Bellway (BWY) H1 2025 earnings summary

Executive summary

• Achieved strong first half with 11.9% growth in completions to 4,577 homes and 12.3% revenue increase, supported by robust demand and improved reservation rates.

• Underlying operating margin held steady at 11.0%; underlying operating profit up 11.9% to £156.6m; statutory profit before tax up 19.9% to £140.8m.

• Order book grew by 19-20% to over 4,700 homes, supporting future growth; outlet numbers averaged 248.

• Maintained five-star homebuilder status and received multiple industry awards for quality, staff development, and carbon innovation.

• Focus on improving ROCE (currently 8.9-9%) and capital efficiency to drive shareholder returns.

Financial highlights

• Volume output increased 11.9% to 4,577 homes, with private completions up 17.5% to 3,617 and social completions down 5.3% to 960.

• Average selling price was just over £310,000, up 0.4% year-over-year; gross margin stable at 16.4%.

• Underlying profit before tax rose 11.9% to £150m; underlying EPS up 12% to 90.3p; interim dividend increased 31.3% to 21.0p per share.

• Net asset value per share increased to 2,960p; net assets at £3,522.4m; net debt reduced to £8m; adjusted gearing at 8.5%.

• Operating cash flow strong, with low net debt and robust liquidity position.

Outlook and guidance

• Guidance unchanged: targeting at least 8,500 home completions for FY25, including c.1,900 social homes, and ASP around £310,000.

• Operating margin expected to approach 11%; admin expenses to rise by about 10% to just below £160m; dividend cover at 2.5x.

• On track for at least 20% cumulative volume growth over two years to FY26; potential to deliver 10,000 homes in FY27 if market conditions hold.

• Order book expected to build through H2, supporting further growth into FY26.