# Barratt Redrow posts solid results despite housing headwinds

> The UK housebuilder completed more homes and integrated Redrow, but faces pricing pressure and rising costs.
- Title: Barratt Redrow posts solid results despite housing headwinds
- Summary: 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…
- Keywords: barratt redrow, uk housebuilding, earnings, redrow acquisition, home completions, housing market, pricing pressure, cost inflation, integration, capital returns, building safety, business
- Source: Yahoo Finance — https://finance.yahoo.com/real-estate/articles/barratt-redrow-h2-earnings-call-100220280.html
- Published: 2026-09-16T10:02:20+00:00
- Read time: 2 min
- Topics: barratt redrow, uk housebuilding, earnings, redrow acquisition, home completions, housing market, pricing pressure, cost inflation, integration, capital returns, building safety, business
## 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.
## Key takeaway

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.