Barratt Redrow PLC (LSE: BTRW) is an FTSE 100-listed UK housebuilder and commercial developer that acquires land, secures planning permissions, and constructs residential properties. The company operates three consumer-focused brands: Barratt Homes, which specializes in properties for first-time buyers and families across England, Scotland, and Wales; David Wilson Homes, delivering premium family housing; and Redrow, known for its design-led communities. Through these brands, Barratt Redrow PLC addresses diverse housing needs while contributing to the UK's residential development landscape. This Report covers the Investment Highlights, Conclusion, and Recommendation on the stock.

Key Investment Rationale – Buy at GBX 374.10

• Revenue Recovery- The Group delivered GBP 5,578.3 million in revenue in FY25 compared to GBP 4,168.2 million in FY24, supported by 16,565 total home completions and higher average selling prices. This revenue expansion strengthens fixed-cost absorption and supports future operating margin recovery.
• Margin Stabilization- Barratt Redrow generated GBP 784.8 million in reported gross profit in FY25, up from GBP 509.5 million in FY24. Reported gross margin improved to 14.1 percent in FY25 (compared to 12.2 percent in FY24), aided by stable pricing, controlled build costs, and lower legacy property charges. Adjusted gross profit stood at GBP 875.2 million, with an adjusted margin of 15.7 percent.
• Earnings Momentum- Adjusted profit before tax reached GBP 488.3 million in FY25, driven by disciplined cost control, early synergy capture, and resilient operating performance. Adjusted operating profit was GBP 500.1 million, maintaining a 9.0 percent adjusted operating margin despite lower completions and integration-related adjustments.
• Land Bank Strength- The Group holds a combined land portfolio of over 108,655 owned/controlled plots and 145,043 strategic plots, with an estimated land bank gross margin of 19.2 percent. This robust land position provides multi-year revenue visibility and supports medium-term volume targets of 22,000 completions annually.
• Balance Sheet Resilience- The Group ended FY25 with GBP 772.6 million in net cash, providing liquidity to invest in land, fund integration costs, and support a revised capital-return framework, including a minimum GBP 100 million annual share buyback from FY26. This financial strength enhances flexibility and supports long-term shareholder value creation.

BTRW Daily Chart & Valuation

For conducting the valuation, the following peers have been considered: Crest Nicholson Holdings PLC (LSE: CRST), Berkeley Group Holdings PLC (LSE: BKG), etc.

As per the above-mentioned price action and technical indicators analysis, a ‘Buy’ rating has been given on Barratt Redrow PLC (LSE: BTRW) at the Current Market Price of GBX 374.10, as of December 04, 2025 (at 8:08 AM GMT).

Markets are trading in a highly volatile zone currently due to certain Macro & Micro-economic data and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 04 December 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided have been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and/or technical analysis taking into consideration both short-term and long-term scenario.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

Note 6: Dividend Yield may vary as per the stock price movement.