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 softer selling period and subdued trading in autumn.

• Underlying operating margin was 10.5%, down 50bps from prior year, with an order book of 4,400–4,442 homes and a stable land bank of over 94,000 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; average selling price increased 3.7% to £322,180, driven by geographic and mix changes.

• Gross margin reduced by 20bps to 16.2%, reflecting higher margin land offset by increased incentives and low build cost inflation.

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

• Net asset value per share rose to 3,005p; underlying ROCE steady at 8.9%.

• Adjusted gearing remains low at 10.3%; net debt at period end: £72 million.

Outlook and guidance

• FY26 volume output guidance: 9,300–9,500 homes, with ASP expected at £325,000 and social completions at ~20%.

• Underlying operating margin for FY26 expected to remain around 10.5%; admin overhead forecast at £170–£175 million.

• Adjusted operating cash flow targeted at £750–£800 million for the full year.

• Land spend expected at £500–£600 million, maintaining a replacement-only strategy.

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