From Yahoo Finance · · 2m
Barratt Redrow posts solid results despite housing headwinds
The UK housebuilder completed more homes and integrated Redrow, but faces pricing pressure and rising costs.
In brief
The UK housebuilder completed more homes and integrated Redrow, but faces pricing pressure and rising costs. Barratt Redrow grew volumes 5% to 17,667 homes while completing its Redrow integration, but underlying prices fell and margins compressed from incentives and inflation. Originally reported by Yahoo Finance.
Barratt Redrow grows home completions
The UK housebuilder completed 17,667 homes in FY 2026, up 5% year over year, with revenue exceeding £6 billion despite challenging market conditions.
Underlying prices fall nearly 1%
While average selling prices rose 2.2% to £351,700, underlying price analysis showed deflation of just under 1%, with London and the South facing notable pressure.
Margins compressed by incentives and costs
Adjusted operating margin fell to 9.9% from 10.5% as softer pricing, sales incentives and 2% build-cost inflation squeezed profitability.
Adjusted profit before tax drops to £572.8m
Adjusted profit before tax fell to £572.8 million, reflecting higher net interest costs, lower joint-venture profits and margin compression.
Redrow integration complete and validated
Barratt Redrow completed its Redrow acquisition integration and validated its £100 million cost-synergy target, generating a £73 million profit benefit in FY 2026.
Multi-brand strategy shows early promise
Triple-branded sites are selling more than 1.5 homes per week, compared with 0.5 homes per week before the strategy, validating the approach for larger land sites.
“each triple-branded development was selling more than 1.5 homes per week in the first 10 weeks of FY 2027, compared with around 0.5 homes per week before triple branding”
Build costs expected to rise 3-4% in FY 2027
The company forecasts 3% to 4% build-cost inflation weighted toward materials like timber, blocks and plasterboard, though labor inflation should ease.
FY 2027 completions guidance maintained
Barratt Redrow expects 17,500 to 17,900 home completions in FY 2027, operating from about 405 sales outlets, down from 415 due to slower planning approvals.
Company plans £400m capital returns
Barratt Redrow will return £400 million to shareholders in FY 2027, including £386 million in share buybacks, replacing ordinary dividends with repurchases.
Net cash position strengthens to £61.4m
The company ended FY 2026 with a £61.4 million net cash position, up from net indebtedness of £37 million, and expects £400-500 million net cash by year-end FY 2027.
Building safety spending to hit £300m in FY 2027
Barratt Redrow will spend approximately £300 million in FY 2027 and £450 million in FY 2028 on building-safety remediation and Building Safety Fund payments.
New leadership takes the helm
Incoming Chief Executive Dean Banks and Chief Financial Officer Rebecca Napier have joined the business as the outgoing chief executive retires.
The main idea
Barratt Redrow grew volumes 5% to 17,667 homes while completing its Redrow integration, but underlying prices fell and margins compressed from incentives and inflation.
