Highlights

  • Barratt Redrow shares declined 5.30% on 11 February 2026, down 15.70% over 12 months.
  • Adjusted PBT fell 13.6% to GBP 199.9m in the 26 weeks ended 28 December 2025.
  • Adjusted operating margin reduced to 8.0% from 8.9% in HY25.
  • Total home completions increased 4.7% to 7,444 during the period.
  • Net cash stood at GBP 173.9m after dividends and share buybacks.
  • FY26 completions guided at 17,200–17,800, subject to Spring sales activity.

Barratt Redrow plc (LSE:BTRW) shares fell 5.30% to GBX 368.40 during the morning session on 11 February 2026, extending the stock’s 12-month decline to 15.70%, today’s price movement coincided with the release of its 26-week results for the period ended 28 December 2025. The update reflected lower adjusted profitability and margin compression despite higher completions and stable reservation trends.

Profitability Eases as Margins Narrow

For the first half, adjusted operating profit before purchase price allocation (PPA) adjustments was GBP 210.2m, marginally below GBP 210.8m in the comparable period. The adjusted operating margin reduced to 8.0% in HY26, compared with 8.9% (aggregated) and 9.3% (reported) in HY25.

Adjusted profit before tax (before PPA adjustments) declined 13.6% to GBP 199.9m in HY26 from GBP 231.4m in the prior comparable period.

Statutory profit before tax was GBP 156.2m, compared with GBP 113.4m (reported) and GBP 85.0m (aggregated) in HY25, reflecting a lower impact from Redrow transaction and integration costs and purchase price allocation adjustments.

Completions Rise as Integration Progresses

Total home completions increased 4.7% to 7,444 in HY2, compared with 7,107 aggregated completions in the comparable period. The underlying net private reservation rate was 0.55, broadly in line with 0.54 (aggregated) previously. The overall net private reservation rate was 0.57 versus 0.59, reflecting fewer private rental sector and other multi-unit reservations.

The Redrow integration is progressing in line with the GBP 100m cost synergy target, with progress also reported on revenue synergy sites through planning.

The balance sheet showed net cash of GBP 173.9m after dividends and share buybacks.

 

 

Forward Sales and FY26 Outlook

Net private weekly reservation rates from 29 December 2025 to 1 February 2026 were 0.59, compared with 0.60 in the prior year, with no contribution from private rental sector or other multi-unit sales in either period.

Forward sales on 1 February 2026 totalled 11,168 homes, compared with 10,903 a year earlier, with a value of GBP 3,407.8m versus GBP 3,350.3m. Of these, 7,277 homes were exchanged or contracted.

The FY26 out-turn remains dependent on Spring selling season activity. Based on the forward sold position and reservation trends, the company expects total home completions of 17,200–17,800 in FY26, including around 600 joint venture completions, in line with previous guidance. Full-year adjusted profit before tax, before PPA adjustments, is expected to be within the current range of consensus estimates.

FAQs

  1. Why did Barratt Redrow shares decline?

The decline followed interim results showing a 13.6% drop in adjusted profit before tax and a reduction in operating margin to 8.0%.

  1. How did home completions perform in the first half?

Total completions increased 4.7% to 7,444 compared with 7,107 in the comparable period.

  1. What is the guidance for FY26?

The company expects 17,200–17,800 total home completions in FY26, subject to Spring selling season performance.