Bellway (LSE:BWY) delivered a strong set of full-year results, reporting a 13.6% increase in revenue to £3.16 billion for the year ended 31 July 2026.
The UK housebuilder completed 9,695 homes during FY2026, representing a 10.8% increase compared with the prior financial year.
Underlying profit before tax rose 5.7% to £305.7 million, reflecting both higher volumes and continued management of operating costs across the business.
Adjusted operating cash flow climbed 36% to £868.6 million, demonstrating the group’s ability to convert its development activity into meaningful cash generation.
Bellway ended the financial year with net cash of £157.7 million and low adjusted gearing, providing a solid platform for investment and capital returns.
The board increased the annual dividend by 7.1% to 75p per share, reflecting confidence in the group’s financial position despite a more cautious near-term outlook.
Bellway also announced a £150 million share buyback programme planned for FY2027, adding to the returns being directed back to shareholders alongside the dividend increase.
Despite the strong FY2026 performance, management has guided for a reduction in housing completions during FY2027, targeting between 9,000 and 9,400 homes for the new financial year.
That guidance represents a potential decline of approximately 3% to 7% in annual completions compared with the 9,695 properties delivered during FY2026.
Customer demand continues to be affected by economic uncertainty and elevated mortgage rates, which have placed ongoing pressure on housing affordability across the UK market.
Operating margins are also expected to face pressure from construction cost inflation, increased use of sales incentives and a higher proportion of bulk sales within the overall mix.
Bulk sales, which involve transactions covering multiple properties, are anticipated to account for a greater share of Bellway’s completions in FY2027, which is expected to affect reported margins.
The group is responding to these conditions through tighter cost controls and further standardisation of its operating processes across its regional division network.
Bellway is also developing its timber frame manufacturing capabilities through a new facility, forming part of broader efforts to improve construction efficiency and support future housing delivery.
Management believes greater operational consistency and standardised processes will contribute to longer-term improvements in margins and financial returns when market conditions allow.
Bellway welcomed the proposed Your First Home scheme, which is intended to support first-time buyers entering the housing market, highlighting its potential to stimulate demand for new-build properties.
The company acknowledged that the timing and scale of any benefit from such policy measures will depend on the final arrangements and broader affordability conditions across the housing market.
Bellway has maintained a five-star customer satisfaction rating from the Home Builders’ Federation for ten consecutive years, reflecting consistent performance against its customer recommendation criteria.
The group maintains a substantial land bank of owned development sites and strategic land interests, providing capacity to sustain future construction activity as conditions improve.
Bellway’s longer-term strategy remains focused on increasing housing output and improving financial returns, with capital discipline, cash generation and shareholder distributions central to its priorities going forward.
