Barratt Redrow reports steady H1 performance as Redrow merger synergies build

Barratt Redrow plc (LSE:BTRW) delivered a stable first-half performance despite subdued UK housing conditions. Total completions increased 4.7% to 7,444 homes, while adjusted operating profit remained broadly unchanged at £210.2 million. Adjusted profit before tax declined 13.6%, reflecting continued pressure on margins.

On a statutory basis, profit before tax rose to £156.2 million, supported by lower transaction and integration costs related to the Redrow acquisition. The group ended the period with net cash of £173.9 million, even after accounting for dividends and share buybacks, underlining the strength of its balance sheet.

Integration of the Redrow business is progressing in line with expectations. Cost synergies remain on track toward the £100 million target, driven by office consolidation, central function efficiencies and improved procurement terms. Revenue synergies are also advancing, particularly through planning initiatives across the enlarged land portfolio.

Barratt Redrow continues to highlight its leadership in build quality and sustainability standards. The forward order book stands at 11,168 homes, valued at £3.41 billion. For FY26, the company expects completions between 17,200 and 17,800 units and anticipates full-year adjusted profit before tax to align with current market consensus, dependent on the strength of the crucial spring selling season.

From an investment perspective, disciplined financial management and a robust balance sheet underpin the outlook, while the ongoing share repurchase programme enhances shareholder returns. However, profitability pressures, technical signals and valuation metrics suggest a degree of caution, with the shares appearing relatively expensive and lacking strong momentum.

More about Barratt Redrow

Barratt Redrow was formed through the combination of Barratt Developments and Redrow and is one of the UK’s leading housebuilders. The group operates across private and affordable housing markets, leveraging a substantial land bank and nationwide divisional structure to drive scale, efficiency and volume growth.

Its strategy emphasises build quality, customer satisfaction and sustainability, positioning the enlarged business to compete across a broad range of residential segments.