Barratt Redrow PLC

BTRW

Equity

ISIN GB0000811801 / Valor 371855

LSE London Stock Exchange, SETS (2026-10-30)

GBP 3.23+1.16%

Barratt Redrow PLC
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About company

Barratt Developments plc and Redrow plc are publicly listed UK housebuilders that acquire land, design, construct and sell residential homes across England, Scotland and Wales; Barratt operates as one of the largest volume builders offering a broad mix of apartments and family houses, while Redrow tends to focus on higher‑specification family homes and masterplanned developments. Their businesses combine land sourcing and plot development, on‑site construction, sales through regional showhomes and estate agents, and after‑sales services, and they participate in affordable housing and shared‑ownership programmes as part of planning obligations. Revenue and margins are driven by housing market demand, land availability and planning outcomes, and both companies are exposed to interest rates, input costs and changes in UK housing policy.

Summarized from source with an LLMView SourceSector: Industrials

Completions and margins

7,444 total home completions in H1 FY26, 4.7% ahead of the aggregated comparable period. Adjusted operating margin (before PPA) was 8.0% (HY25 aggregated: 8.9%A; reported: 9.3%R), reflecting modest margin compression versus the prior aggregated period.

Profit metrics

Adjusted operating profit before PPA: £210.2m (‑0.3% vs aggregated £210.8m). Adjusted profit before tax before PPA: £199.9m (‑13.6% vs aggregated £231.4m). Statutory profit before tax: £156.2m, with a reduced impact from Redrow transaction/integration costs and PPA adjustments. The reclassification of legacy property provision finance charges increased adjusted profit before tax by c. £19.6m in HY26.

Integration & synergies

Redrow integration progressing in line with the Group’s £100m cost synergy target and with strong progress on revenue‑synergy sites through planning. Key actions include divisional optimisation (41 → 32), consolidation of central/support functions and harmonised purchasing to capture volume rebates.

Sales, reservations and forward book

Underlying net private reservation rate in H1 was 0.55 (aggregated HY25: 0.54). Net private weekly reservation rate from 29 Dec 2025 to 1 Feb 2026 was 0.59 (2025: 0.60), with no PRS/multi‑unit contribution in either period. Forward sales at 1 Feb 2026: 11,168 homes (£3,407.8m), with 7,277 homes exchanged or contracted.

Balance sheet & capital

Net cash of £173.9m after dividends and share buybacks. The group states it is well positioned to deliver volume growth, margin progression and capital returns through the cycle, supported by a strong land bank and delivered synergies.

Outlook

FY26 completions guidance remains 17,200–17,800 (including ~600 JV completions), outcome dependent on Spring selling season. Full‑year adjusted PBT (after reclassification of legacy building safety finance charges as adjusted items) is expected to be within the current consensus range (£558–617m excluding PPA adjustments), subject to market conditions and sales activity.

Quality and sustainability

Continued sector leadership on quality and ESG: 115 NHBC Pride in the Job Awards, HBF 5‑Star customer rating for 16 consecutive years, and CDP Climate A List recognition for a fourth successive year.

Summarized from source with an LLMView Source

Key figures

-15.8%1Y

-20.9%3Y

-51.3%5Y

Performance

37.0%1Y

30.7%3Y

32.0%5Y

Volatility