Highlights

  • BWY’s housing completions increase 14.3% to 8,749 homes in FY25.
  • Underlying operating profit rises 27.5% to GBP 303.5m with operating margin reaching 10.9%.
  • Group announces GBP 150m share buyback programme for capital allocation efficiency.

Bellway PLC (LSE:BWY) has announced its financial results for the year ended 31 July 2025, showing robust growth in revenue, profit, and housing completions.

Financial Results

Revenue for FY25 increased 16.9% to GBP 2,782.8 million, compared with GBP 2,380.2 million in FY24. Housing completions rose 14.3% to 8,749, up from 7,654 in the previous year.

Underlying gross profit grew 19.9% to GBP 456.8 million, with the gross margin improving to 16.4% from 16.0% in FY24. Underlying operating profit rose 27.5% to GBP 303.5 million, increasing the operating margin to 10.9% from 10.0% in FY24.

Underlying profit before tax climbed 27.9% to GBP 289.1 million, while underlying earnings per share grew 30.7% to 176.7 pence. Statutory profit before tax reached GBP 221.9 million, up from GBP 183.7 million. Statutory earnings per share were 132.8 pence compared to 109.8 pence last year.

Bellway proposed a total dividend per share of 70.0 pence, an increase of 29.6%. Net asset value per share rose 2.6% to 2,989 pence, and net cash improved to GBP 41.8 million, reversing the net debt of GBP 10.5 million in FY24.

Operational Highlights

The Group’s land bank stood at 95,704 plots, comprising 47,144 owned and controlled plots. Bellway contracted to acquire 8,120 plots during FY25, compared to 4,621 in FY24.

Average outlet count for the year was 246, closing at 249. The company’s new timber frame facility, Bellway Home Space, remains on schedule to commence frame supply in early 2026. Customer satisfaction levels remained high, with Bellway retaining its five-star homebuilder rating for the ninth consecutive year.

Private reservation rates improved in the second half of FY25 to 0.62, up from 0.51 in the first half, with an overall FY25 rate of 0.57 including bulk sales. As of 5 October 2025, the forward order book comprised 5,285 homes valued at GBP 1,526.9 million.

FY26 Outlook

Bellway anticipates housing completions of around 9,200 homes in FY26, with an average selling price of approximately GBP 320,000. The underlying operating margin is expected to remain at around 11.0%.

The company plans to execute a GBP 150 million share buyback programme over the next twelve months. Ordinary dividend policy will continue, maintaining an underlying dividend cover of 2.5 times.

Management Commentary

Jason Honeyman, Chief Executive, commented:
"Bellway has delivered a good performance in FY25 with double-digit growth in volume output and profits, and our sharper focus on balance sheet efficiency is reflected by the GBP 150m share buyback programme announced today. While we face some near-term market challenges, we have a high-quality land bank, strong balance sheet and the operational capacity to capitalise on the positive long-term fundamentals of our industry. Combined with our refreshed and disciplined approach to capital allocation, I am confident that we can drive increased volume output, cash generation and shareholder returns in FY26 and beyond. Bellway remains very well-positioned to continue delivering much needed high-quality new homes in the years ahead. However, supportive Government policy is essential for the industry to drive a meaningful and sustained increase in housing output. The Government must demonstrate its commitment to accelerating housebuilding by driving through planning reform and addressing the affordability constraints facing first-time buyers across the country."

Share performance

The company is currently trading at GBX 2,620 up by 5.57% from its previous close of GBX 2,478.