Deutsche Bank cut Bellway PLC (LSE:BWY) price targets and profit forecasts amid volume and margin pressure, but kept its 'buy' rating. The bank reduced its target by 8% to 2,685p from 2,917p.
Bellway p.l.c. (BLWYY) Q4 2026 Earnings Call Transcript
Bellway PLC (LSE:BWY), the UK housebuilder, reported a 21.8% rise in annual pre-tax profit and announced a £150 million share buyback for the current financial year despite warning that completions and margins are set to fall. Reported profit before tax increased to £270.2 million for the year to 31 July from £221.9 million, while underlying pre-tax profit rose 5.7% to £305.7 million.
Bellway PLC (LSE:BWY) has delivered a stronger-than-expected year, with housing completions up 10.8% and operating cash flow beating its previous guidance. The housebuilder completed 9,695 homes in the year to 31 July, ahead of its 9,300 to 9,500 target and up from 8,749 a year earlier.
Barratt Redrow PLC (LSE:BTRW) and Bellway PLC (LSE:BWY) shares rose on Friday after Berenberg upgraded both housebuilders to 'buy', arguing that strong balance sheets and generous shareholder returns offer an attractive opportunity despite a worsening outlook for the sector. The broker cut its average profit before tax forecasts for the sector by 15% for 2027, citing elevated mortgage rates, higher energy costs and pressure on margins.
Bellway PLC's (LSE:BWY) volume story remains intact, but Citi sees cost inflation and incentives continuing to weigh on margins as the housebuilder works to sustain sales momentum in a difficult market. Analyst Ephrem Ravi said Bellway's latest update pointed to “resilient volume visibility”, with management expecting bulk sales to support delivery and remaining confident about sustaining momentum into FY27 and hitting its FY28 volume targets.
Bellway PLC (LSE:BWY) said it remains on track to meet full-year profit guidance despite a recent slowdown in customer demand and renewed pressure on building material costs. The housebuilder said trading improved at the start of the spring selling season compared with last autumn, but demand softened in April and May following a rise in mortgage rates.
Bellway p.l.c. (BLWYY) Q2 2026 Earnings Call Transcript
Bellway PLC (LSE:BWY) shares fell 6.7% to 1,994p after interim results that showed steady progress, with investors unnerved by the shockwaves from the war in the Middle East that have led to renewed mortgage market volatility. The group completed 4,702 homes in the six months to 31 January 2026, up around 3%, while operating profit edged 1.5% higher to £159 million, though margins slipped from 11.0% to 10.5%.
British homebuilder Bellway trimmed its operating margin outlook for fiscal 2026 on Tuesday, as the sector grapples with the risk of further interest rate hikes dampening housing demand.
Bellway PLC told investors it remains on track to deliver around 9,200 completions in FY26 after first-half output edged higher, even as private demand stayed muted through the autumn and the forward order book fell year on year. The housebuilder completed 4,702 homes in the six months to 31 January 2026, up 2.7% on the prior year, with an average selling price of around £322,000.
Bellway (BLWYY) has been upgraded to a Zacks Rank #1 (Strong Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.