Barratt Redrow (BTRW) Q4 2026 TU earnings summary

Executive summary

• Delivered 17,667 home completions, up 5% year-over-year and at the upper end of guidance, with adjusted profit before tax in line with market expectations.

• Successfully integrated Redrow, confirming £100 million cost synergies, with £73 million delivered ahead of schedule.

• Achieved 122 NHBC Pride in the Job awards and maintained a 5 Star HBF rating for the 17th year, leading the sector.

• Maintained sales momentum through incentives and strong balance sheet with year-end net cash of £772 million.

• Updated capital allocation prioritizes share buybacks, with £400 million to be returned in FY27.

Financial highlights

• Year-end net cash position of £772 million, £170 million above April guidance, with average daily net cash of £122 million.

• Average selling price increased 2.3% to £352,000, with private ASP up 3.8% to £396,000, driven by larger homes and regional mix.

• Forward order book at £2.8 billion (9,728 homes), slightly down year-over-year.

• Adjusted items include £159-160 million in charges, with £95 million for legacy property provisions.

• Administrative expenses reduced to £330 million, with further cost base reduction from Redrow synergies.

Outlook and guidance

• FY27 home completions expected between 17,700 and 18,200, including about 600 from JVs.

• Build cost inflation forecast at 3%-4% for FY27, with materials at 4%-5% and labor at 2%-3%.

• Average sales outlets for FY27 expected at around 415, slightly below previous guidance due to slow planning approvals.

• Land approvals for FY27 targeted at 6,000–8,000 plots, subject to market conditions.

• Committed to returning 50% of earnings to shareholders, with a minimum £100 million annual share buyback.