Bellway (LSE:BWY) reported a 13.6% increase in full-year revenue to £3.16 billion for the year ended 31 July 2026, supported by higher housing completions, while underlying profit before tax rose 5.7% to £305.7 million.
The UK housebuilder completed 9,695 homes during FY2026, representing an increase of 10.8% compared with the previous financial year.
Bellway also reported a 36% increase in adjusted operating cash flow to £868.6 million, reflecting cash generation from its development activities and supporting further shareholder distributions.
The board increased the annual dividend by 7.1% to 75p per share and announced plans for a £150 million share buyback programme during FY2027.
The company ended the financial year with net cash of £157.7 million and low adjusted gearing, providing financial capacity to support its development programme and planned capital returns.
Despite the improvement in annual revenue and profitability, Bellway expects a reduction in housing completions during FY2027 as market conditions remain challenging.
Management has set a completion target of between 9,000 and 9,400 homes for the new financial year, compared with the 9,695 properties delivered in FY2026.
The guidance represents a potential reduction of approximately 3% to 7% in annual completions.
Bellway said customer demand continues to be affected by economic uncertainty and elevated mortgage rates, which have placed pressure on housing affordability.
The company also expects operating margins to face pressure from construction cost inflation, increased use of sales incentives and a higher proportion of bulk sales.
Bulk sales, which involve transactions covering multiple properties, are expected to account for a greater share of Bellway’s completions during FY2027.
Management said these transactions would help support sales volumes and cash generation, although their contribution to the overall sales mix is expected to affect margins.
The group is responding to these conditions through tighter cost controls and further standardisation of its operating processes.
Bellway has been implementing measures intended to improve efficiency across its regional divisions, including changes to construction methods and procurement activities.
The company is also developing its timber frame manufacturing capabilities through a new facility, which forms part of its efforts to improve construction efficiency and support future housing delivery.
Management expects greater operational consistency and the use of standardised processes to contribute to longer-term improvements in margins and returns.
Bellway maintains a substantial land bank comprising owned development sites and strategic land interests, providing capacity for future construction activity.
The group intends to manage investment in new land alongside its existing development commitments, with capital allocation remaining a priority as it balances operational expenditure and shareholder returns.
The increase in adjusted operating cash flow to £868.6 million during FY2026 contributed to the company’s year-end net cash position.
This financial performance has enabled Bellway to increase its dividend and introduce a £150 million share repurchase programme for FY2027.
The proposed buyback will operate alongside the company’s ongoing investment in land, construction and development activities.
Bellway also highlighted the potential implications of government measures intended to improve access to home ownership.
The company welcomed the proposed Your First Home scheme, which is intended to support first-time buyers entering the housing market.
Management believes measures addressing affordability could support demand for newly built homes, although the timing and scale of any benefit will depend on the final policy arrangements and broader market conditions.
Bellway continues to operate across the private and affordable housing markets, delivering properties through its nationwide network of regional divisions.
The company has maintained a five-star customer satisfaction rating from the Home Builders’ Federation for ten consecutive years, reflecting its performance against the organisation’s customer recommendation criteria.
Looking ahead, Bellway expects FY2027 to be affected by lower completion volumes and margin pressures associated with construction costs and its anticipated sales mix.
The group is focusing on cash generation, cost management and operational efficiency while maintaining investment in its development pipeline.
Its priorities include delivering between 9,000 and 9,400 homes, progressing improvements to construction processes and managing its land portfolio in response to market demand.
Bellway also intends to continue returning capital to shareholders through dividends and the planned £150 million buyback.
The company’s longer-term strategy remains focused on increasing housing output and improving financial returns when market conditions and affordability allow.
About Bellway plc
Bellway plc is a UK residential property developer specialising in the construction and sale of private and affordable new homes.
The company operates through a nationwide network of regional divisions, developing residential properties across a range of locations and price categories.
Its activities include land acquisition, planning, residential construction and property sales.
Bellway maintains an extensive portfolio of owned and strategic land interests to support future development and housing delivery.
The group is investing in operational improvements, including standardised construction processes and timber frame manufacturing capabilities, to support efficiency and development capacity.
Bellway has retained a five-star rating from the Home Builders’ Federation for ten consecutive years.
The company is listed on the London Stock Exchange under the ticker LSE:BWY.
Its financial strategy focuses on cash generation, capital discipline, low gearing and shareholder distributions through dividends and share repurchases.
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