London · Delayed Price · Currency is GBP · Price in GBX Barratt Redrow Earnings Call Transcripts
Fiscal Year 2026
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Reservation rates and forward order book rose year-over-year, supporting unchanged completion guidance. Build cost inflation remains contained, Redrow integration is nearly complete, and net cash guidance was raised. Land approvals and spend are being managed cautiously amid market uncertainty.
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Resilient performance delivered in a subdued market, with revenue up 10.5% and 7,444 homes completed. Redrow integration is nearly complete, GBP 100 million synergies confirmed, and FY26 guidance maintained for completions and cash.
Fiscal Year 2025
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Resilient performance delivered in a tough market, with strong cash, improved margins, and cost synergies ahead of target. Private completions rose, while total completions fell due to lower affordable output. Guidance anticipates stable costs, flat outlet growth in FY26, and margin recovery as planning reforms take effect.
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Adjusted profit before tax met consensus, with 16,565 homes completed and strong net cash of £772m. Planning delays and legacy property provisions impacted results, but medium-term targets and cost synergies remain on track.
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Reservation rates are stable, with private order book up 3% and incentive levels steady at 6%. Redrow integration and cost synergy progress are on track, and build cost inflation is expected to remain low. Land availability is strong, and the outlook for completions and cash remains positive.
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Management outlined a strategy focused on sustainable growth, leveraging strong market fundamentals, a diversified land pipeline, and a unique multi-brand approach to accelerate build rates and improve capital efficiency. Medium-term targets include 22,000 homes per year, £100 million in annual synergies, and enhanced shareholder returns.
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Operational performance remained strong with higher completions and upgraded synergy targets following the Redrow integration. Guidance for completions and profit was raised, with a robust cash position and a new share buyback program reflecting confidence in future growth.
Fiscal Year 2024
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Integration with Redrow is progressing, targeting £90 million in synergies and leveraging a multi-brand strategy to boost sales outlets and efficiency. Trading remains solid, with improved reservation rates and a strong order book supporting FY 2025 guidance. Build cost inflation is flat, and the group aims for medium-term growth to 22,000 completions.
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Operational performance remained resilient despite an 18.6% drop in completions and margin pressure from lower volumes and inflation. Strong cash position, stable pricing, and a robust land pipeline support gradual recovery, with the Redrow acquisition set to deliver significant synergies.
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Reservation rates and first-time buyer activity improved, with adjusted profit before tax for FY 2024 expected slightly ahead of expectations. Land approvals accelerated, supporting a recovery in site numbers by FY 2026, while build cost inflation is set to remain flat. Strong sustainability credentials and a robust balance sheet underpin the outlook.