Bellway (BWY) H1 2026 earnings summary

Executive summary

• Delivered a robust first half with 4,702 home completions, up 2.7% year-over-year, despite a challenging market and softer selling period.

• Underlying operating margin at 10.5%, down from 11.0% prior year, with an order book of 4,442 homes and a stable land bank of 94,393 plots.

• Interim dividend per share increased by 9.5% to 23.0p; £64m of a £150m share buyback completed by March 2026.

• Trading conditions improved markedly since January 2026, with increased homebuyer interest and reservations.

• Ongoing Middle East conflict has not materially impacted trading but increases risks of inflation and mortgage market volatility.

Financial highlights

• Total revenue rose 6.3% to £1,520.1m; total housing completions up 2.7% to 4,702 homes.

• Average selling price increased 3.7% to £322,180, driven by geographic and mix changes.

• Underlying operating profit up 1.5% to £159.0m; underlying profit before tax at £151m.

• Gross margin decreased by 20 bps to 16.2% due to higher incentive usage and low build cost inflation.

• Net asset value per share rose to 3,005p; adjusted gearing at 10.3%; net debt at period end £72m.

Outlook and guidance

• FY26 volume output guidance: 9,300–9,500 homes, with social completions at ~20%.

• Average selling price for FY26 anticipated at £325,000; operating margin expected to remain around 10.5%.

• Adjusted operating cash flow for the full year targeted at £750–£800m, significantly ahead of prior year.

• Targeting volume output of around 10,000 homes by FY28, subject to stable market conditions.

• Land spend expected to be £500–£600m, with a continued focus on capital efficiency and cash generation.