UK's Bellway half-year revenue rises on higher housing completions

Bellway

24/03/2026 07:11

Overview

UK homebuilder's half-year revenue rose 6.3% yr/yr, driven by higher housing completions and prices

Adjusted EBIT margin declined to 10.5% amid cost inflation and increased sales incentives

Company repurchased £64 mln of shares under ongoing £150 mln buyback program

Outlook

Bellway expects FY26 home completions between 9,300 and 9,500, above previous guidance

Company anticipates FY26 underlying operating profit of £320 mln-£330 mln

Bellway sees FY26 underlying operating margin at around 10.5%

Result Drivers

HIGHER COMPLETIONS AND PRICES - Revenue growth was supported by a 2.7% increase in housing completions and a 3.7% rise in average selling price, per company

COST INFLATION AND INCENTIVES - Underlying gross margins faced pressure from residual build cost inflation, extended site durations, and increased use of sales incentives, according to company

Company press release: ID:nRSX7571Xa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
Meet
GBP 1.52 bln
GBP 1.52 bln (1 Analyst)
H1 Adjusted EBIT
Miss
GBP 159 mln
GBP 174.36 mln (1 Analyst)
H1 Adjusted EBIT Margin
10.50%
H1 Adjusted Gross Margin
16.20%
H1 Pretax Profit
GBP 139.90 mln
H1 Underlying Pretax Profit
GBP 150.90 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 4 "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 Bellway PLC is GBp3,275.00, about 53.2% above its March 23 closing price of GBp2,138.00

The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 14 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)