UK's Barratt Redrow FY revenue rises; cuts annual home completions target
UK's Barratt Redrow FY revenue rises; cuts annual home completions target
Overview
UK homebuilder reported FY26 revenue up 6.6% yr/yr, with 17,667 homes completed
Adjusted profit before tax fell 7.1% yr/yr amid margin pressure and market challenges
Company completed Redrow integration, delivered £73 mln cost synergies, and announced £400 mln capital return for FY27
Outlook
Company expects FY27 total home completions of 17,500-17,900, down from prior 17,700-18,200 guidance
Company anticipates c. 40% of FY27 completions will be delivered in first half
Barratt Redrow says higher mortgage rates and affordability pressures to continue impacting customer confidence
Result Drivers
COST SYNERGIES - Redrow integration delivered £73 mln cost synergies in FY26, with £100 mln target confirmed
SALES INCENTIVES - Co used sales incentives to maintain home completion volumes amid subdued consumer sentiment and affordability challenges
Company press release: ID:nRSP9047Ua
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
FY Revenue |
| GBP 6.06 bln |
|
FY Adjusted Pretax Profit |
| GBP 572.8 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the homebuilding peer group is "buy"
Wall Street's median 12-month price target for Barratt Redrow PLC is GBp330.00, about 19.4% above its September 15 closing price of GBp276.40
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 9 three months ago
Reuters Recommended Reads
Sept 15 - UK's Wickes Group H1 revenue rises 2.1%, profit up 1.1%
Sept 15 - UK's Kier Group FY26 revenue rises on infrastructure growth
Sept 15 - UK food price inflation could hit nearly 7% in 2027, says industry researcher
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)