London · Delayed Price · Currency is GBP · Price in GBX Barratt Redrow Earnings Call Transcripts
Fiscal Year 2026
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Home completions rose 5% year-over-year to 17,667, with strong cash generation and a £400 million capital return planned, mainly via buybacks. Build cost inflation and affordability remain key challenges, but integration of Redrow and the Synergy strategy are delivering operational efficiencies.
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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, £100m cost synergies are confirmed, and guidance for FY26 completions and margins is maintained despite ongoing affordability and planning challenges.
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 remain stable, with private order book up 3% and incentive levels steady at 6%. Build cost inflation is expected to be flat this year and 1%-2% in FY 2026, with synergies progressing and strong land availability. FY 2025 completions are guided at 16,800-17,200 homes.
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Plans target 22,000 homes annually within 3–4 years, leveraging three brands, expanded land pipeline, and £100m annual synergies. Margin recovery, disciplined capital allocation, and innovation underpin sustainable growth, with outlet numbers rising to 475–525.
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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.