Image source: © 2025 Krish Capital Pty. Ltd.

Highlights

  • In FY25, housing completions increased by 14.3% to 8,749 homes, with an average selling price of around £316,000.

  • Housing revenue rose 17% to over £2.76 billion in FY25, with the underlying operating margin expected to approach 11%.

  • Forward order book at year-end stood at 5,307 homes valued at £1.52 billion.

Bellway p.l.c. (LSE:BWY) has issued its Trading Update for the year ended 31 July 2025 ahead of its Full Year Results announcement scheduled for 14 October 2025.

Completions and Revenue Growth

In FY25, total housing completions increased by 14.3% to 8,749 homes compared with 7,654 in 2024. The overall average selling price rose to approximately £316,000 from £307,909 in the previous year, marginally ahead of earlier guidance. Housing revenue increased by 17% to over £2.76 billion, up from £2.36 billion in FY24. The underlying operating margin is anticipated to approach 11%, compared with 10.0% in the prior year.

Reservation Rates and Forward Order Book

The private reservation rate per outlet per week, including bulk sales, was 0.57, representing an 11.8% increase from 0.51 in FY24. Excluding bulk sales, the rate rose by 6.1% to 0.52 from 0.49. At 31 July 2025, the forward order book increased to 5,307 homes from 5,144 in 2024, with a total value of £1,519.4 million, up from £1,412.9 million a year earlier.

Land Acquisition and Financial Position

During the year, Bellway contracted to purchase 8,120 plots, up from 4,621 plots in FY24, as part of its disciplined land acquisition approach. The Group ended the year with net cash of £42 million, in line with Board expectations and an improvement from net debt of £10.5 million in FY24. Adjusted gearing, inclusive of land creditors, remains low at approximately 10%, compared with 6.8% in the previous year.

Dividend and Capital Allocation

The Board expects underlying dividend cover for the full year to be around 2.5 times, with earnings growth driving a proportional increase in dividend payments. Bellway continues to refine its capital allocation framework to balance investment in growth with shareholder returns via dividends and share buybacks. 

Outlook

Bellway plans to maintain broadly flat average outlet numbers in FY26 and aims to grow volume output to around 9,200 homes, supported by a healthy order book and work-in-progress levels. The company anticipates continued benefits from recent Government planning reforms but notes ongoing delays in local authority planning decisions. While demand-side challenges remain for first-time buyers, the Group’s land bank, balance sheet, and capital efficiency measures are expected to support multi-year growth in asset turn, margin, and shareholder value creation.