Bellway PLC

Latest Results (26.11.2025):

Bellway PLC — Full year results for the year ended 31 July 2025 (FY25; includes Q4 2025 trading) show a strong operational and financial recovery: completions rose 14.3% to 8,749 homes, revenue increased to £2,782.8m (+16.9%) and underlying profit measures improved materially (underlying operating profit £303.5m, underlying PBT £289.1m). The Board is returning capital (£150m buyback) and increasing the total dividend to 70.0p, while balance sheet strength improved to net cash of £41.8m at year‑end.

Headline financials

Revenue £2,782.8m (+16.9%); underlying gross profit £456.8m (+19.9%); underlying operating profit £303.5m (+27.5%) and underlying profit before tax £289.1m (+27.9%). Underlying EPS 176.7p (+30.7%); reported EPS 132.8p (+20.9%). Underlying operating margin 10.9% (up 90bps).

Volumes and pricing

Housing completions 8,749 (+14.3%) with average selling price £316,412 (up ~2.8% y/y). Private completions rose 20.3% to 6,924. Management targets ~9,200 homes in FY26 and c.10,000 homes by FY28.

Cash, capital allocation and returns

Adjusted operating cashflow increased to £638.9m (FY24: £425.2m). Year‑end net cash £41.8m (vs net debt £10.5m in 2024). Board initiated a £150m share buyback and proposed total ordinary dividend 70.0p (up 29.6%), maintaining underlying dividend cover of 2.5x.

Balance sheet and land position

Net assets £3,556.2m; NAV per share 2,989p (up 2.6%). Land bank 95,704 plots (broadly flat); owned & controlled plots 47,144. Management continues a largely replacement-only land strategy and contracted to buy 8,120 plots in FY25.

Adjusting items and provisions

Net legacy building safety expense (pre‑tax) £51.8m in FY25 (increase in SRT and related provisions). Total legacy building safety provisions since 2017 stand at £707.5m with £516.4m remaining at 31 July 2025. CMA-related voluntary contribution and legal costs recognised as an adjusting item totalling £15.4m.

Profitability metrics and targets

Underlying pre‑tax RoE 8.2% (up 170bps) and RoCE 8.7% (up 160bps). Management targets significant RoE improvement and has set a challenging FY28 LTIP stretch target of 14% underlying pre‑tax RoE (requires exceptional execution and market support).

Trading since year‑end & outlook

Early FY26 trading shows softer consumer sentiment; 10‑week private reservation rate per outlet (ex bulk) at 0.48 vs 0.49 year‑earlier. Order book at 5 Oct 2025: 5,285 homes valued £1,526.9m. FY26 guidance: average selling price ~£320,000 and underlying operating margin ~11.0%; volume target ~9,200 homes.

Customer, operational and sustainability highlights

Bellway retained five‑star HBF customer satisfaction status for the ninth consecutive year (HBF score 95.4%). Timber frame facility “Bellway Home Space” progressing to supply frames from early 2026; timber frame target ~30% of output by 2030. Scope 1 & 2 emissions down 48% vs 2019; Net Zero target by 2045.