16 September 2026
If you are covering Barratt Redrow's latest results, please see the following comment from Oli Creasey, head of property research at Quilter Cheviot:
Barratt Redrow's FY results this morning are broadly in-line with expectations. Having previously released a relatively positive trading statement in July outlining top line numbers (completions 5% vs 2025, at the top end of guidance), the full results are more balanced. Operating profit is flat year-on-year, with the operating margin down 60bps to 9.9%. While it is largely symbolic, investors may be disappointed that BTRW is the latest housebuilder to slip to a single-digit operating margin, a sign of continued market stress that is not unique to the company. The Earnings Per Share (EPS) has fallen 11%, but at 28.5p per share is roughly in-line with sell-side expectations.
The company has reiterated plans for capital returns that were first announced in July, which comprise primarily of a £386m share buyback and a nominal 1p per share dividend. While an increase in total spend, one criticism of share buybacks is the lack of visibility on the impact of shareholder returns. Barratt's share price is down 2% since the start of H2, when the buybacks commenced, no better than the average for the wider UK housebuilding sector.
Of note to investors this morning is a cut to volume guidance, first provided in July. The previous range has been downgraded to 17,500-17,900, a 1.4% cut at the midpoint of the range. While not a huge reduction, it isn't helpful for investors looking for green shoots. The reduction is being blamed on planning delays and a smaller number of open sales outlets over the year rather than wider market troubles, but the impact is still negative, and we would expect it to cascade down the income statement to put further pressure on operating margin and EPS expectations.
