10 February 2026
If you are covering Bellway’s latest financial results, please find below a comment from Oli Creasey, head of property research at Quilter Cheviot:
“Bellway released its half year trading statement this morning for the period up to the end of January, providing few surprises. Volumes have increased 3% year-on-year, although the company's sales rate (sales per outlet per week) is flat/declining compared to 2025. Management has noted that the November budget created uncertainty that impacted demand for much of the Autumn, which particularly dampened the number of bulk sales that completed in the period. While not mentioned in the statement, poor weather in early 2026 may have also created a headwind.
“Management has noted an "encouraging" increase in the number of reservations and sales leads in the early part of the Spring selling season. Sale prices have also increased 4%, although this is thought to be largely related to geographic and house type changes, rather than driven by underlying house price appreciation.
“Taken together, management has reiterated full year guidance: 9,200 completions (5% up year-on-year) and an operating margin of 11%, unchanged versus 2025. The latter number is somewhat uninspiring for investors, not substantially improved from the 10% trough figure in 2024, and well below the average of c.17-18% experienced a few years ago. Improving volumes is encouraging, but profitability will be the best sign that the housing market is back to form.
“The other area of slight concern is the increased net debt to £72m. Housebuilders generally operate on a net cash basis, and Bellway's increased debt position does go against the grain. The position is small compared to the size of the company - less than 0.5x expected earnings - but with license for another £100m of share buybacks still to come, we might expect to see this figure increase further at the full year results.”
