Bellway (BWY) H2 2026 earnings summary

Executive summary

• FY26 completions rose 10.8% to 9,695 homes; revenue increased 13.6% to £3,162.2m and underlying operating profit rose 5.6% to £320.6m.

• Underlying operating margin fell 80 bps to 10.1%, amid lower gross margin, higher overheads and market pressure.

• Adjusted operating cash flow rose 36% to £868.6m; FY27 output is guided at 9,000–9,400 homes, with longer-term capacity for at least 10,000 homes and 15% underlying pre-tax RoE as conditions improve.

Financial highlights

• Housing revenue increased 13.6% to £3,145.1m; ASP rose 2.5% to £324,404, reflecting geographic and product mix.

• Gross profit rose 9.0% to £497.8m, while underlying gross margin fell 70 bps to 15.7%.

• Underlying profit after taxation was £218.7m and underlying EPS was 187.8p; reported profit after taxation was £193.4m and EPS was 166.1p after adjusting items.

• Proposed total dividend increased 7.1% to 75.0p per share.

Outlook and guidance

• FY27 guidance: 9,000–9,400 homes, ~20% social housing contribution and ~£325k overall ASP.

• FY27 guidance includes at least £100m legacy building safety spend, ~£500m land spend and ~£225m shareholder returns; a £150m share buyback is planned.

• Gross margin is expected to reduce in FY27 amid market conditions and a higher bulk-completion contribution; recovery is expected from FY28 as higher-margin land flows into completions.

• More than 56% of FY27 volume was secured at 2 October, including completions to date, based on 9,200 homes at the guidance midpoint.

• Dividends and buybacks are expected to total ~£450m across FY26 and FY27.