Earnings call transcript: Henry Boot posts H1 2026 loss as land demand softens

Henry Boot's first-half 2026 trading was impacted by weaker land transactions, reduced property activity, and a loss at its homebuilding division, resulting in an operating loss of £3.9 million. Revenue declined by 19% to £80.9 million, and gearing increased to 33% with net debt reaching £133 million. The shares fell 3.2% to $136, near the lower end of its 52-week range.

Hallam Land, the group's main source of embedded value, had over 1,700 plots under offer and 21,000 awaiting determination. Stonebridge Homes, being repositioned, is expected to post a loss in 2026. The interim dividend was suspended as the company focused on cash, debt reduction, and balance-sheet flexibility. Land promotion revenue fell, property investment revenue declined, and construction was affected by the completion of the Road Link contract.

Home building was the only segment with growth, driven by a land sale and higher private completions. Operating cash flow was negative, with a £13.9 million outflow due to poor returns covering interest, tax, and dividend payments. The company's asset-backed balance sheet and planning pipeline offer long-term support. Management expects a better second half, but the first-half performance indicates a challenging operating environment.