Bellway (BWY) Trading update summary

Trading performance and market conditions

• Customer demand moderated in recent weeks after a strong start to the spring selling season, with reservation rates slightly down year-on-year.

• Incentive usage averaged around 5%, and cancellation rates remained low at 10%.

• Upward pressure on building material costs due to higher fuel and energy prices, with active cost management measures in place.

• Average number of trading outlets was 233, with plans to open over 40 new outlets in the second half of the year.

• Private reservation rate per outlet per week was 0.65, with bulk sales contributing positively.

Order book, land investment, and financial position

• Forward order book stood at 5,345 homes valued at £1,570m as of 29 May 2026.

• Disciplined land investment continued, with 6,744 plots contracted since August 2025 and a strengthened strategic land bank of around 47,000 plots.

• Net debt was £236m at the end of May 2026, with adjusted gearing expected to remain low at 5-10% by year-end.

• £150m share buyback program is progressing, and interim dividend increased to 23.0p per share.

• Underlying dividend cover for the full year expected to be around 2.5 times.

Outlook and strategic focus

• FY26 volume output guidance reiterated at 9,300–9,500 homes, with underlying operating profit expected between £320m–£330m.

• Ongoing focus on capital efficiency and monetisation of land bank to support cash generation and shareholder returns.

• External risks include geopolitical tensions and domestic political uncertainty, as well as renewed inflationary pressures.

• Next trading update scheduled for 11 August 2026.