Bellway PLC

Latest Results (18.05.2026):

Bellway PLC — interim results for the half year ended 31 January 2026 (H1 FY26): the Group reported a robust first-half performance with revenue up 6.3% to £1,520.1m, housing completions up 2.7% to 4,702 homes and underlying operating profit of £159.0m (underlying margin 10.5%). Management reconfirms FY26 targets of underlying operating profit of £320m–£330m, expects volume output of 9,300–9,500 homes and an average selling price around £325,000, while continuing capital returns via an increased interim dividend (23.0p) and an active share buyback.

Financial headline

Revenue £1,520.1m (+6.3%); underlying operating profit £159.0m (+1.5%); underlying operating margin 10.5% (down 50bps). Underlying EPS 91.2p; statutory EPS 84.5p. Adjusted operating cashflow was £314.1m (H1 FY25: £366.1m).

Guidance and outlook

Bellway is on track to deliver FY26 underlying operating profit of £320m–£330m, expects FY26 volume 9,300–9,500 homes and FY26 average selling price ~£325,000. Management expects full-year underlying operating margin broadly similar to H1 (~10.5%) and cites improved reservations since the start of the calendar year but flags geopolitical and mortgage-market volatility as risks.

Capital returns and balance sheet

Interim dividend raised to 23.0p (H1 FY25: 21.0p) with underlying dividend cover expected ~2.5x. £150m buyback launched Oct 2025; ~£64m of shares repurchased as at 13 March 2026. Period-end net debt £72.0m (31 Jan 2025: £8.0m) after dividends and buybacks; adjusted gearing including land creditors 10.3%.

Operational and landbank position

Completions 4,702 homes (private 3,702; social 1,000); average selling price £322,180. Land bank of 94,393 plots (owned & controlled 47,793), ~5.3 years’ supply. Average outlets ~244 (closing 238); forward order book 5,311 homes valued at £1,551.6m (13 Mar 2026).

Cashflow, costs and efficiency

Adjusted operating cashflow down to £314.1m in H1 with management targeting a significant increase in H2. Build cost inflation described as low single digits in H1; incentives averaged 4.5–5.0%. Investment in timber-frame capacity (Bellway Home Space opened Jan 2026) to improve build times and WIP efficiency; target timber-frame mix ~30% by 2030.

Legacy building safety and provisions

Net adjusting items relating to legacy building safety were £10.7m pre-tax in H1 (including a £6.5m adjusting finance expense). Bellway states total set-aside for legacy buildings since 2017 of c.£718m, with £211.7m spent and a remaining provision of £506.5m at 31 Jan 2026; remediation work is ongoing (172 buildings complete or underway).

Other highlights

Adjusted gross profit £247.0m (underlying gross margin 16.2%); underlying admin costs increased (to support growth and timber-frame operations) with full-year underlying admin expected £170m–£175m. Bellway retained a five-star HBF customer satisfaction rating for the tenth consecutive year.