Bellway (BWY) H2 2025 earnings summary

Executive summary

• Achieved strong FY25 performance with 8,749 home completions, up 14.3%, and operating margin rising to 10.9%, driving operating profit to £303 million.

• Order book remains robust despite slower trading since April 2024, with 5,307 homes at 31 July; on track to meet FY26 volume guidance of 9,200 homes.

• Announced a £150 million share buyback, reflecting confidence in capital position and future cash generation.

• Net private sales rate per outlet per week increased to 0.57.

• Underlying return on equity improved to 8.2% from 6.5% year-over-year.

Financial highlights

• Total revenue grew 16.9% to £2,782.8m, with housing revenue up 17.5% to £2,768.3m.

• Private output grew 20.3% to 6,924 homes; social output fell 3.7% to 1,825 homes, normalizing at 21% of completions.

• Average selling price (ASP) increased 2.8% to £316,000, with private ASP at £350,400 and social at £187,300.

• Gross margin improved by 40bps to 16.4%; underlying PBT up 27.9% to £289 million.

• Proposed full-year dividend of £0.70 per share, up 29.6%.

Outlook and guidance

• FY26 guidance: 9,200 completions (20% social), ASP ~£320,000, operating margin ~11%, admin overhead ~£170 million.

• Multi-year plan targets 10,000 homes by FY28, with outlet growth and increased bulk sales.

• Strategic focus on cash generation, capital efficiency, and shareholder returns.