Barratt Redrow jumps on full-year profit beat, trims 2027 completions outlook

Barratt Redrow, the housebuilder, reported stronger-than-expected full-year results for the period ending June 28, 2026, leading to a significant jump in its share price. The company's adjusted profit before tax rose to £572.8 million, surpassing analysts' expectations of £540.3 million. However, this figure showed a year-on-year decline of 7.1%, with the operating profit margin decreasing from 10.5% to 9.9%.

In response to planning delays, the company has revised its 2027 home completions outlook downwards, now predicting 17,500-17,900 completions, down from the previous range of 17,700-18,200. This reduction is attributed to a lower anticipated number of sales outlets opening, averaging around 405 compared to the earlier estimate of 415.

Despite this, the company delivered 17,667 completions in the previous year, representing a 5% increase from 16,826 in the prior year, which was close to the upper end of its guidance range. Revenue increased by 6.6% to £6.06 billion, while adjusted operating profit margin rose slightly to £598.1 million from £594.4 million. However, adjusted earnings per share fell to 28.5p from 32.1p.

Barratt Redrow's Chief Executive, David Thomas, who is retiring after a decade in charge, highlighted the company's solid performance in a challenging market, with adjusted profit before tax meeting expectations. The firm also completed £100 million in cost synergies and maintained a net cash position of £772.8 million after distributing £242.2 million in dividends and conducting £100 million in share buybacks.

The company reaffirmed its £400 million capital return plan for 2027, including a share buyback of approximately £386 million, of which £53.5 million has already been executed as of September 6. Barratt Redrow's current trading indicates a net private weekly reservation rate of 0.62, up from 0.55 in the preceding year, and forward sales of 11,200 homes worth £3.34 billion, representing a 6% increase from 10,593 homes worth £3.22 billion in the prior year.