporting ongoing share buyback program of at least £100m per annum.

• Total home completions for FY25 were 16,565, down 7.8% from 17,972A in FY24.

• Total forward sales at 29 June 2025 were £2,921.6m (9,835 homes), up 10.5% in value and 4.3% in units year-over-year.

• Net private reservations per active sales outlet per week rose to 0.64, up 16.4% from 0.55A in FY24.

Outlook and guidance

• Targeting delivery of 22,000 homes per year from 32 divisions and around 500 outlets in the medium term.

• FY 2026 completions expected between 17,200 and 17,800, including c. 600 from JVs, with medium-term ambition unchanged.

• Build cost inflation for FY 2026 guided at 1–2%, including procurement synergy savings.

• Expecting closing net cash of £300–400m at end of next year, with increased land spend and ongoing legacy property spend.

• Ongoing planning delays and slow local implementation of reforms may constrain outlet growth in FY26.